Majour Push to Green Growth : Sai Cabinet Approves CG-CBG Policy 2026

Chhattisgarh Chief Minister Vishnu Deo Sai Chairs a Cabinet Meet on Tuesday June 23, 2026 at Mantralaya (Mahanadi Bhawan), Nava Raipur, approving several key policies for the state-Photo Credit -File Photo (CG/PR)

Key Factors

• Green energy to be produced from agricultural residues, cow dung, and organic waste; policy to boost farmers’ income and provide fresh impetus to investment

• Another significant step towards a developed Chhattisgarh under the leadership of Chief Minister Vishnu Deo Sai

Raipur: The Chhattisgarh Compressed Biogas (CG-CBG) Policy 2026 was approved on Tuesday June 23, 2026 during a Cabinet meeting chaired by Chief Minister Vishnu Deo Sai. This policy will prove to be a significant initiative, giving a new direction to clean energy, green industrialisation, the agriculture-based economy, and environmental conservation in the state.

Chhattisgarh Chief Minister Vishnu Deo Sai Chairs a Cabinet Meet on Tuesday June 23, 2026 at Mantralaya (Mahanadi Bhawan), Nava Raipur, approving several key policies for the state-Photo Credit -File Photo (CG/PR)

There is potential to produce approximately 1.65 lakh metric tonnes of Compressed Biogas (CBG) annually in Chhattisgarh using agricultural and crop residues, paddy straw, cattle dung, livestock waste, municipal solid waste, press mud, sugarcane residues, and energy crops like Napier grass. This will boost clean energy production in the state and reduce reliance on traditional fossil fuels.

Effective implementation of the new policy will enable the supply of CBG equivalent to approximately 2.16 lakh tonnes of petrol and diesel annually. This will not only save foreign exchange but also strengthen the country’s energy self-reliance.

Chief Minister Vishnu Deo Sai stated that this policy would bring new opportunities for Chhattisgarh’s farmers, cattle rearers, and the rural economy. Better utilisation of agricultural residues and organic waste will increase farmers’ supplementary income and create new avenues for employment and entrepreneurship in rural areas, he noted.

The use of organic manure—obtained as a co-product from CBG plants—will promote natural and organic farming. This will reduce dependence on chemical fertilisers, preserve soil fertility, and encourage sustainable agriculture.

The policy will also play a crucial role in steering the state towards green development and a climate-resilient economy. The use of CBG will reduce greenhouse gas emissions, enabling Chhattisgarh to contribute effectively towards the national goal of net-zero emissions.

The policy has been formulated in alignment with the Government of India’s SATAT (Sustainable Alternative Towards Affordable Transportation) initiative, which promotes sustainable and affordable transport. This initiative by Chhattisgarh will make a significant contribution to national efforts to promote clean energy.

The policy will also leverage the city gas distribution networks and gas infrastructure currently being developed in the state. This will foster a robust ecosystem for CBG production, distribution, and utilisation, while creating better opportunities for investors.

The Chhattisgarh Biofuel Development Authority (CBDA) has been actively working in the CBG sector since 2024. Currently, CBG plants are being established at eight locations—including Raipur, Durg-Bhilai, Bilaspur, Rajnandgaon, Dhamtari, Ambikapur, Raigarh, and Korba—with investments from BPCL and GAIL India Limited. The land allocation process for all these projects has been completed.

The private sector has also shown significant interest in the state’s CBG industry, with investment proposals totaling approximately ₹3,600 crore received.

The implementation of the new policy will further boost prospects for large-scale investment, employment generation, and industrial development in this sector.

The policy, approved by the Council of Ministers, rests on six key pillars: infrastructure support; strengthening the feedstock supply chain; support for plant establishment and operations; bio-fertilizer management and ancillary infrastructure development; CBG demand generation and integration into the transport sector; and investment promotion and industrial development.

The Chhattisgarh Biofuel Development Authority (CBDA) has been designated as the state’s nodal agency for the effective implementation of the policy.

Chief Minister Vishnu Deo Sai stated that this policy would prove to be a milestone in positioning Chhattisgarh among the country’s leading states in clean energy production, green industry, organic farming, and sustainable development. This initiative will infuse new energy into the resolve to build a developed Chhattisgarh, he remarked.