Biogas plants in 6 states to buy ₹15 lakh worth of cow dung a day
Farmers in six states can sell cow dung for ₹1/kg to support 15 biogas plants under a clean energy initiative backed by India-Japan cooperation.
Farmers in six states will be able to sell cow dung for ₹1 per kg, a procurement price fixed by the National Dairy Development Board (NDDB) for feeding compressed biogas plants, part of an expanding India-Japan push for clean energy, an official said.
The state-run NDDB, which promotes and finances dairy cooperatives, is in the process of setting up 15 biogas plants in Gujarat, Rajasthan, Odisha, Goa and Bihar, for which supply chains are being organised to purchase animal waste from farmers, according to the official.
Clean energy has emerged as a key area of agricultural cooperation between Japan and India. During Prime Minister Narendra Modi’s trip to Tokyo last month, aimed at deepening economic ties, Japanese firms pledged investments of $68 billion in India, across areas, such as alternative energy, mobility, semiconductors and AI, a second official said.
Suzuki Motor Corporation has forged a partnership with the National Dairy Development Board (NDDB) for setting up an array of plants for compressed biogas, which is a purified form of biogas and a renewable fuel produced from animal waste through an anaerobic decomposition process.
“Suzuki R&D Center India, a subsidiary of Suzuki Motor Corporation, is investing in NDDB Mirda Ltd., which is the NDDB’s biogas subsidiary to establish dung-based compressed biogas plants. Suzuki’s initial investment is aimed to acquire a 26% equity stake in NDDB Mirda, with potential to increase its stake to 49% later,” the first official said.
NDDB’s 15 plants will require an estimated 1500 tonnes of cow dung a day, which at a price of ₹1 translates into a total cost of ₹15,00,000 payable to dairy farmers every day (or almost ₹55 crore a year) . Along with NDDB, several other state-backed and private firms have planned to invest over ₹1400 crore in setting up bio-energy plants that will rely on farm wastes and residues.
In 2018, the Modi government had set a target of setting up 5,000 biogas plants by 2024, aiming to produce 54 million cubic meters of gas daily, or nearly half of India’s gas demand. With only 114 plants currently running, the goal however is yet to be met.
Japan’s Sojitz Corporation, in partnership with Indian Oil, has lined up an investment of $395 million to establish 30 biogas plants using feedstock from farm wastes. Sojitz Corporation has invested in a special purpose company, IOC GPS Renewables Pvt. Ltd.(IGRPL), set up jointly by GPS Renewables Pvt Ltd and IOL Ltd, the largest state-owned oil company.
“Farmers will supply crop residues and agri-waste for the plants through contracts at remunerative prices. Through this business, IGRPL plans to have 30 biomethane plants operational in India by 2026-27,” a spokesperson of the company said.
Analysts say turning agricultural biowaste, including stubble, into biogas is one of the ways India could tackle its worsening air-quality crisis and cut imports of fuel, which included $13.3 billion worth of liquefied natural gas bought from overseas markets in FY25, according to petroleum ministry data.
