300 TPD bio-gas facility at Meherpalli to convert municipal waste into clean fuel; commercial production targeted by April 2027

 

THEBUSINESSBYTES BUREAU

BHUBANESWAR, JUNE 20, 2026

In a significant step towards sustainable urban development and clean energy generation, Prime Minister Narendra Modi on Saturday virtually laid the foundation stone for a 300 tonnes per day (TPD) Compressed Bio-Gas (CBG) Plant at Meherpalli in Bhubaneswar. The ambitious ₹175-crore waste-to-energy project, being developed through a partnership between the Bhubaneswar Municipal Corporation (BMC) and Oil India Limited (OIL), is expected to transform the city’s wet waste into renewable fuel, strengthen scientific waste management, and advance Odisha’s circular economy goals.

The Prime Minister also inaugurated two key drinking water supply projects under the Housing & Urban Development Department. These include the improvement of water supply infrastructure in Chatrapur NAC at a cost of ₹16.40 crore and the augmentation of drinking water facilities in Digapahandi NAC at a cost of ₹10.16 crore, including the construction of an intake well and laying of a Rising Water Raw Main (RWRM). The projects are expected to significantly improve access to safe and reliable drinking water for residents of both urban local bodies.

The CBG project marks another major milestone in BMC’s efforts to transform municipal waste into valuable resources through scientific waste management while reinforcing Odisha’s commitment to clean energy, resource recovery, and environmental sustainability.

The project is being implemented through a strategic partnership between BMC and Oil India Limited. Once operational, the facility will process a substantial portion of Bhubaneswar’s wet municipal waste and convert it into clean and renewable Compressed Bio-Gas, reducing dependence on conventional waste disposal systems and strengthening the city’s integrated solid waste management ecosystem.

BMC had signed a Memorandum of Understanding (MoU) with Oil India Limited on December 16, 2024, for the establishment of the Bio-Methanation (Compressed Bio-Gas) Plant at Meherpalli. The project is being developed by Oil India Limited at an estimated investment of ₹175 crore.

Under the agreement, BMC has provided nearly 10 acres of land at Meherpalli and will ensure the supply of around 200 metric tonnes of segregated wet waste per day as feedstock for the facility. The plant has been designed with provisions for future expansion up to 300 TPD. Oil India Limited will oversee the operation and maintenance of the facility, ensuring efficient and professional management.

The plant will employ advanced anaerobic digestion technology to scientifically process municipal wet waste and is expected to generate approximately 10–14 tonnes of Compressed Bio-Gas every day. The renewable fuel produced will contribute to India’s clean energy transition while reducing the environmental burden of urban waste.

In addition to bio-gas, the facility will generate nutrient-rich organic manure and liquid bio-fertilizers that can be utilized in agriculture, promoting resource recovery and supporting sustainable farming practices.

The project aligns closely with the objectives of the Swachh Bharat Mission and the Solid Waste Management Rules by ensuring scientific processing of municipal waste and minimizing dependence on landfill-based disposal. Once operational, a majority of the wet waste currently transported to Transfer Stations (TTS) will be directly diverted to the CBG plant for processing.

Beyond improving waste management efficiency, the facility is expected to significantly reduce greenhouse gas emissions by preventing open dumping and replacing fossil fuels with renewable bio-gas. The use of organic manure and liquid fertilizers produced by the plant will further reduce dependence on chemical fertilizers and contribute to better soil health.

To ensure environmentally sustainable operations, the plant will be equipped with an in-built Effluent Treatment Plant (ETP) and other pollution-control systems for the proper treatment of leachate and process residues, ensuring compliance with environmental norms.

The project is also expected to create substantial employment opportunities. More than 60 direct jobs will be generated in plant operations, maintenance, and administration, while numerous indirect employment opportunities are likely to emerge in waste collection, segregation, transportation, and allied services.

The establishment of the CBG plant represents a major step towards realizing the vision of “Waste to Wealth” by converting municipal wet waste into clean energy and value-added products. It is expected to further strengthen Bhubaneswar’s position as a leading city in sustainable waste management and environmental stewardship.

Speaking on the occasion, dignitaries lauded the collaborative initiative of BMC and Oil India Limited in advancing sustainable urban development and renewable energy generation. Officials of Oil India Limited informed that the project is targeted for completion by April 2027, with commercial production of Compressed Bio-Gas expected to commence thereafter.

The foundation stone was laid virtually by the Prime Minister from Rairangpur, Odisha. A special programme was organised at the project site in Meherpalli and attended by Bhubaneswar MP Aparajita Sarangi, BMC Mayor Sulochana Das, Additional Chief Secretary of the Housing & Urban Development Department Usha Padhee, Deputy Mayor Manjulata Kahar, BMC Commissioner Chanchal Rana, Standing Committee Chairman (Sanitation & Health) Biranchi Narayan Mahasupakar, and Oil India Limited Chairman and Managing Director Dr. Ranjit Rath, along with corporators, standing committee chairpersons, senior BMC officials, and representatives of Oil India Limited.