Maharashtra’s New CBG Policy 2026: Rs 500 Crore for Waste-to-Fuel Projects

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:

1. Anaerobic digestion  – Bacteria break down waste without oxygen. This produces raw biogas.

2. 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:

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:

• Public-Private Partnership (PPP)  – Government and private companies work together.

• Hybrid Annuity Model  – A mix of government funding and private investment.

Key rules for each CBG project:

• Must process at least  200 tonnes  of segregated organic waste per day.

• Waste must be sorted into  organic and inorganic  categories at the source (homes and businesses).

Who will oversee this?