Aligned with the vision of Prime Minister Narendra Modi on ‘Waste to Wealth,’ Aatmanirbhar Bharat, and green energy, Gujarat’s development model has emerged as a compelling national benchmark.
The state government in a statement on Friday said that the Banas Bio-CNG plant model, developed under the guidance of Chief Minister Bhupendra Patel, is now being adopted by nearly 15 states across the country through the joint efforts of the Union Ministry of Jal Shakti and the Union Ministry of Cooperation.
“This project, developed by Banas Dairy, is transforming the rural economy by converting organic waste such as cow dung into clean fuel and organic fertilizer,” it said.
The state government said that Rs 60 crore has been allocated in the budget by the Gujarat government for Bio-CNG.
It said that the decision was taken after recognizing the vast potential of this innovative initiative, and thus the Gujarat government placed the Bio-CNG sector at the top of its budget priorities.
“Under the leadership of Chief Minister, the state government has made a special provision of Rs 60 crore to establish new plants through cooperative milk production societies,” it stated.
It explained that the objective of this budget allocation is to transform the dairy sector into a “hub for clean energy production” and to make the rural economy self-reliant.
Notably, under this scheme, a phased plan has been proposed to establish around 10 Bio-CNG plants across the state.
It also pointed out that the Banas Bio-CNG plant in Banaskantha, with a daily processing capacity of 40 metric tonnes of dung, has been successfully operational for the past six years and stands as a proven model.
“Inspired by its success, work is underway to set up five large Bio-CNG plants in Banaskantha. Currently, out of the five planned plants, two have become operational, while the third is in the final stage of completion,” it said.
It also said that each plant scientifically processes approximately 100 metric tons (1 lakh kilograms) of dung per day. Built at an estimated cost of Rs 50–55 crore, these plants are excellent examples of modern technology and infrastructure, demonstrating how ecology and economy can progress together and how environmental conservation, farmer prosperity, and industrial growth can be achieved simultaneously.
The government also said that the Bio-CNG plants established in Banaskantha cover animal husbandry farmers’ families from around 20–25 villages within a radius of approximately 20 kilometers, who regularly supply dung.
It stated that farmers are paid Rs 1 per kilogram for dung, providing additional income to nearly 400–450 animal husbandry farmers’ families.
Around 13 tractor-trolleys are used for the collection and transportation of cow dung, each with a capacity of about 4 metric tonnes per trip, thereby generating employment and boosting local economic activities in rural areas.
“Moreover, the plant operates on a diversified revenue model based on multiple products, meaning income is generated not only from gas but also from fertilizers and other by-products. Under this model, approximately 1,800 kilograms of compressed biogas (CNG) is produced daily and made available in the market at around Rs 75 per kilogram,” it said.
In addition, about 25 metric tonnes of solid organic fertilizer and 75 metric tonnes of liquid organic fertilizer are produced and sold at approximately Rs 6 per kilogram and Rs 0.50 per kilogram, respectively. Together, these three products generate a daily revenue of over Rs 3 lakh for the plant, which can reach approximately Rs 12 crore annually.
“This innovative project of Gujarat is not only a breakthrough in the energy sector but also a revolutionary step toward environmental conservation. This model has the capacity to reduce approximately 6,750 tonnes of CO₂e (carbon dioxide equivalent) greenhouse gas emissions annually, reflecting Gujarat’s significant contribution in addressing the global challenge of climate change. The convergence of clean fuel production, availability of chemical-free organic fertilizers, and scientific waste management is transforming the vision of ‘Green Banaskantha’ into the broader reality of ‘Green Gujarat,'” it added.
