Policy aims to promote production of compressed biogas from agricultural residue, cattle dung and organic waste; aims to boost farmers’ income, create rural employment and support sustainable development.

In a major step towards promoting clean energy, sustainable agriculture and rural development, the Government of Chhattisgarh has approved the Chhattisgarh Compressed Biogas (CG-CBG) Policy 2026 to encourage the production of compressed biogas from agricultural residue, cattle dung and other organic waste. The approval was accorded at the meeting of the Chhattisgarh Cabinet chaired by Chief Minister Vishnu Deo Sai on June 23, 2026.

The policy seeks to encourage the scientific utilisation of agricultural residue, cattle dung, animal waste, municipal organic waste and other biodegradable resources for the production of Compressed Biogas (CBG), a clean and environment-friendly fuel. The initiative is expected to strengthen the circular economy, reduce environmental pollution and contribute to the state’s energy security.

Chief Minister Vishnu Deo Sai said, “The CG-CBG Policy 2026 will create new opportunities for farmers, cattle rearers and the rural economy of Chhattisgarh. Better utilisation of agricultural residue and organic waste will help increase farmers’ incomes and generate employment and entrepreneurship opportunities in rural areas.”

He added, “The policy will be a significant step towards establishing Chhattisgarh among the country’s leading states in clean energy production, green industry, organic agriculture and sustainable development. This initiative will further strengthen our vision of building a Viksit Chhattisgarh.”

The Government of Chhattisgarh estimates that the state has the potential to produce nearly 5 lakh tonnes of compressed biogas annually through the effective utilisation of available biomass and organic waste resources. The policy is expected to unlock significant opportunities in the bio-energy sector while promoting environmentally sustainable industrial development.

The policy will directly benefit farmers by creating an additional source of income through the sale of crop residue and other agricultural waste that is often left unused. It is also expected to generate employment opportunities in rural areas through the establishment and operation of CBG plants, while encouraging local entrepreneurship and economic activity.

In addition to supporting clean energy generation, the policy aims to address challenges associated with agricultural waste management and organic waste disposal. Increased adoption of compressed biogas will help reduce dependence on conventional fossil fuels and contribute to cleaner and more sustainable energy use.

The CG-CBG Policy 2026 aligns with the Government of India’s Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which promotes compressed biogas as a clean transportation fuel. The policy is expected to strengthen Chhattisgarh’s contribution to national renewable energy and climate goals.

To encourage investment in the sector, the policy provides for various incentives and facilitation measures, including capital support, interest subsidy, infrastructure assistance and support for obtaining necessary approvals. These measures are aimed at creating a conducive ecosystem for investors and developers interested in establishing CBG projects in the state.

The Chhattisgarh Biofuel Development Authority (CBDA) has been designated as the nodal agency for implementation of the policy. The authority will coordinate with investors, industries, government departments and other stakeholders to ensure effective execution of the initiative.

The state government expects the policy to accelerate the development of a robust bio-energy ecosystem, create sustainable livelihood opportunities in rural areas and help position Chhattisgarh among the country’s leading states in clean energy, green industry and sustainable development.