Palanpur (Gujarat), Oct 27 — Four Bio-CNG plants operated by Banas Dairy in Gujarat’s Banaskantha district are processing 340 tonnes of cattle dung daily, with plans to expand the network to around 200 plants to generate additional income for livestock rearers and produce cleaner fuel.
Prime Minister Narendra Modi is scheduled to inaugurate and lay the foundation stones for five major Banas Dairy development projects on October 30, 2026.
The dairy cooperative has developed a model in which cattle dung, traditionally treated as waste, is converted into compressed biogas, organic fertiliser and a source of regular income for livestock-rearing families.
Banaskantha has approximately 28 lakh livestock, of which 24 lakh belong to livestock rearers associated with Banas Dairy.
The district generates an estimated 24,000 tonnes of cattle dung daily. The dairy began purchasing cattle dung in February 2020 from Dama village in Deesa.
On August 25 that year, the country's first commercial-scale compressed biogas (CBG) outlet was inaugurated.
Subsequently, under a tripartite agreement with Suzuki Motor Corporation and the National Dairy Development Board (NDDB), plants were established at Agthala, Bhukhala and Vinchhivada.
Four plants are currently operational, processing 340 tonnes of dung daily. With additional plants at Tharad and Radhanpur, the network's daily processing capacity is expected to rise to 515 metric tonnes.
Under the model, cattle dung is weighed at farmers' premises and purchased at approximately Rs 1 per kg. Payments are credited directly to their bank accounts every fortnight along with their milk bills.
The Bio-CNG produced at the plants is sold to motorists at Rs 75-80 per kg, compared with the prevailing conventional CNG price of approximately Rs 92 per kg in Gujarat.
The processing units also produce solid and liquid organic fertilisers from the resulting slurry. Marketed under the ‘Bhumi Amrut’ brand, these products are supplied to farmers through local dairy cooperatives to help improve soil quality.
The initiative also seeks to reduce methane emissions from cattle dung left to decompose in the open by capturing the gas and converting it into fuel.
Banas Dairy has reportedly rejected an offer to export cattle dung to Dubai, choosing instead to use the resource domestically.
The proposed expansion to around 200 plants is estimated to generate 1,168 lakh kg of compressed biogas annually and provide livestock rearers with direct financial returns of Rs 875 crore a year.
State Assembly Speaker and Banas Dairy chairman Shankar Chaudhary said the organisation's objective extended beyond milk procurement to linking clean energy with rural livelihoods and securing the future of livestock rearers.
“Through this initiative, India's remote villages will lead the global green revolution towards net-zero carbon emissions,” Chaudhary said.
He said the project, aligned with the Prime Minister's vision of an "Atmanirbhar Bharat", would bring additional income to livestock rearers, improve village cleanliness, provide affordable vehicle fuel, supply organic fertiliser and create local employment opportunities.
Building on the Banaskantha model, India and Japan have also launched the Japan-India Co-operative Biogas Initiative, which aims to establish 1,000 biogas plants across the country.