Chandigarh: A first, Rs 125-cr compressed biogas plant to come up at Dadumajra

Chandigarh is all set to get its first compressed biogas (CBG) plant, with the municipal corporation (MC) and Indian Oil Corporation Limited (IOCL) joining hands to set up a Rs125-crore facility at the Dadumajra dumping ground.

The plant will be developed on 10 acres and is expected to be commissioned by December 31, 2028, around two years after the actual start of construction. Under the arrangement, the MC will lease 10 acres to the IOCL for at least 15 years at a nominal rate of Rs 1 per acre per month. The civic body will not invest any funds in the project or its operation and maintenance. The IOCL will design, construct, finance, operate and maintain the plant entirely on its own without charging the MC.

The process to install the plant will formally begin on Monday when UT Administrator Gulab Chand Kataria hands over the land to the IOCL. Mayor Harpreet Kaur Babla described the project as a gamechanger for the city, particularly for Dadumajra and surrounding areas. She said the plant would process 200 tonnes per day (TPD) of segregated organic municipal solid waste and 30 TPD of cow dung to produce compressed biogas along with byproducts such as fermented organic manure and liquid fermented organic manure.

MC Commissioner Amit Kumar said a memorandum of understanding had been signed between the MC and the IOCL to set up the plant under the design-build-finance-operate model. “The MC’s role is to provide land and ensure a daily supply of segregated organic waste and cow dung. The IOCL will handle everything else, including design, construction, financing, operation and maintenance,” he said.

As per the MoU, a copy of which is with The Tribune, the MC will supply 200 TPD of segregated organic waste free of cost, while the collection, handling and transportation of cow dung will be paid for by the IOCL. The company will also install a leachate treatment plant, ensure environmental compliance, obtain all statutory permissions and share relevant operational data with the MC.

The detailed project report is currently under preparation and the project will be executed based on site feasibility. The plant will also have provisions for future expansion if waste quantities increase, with the MC agreeing to provide additional adjoining land if required.

A mandatory green belt covering 33% of the project area will be developed as per Central Pollution Control Board norms. While the MC will carry out plantation work, the IOCL will bear the cost of development and maintenance.