Overview
On 22 April 2026 , the Maharashtra Cabinet approved the Compressed Biogas (CBG) Policy, 2026 . The government officially released it on 5 May 2026 . Chief Minister Devendra Fadnavis led this decision. The policy provides ?500 crore for the financial year 2026-27. It aims to turn organic waste into renewable fuel. The state wants to set up CBG projects in every district.
What Is the Compressed Biogas Policy 2026?
Maharashtra has launched a new policy to promote Compressed Biogas (CBG) . The state cabinet approved it on 22 April 2026 . The official release happened on 5 May 2026 . Chief Minister Devendra Fadnavis heads the government that passed this policy. The state has set aside Rs 500 crore for the year 2026-27 to support this plan.
What Is Compressed Biogas?
Compressed biogas is a renewable fuel . It comes from organic waste. The process has two main steps:
-
Anaerobic digestion – Bacteria break down waste without oxygen. This produces raw biogas.
-
Purification – The raw gas is cleaned to become pure compressed biogas.
CBG works as a fuel for vehicles and industries . It is a clean alternative to petrol and diesel.
Where Does the Waste Come From in Maharashtra?
Maharashtra produces a huge amount of waste every day. The policy uses two types of waste:
| Waste Type |
Amount Generated |
| Municipal solid waste (urban) |
24,500 metric tonnes per day |
| Agricultural residue |
More than 20 million metric tonnes per year |
This waste is currently a problem. The policy turns it into a valuable resource.
How Will the Policy Be Implemented?
The policy has a clear plan. The government wants one CBG project in every district of Maharashtra.
Implementation models:
Key rules for each CBG project:
Who will oversee this?
What Financial Support Does the Policy Offer?
The government wants to attract investors. So it gives several incentives:
| Incentive |
Details |
| Viability Gap Funding (VGF) |
Up to Rs75 lakh per tonne of CBG capacity |
| Maximum VGF per project |
Rs15 crore |
| SGST refund |
2.5% refund on State Goods and Services Tax after production starts |
| Priority services |
Electricity and water supply to CBG units |
Important condition: If a project does not start operations within two years , the land allocation will be cancelled. This keeps projects on track.
How Does This Policy Link to National Programmes?
Maharashtra’s CBG policy supports three major national initiatives:
-
SATAT (Sustainable Alternative Towards Affordable Transportation) – Promotes CBG as transport fuel.
-
GOBARdhan (Galvanising Organic Bio-Agro Resources) – Converts cattle dung and farm waste into biogas.
-
Swachh Bharat Mission – Improves solid waste management across India.
Why Is This Policy Important for India’s Future?
The policy connects waste management with renewable energy. It also helps India reach its Net-Zero target by 2070 . Less waste goes to landfills. Less fossil fuel gets burned. Cleaner air and better farming are added benefits.
FAQ Section
Q1: When was the Maharashtra CBG Policy 2026 approved?
The cabinet approved it on 22 April 2026. The policy was released on 5 May 2026.
Q2: How much money has the government set aside for this policy?
?500 crore for the financial year 2026-27.
Q3: What is the minimum waste processing requirement for one CBG project?
At least 200 tonnes of segregated organic waste per day.
Q4: What is Viability Gap Funding?
It is financial support for infrastructure projects that have a funding gap. The government pays part of the cost to make the project viable.
Q5: What happens if a project does not start in two years?
The land allocation will be cancelled.
Q6: Which national schemes does this policy support?
SATAT, GOBARdhan, and Swachh Bharat Mission.
Q7: How does CBG help the environment?
It turns waste into clean fuel, reduces landfill waste, and cuts down fossil fuel use.
Q8: Who chairs the steering committee for this policy?
The Chief Secretary of Maharashtra.
Exam-Focused Points