GAIL and BPCL to Establish Compressed Biogas Plants in Chhattisgarh

GAIL (India) Limited, formerly the Gas Authority of India Limited, is a premier public sector undertaking (PSU) under the aegis of the Ministry of Petroleum and Natural Gas, Government of India. Established in 1984, GAIL stands as the cornerstone of India’s natural gas sector and holds the distinction of being the nation’s largest state-owned entity in natural gas processing and distribution.

Chhattisgarh Biofuel Development Authority’s Partnership

In a groundbreaking initiative, the Chhattisgarh Biofuel Development Authority (CBDA) has entered into a tripartite agreement with GAIL (India) Limited and Bharat Petroleum Corporation Limited (BPCL) to produce compressed biogas (CBG) from urban solid waste across six municipal corporations in the state.

GAIL Expansion 

Chhattisgarh harbours immense potential for biofuel production, particularly CBG, under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme. This landmark collaboration aims to establish cutting-edge CBG production plants in the municipal corporations of Ambikapur, Raigarh, Korba, Bilaspur, Rajnandgaon, and Dhamtari.

Under this accord, GAIL will spearhead the development of plants in Ambikapur, Raigarh, and Korba, while BPCL will oversee operations in Bilaspur, Rajnandgaon, and Dhamtari.

Revolutionising Waste into Wealth

This visionary project envisages utilising approximately 350 metric tonnes of urban solid waste daily, coupled with an additional 500 metric tonnes of surplus biomass from these municipalities, to produce biofuel. These state-of-the-art plants are expected to generate around 70 metric tonnes of CBG per day.

Investment By GAIL and BPCL

The combined investment by GAIL and BPCL will amount to a substantial ₹600 crore, while the state exchequer stands to benefit from an annual goods and services tax (GST) revenue of ₹6 crore derived from the production and sale of biofuel.

Remarked From Chief Minister Vishnu Deo Sai 

Chief Minister Vishnu Deo Sai lauded this transformative endeavour, describing it as a pivotal step towards a cleaner environment and sustainable future. “Chhattisgarh has embarked on an ambitious journey to ensure environmental protection and carbon neutrality. 

This project not only aligns with the goals of cleanliness and sustainability but will also serve as a catalyst for job creation,” he remarked.

Share Price Performance 

At 12:39 PM today, Gail (India) Ltd. shares traded at ₹173.15 per share on the NSE.

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