The Maharashtra state government has taken a significant step towards promoting sustainable energy by approving the transfer of 18 acres of land in Deonar to Mahanagar Gas (MGL) for the development of compressed bio-gas (CBG) plants.

This environmentally conscious project, with a total investment of Rs 600 crore, will utilize municipal wet waste as its primary feedstock. 

The project will be developed in two phases, with MGL investing over Rs 600 crore in construction and operationalisation. The plants will process municipal wet waste. 

Approved during a state cabinet meeting chaired by Chief Minister Devendra Fadnavis, the project aligns with the central government’s Gobardhan scheme, which targets 500 biogas projects, including 75 bio-methanation plants in urban areas.

This initiative is in direct alignment with the central government’s Gobardhan scheme, which promotes the conversion of organic waste into valuable resources, and underscores the state's strong commitment to implementing sustainable urban waste management practices through the production of renewable energy sources.

While oil and gas companies will fund the infrastructure, states are to provide land and facilities at nominal rates. 

To facilitate this, the state has permitted the land allotment at a concessional lease rent of Rs 72,843 per year for 20 years, extendable by five years. 

The MoU between BMC and MGL was signed in June 2023, marking a major step toward sustainable urban waste management.