Chhattisgarh Approves CG-CBG Policy 2026 to Boost Compressed Biogas Production, Green Energy and Rural Income

In a significant move towards promoting clean energy, sustainable agriculture and rural prosperity, the Government of Chhattisgarh has approved the Chhattisgarh Compressed Biogas (CG-CBG) Policy 2026, aimed at encouraging the production of compressed biogas (CBG) from agricultural residue, cattle dung and other organic waste resources.

The policy was approved during a meeting of the State Cabinet chaired by Chief Minister Shri Vishnu Deo Sai on June 23, 2026. It is expected to pave the way for large-scale investments in the bio-energy sector while strengthening the state’s commitment to environmental sustainability and energy security.

The CG-CBG Policy 2026 seeks to promote the scientific utilization of agricultural residue, animal waste, municipal organic waste and other biodegradable materials for the production of compressed biogas, a clean and eco-friendly fuel. The initiative is designed to support the circular economy, reduce environmental pollution and create new avenues of income generation in rural areas.

Speaking on the occasion, Chief Minister Vishnu Deo Sai said the policy would open up fresh opportunities for farmers, cattle rearers and rural entrepreneurs across the state.

“The CG-CBG Policy 2026 will create new opportunities for farmers, cattle rearers and the rural economy of Chhattisgarh. Better utilization of agricultural residue and organic waste will help increase farmers’ incomes while generating employment and entrepreneurship opportunities in rural areas,” he said.

The Chief Minister further emphasized that the policy would help position Chhattisgarh among the leading states in clean energy production, green industrial development and sustainable growth.

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

According to government estimates, Chhattisgarh has the potential to produce nearly five lakh tonnes of compressed biogas annually through the effective utilization of available biomass and organic waste resources. The policy is expected to unlock substantial opportunities in the bio-energy sector while promoting environmentally responsible industrial development.

A key feature of the policy is its direct benefit to farmers, who will gain an additional source of income by selling crop residue and agricultural waste that often remains unused. The establishment and operation of CBG plants are also expected to create significant employment opportunities in rural areas and encourage local entrepreneurship.

The initiative is expected to address long-standing challenges related to agricultural residue management and organic waste disposal. By converting waste into valuable energy resources, the policy will contribute to cleaner surroundings and reduce dependence on conventional fossil fuels.

The CG-CBG Policy 2026 is aligned with the Government of India’s Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, which promotes compressed biogas as a clean transportation fuel. Through this policy, Chhattisgarh aims to contribute meaningfully to national renewable energy targets and climate action commitments.

To attract investment, the policy offers a range of incentives and facilitation measures, including capital assistance, interest subsidies, infrastructure support and assistance in obtaining necessary approvals. These provisions are expected to create a conducive environment for investors and developers interested in establishing compressed biogas projects in the state.

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

With the launch of the CG-CBG Policy 2026, the state government expects to accelerate the development of a robust bio-energy ecosystem, generate sustainable livelihoods in rural areas and strengthen Chhattisgarh’s position as a leader in green energy, organic agriculture and sustainable industrial growth.

The policy marks a major milestone in Chhattisgarh’s transition towards a cleaner, greener and more self-reliant economy, while simultaneously creating economic opportunities for farmers and rural communities.