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Biogas Plants in Urban Areas: Andhra Pradesh Government Sanctions ₹60 Crore

Biogas Plants in Urban Areas: Andhra Pradesh Government Sanctions ₹60 Crore

Panthagani Anusha
March 22, 2026

In a major step towards addressing the growing urban waste crisis , the Andhra Pradesh government has decided to establish Compressed Biogas (CBG) plants to convert municipal waste into valuable fuel. The government has issued orders sanctioning ₹59.85 crore for this project.

Under the initiative, four new biogas plants will be set up in Rajamahendravaram, Nellore, Guntur, and Ongole . Additionally, a previously established but currently non-operational plant in Vijayawada will be revived and upgraded with modern technology .

Although the project was initially planned under the Public-Private Partnership (PPP) model , the government has chosen to implement it directly due to a lack of response to tenders, prioritising public interest .

Each plant will have the capacity to process 25 tonnes of wet waste per day , with all five plants together converting 125 tonnes of waste daily into fuel. The CSIR–Indian Institute of Chemical Technology, Hyderabad , will serve as the technical advisor for the project.

Officials stated that these plants will significantly reduce the burden on landfill sites and help curb pollution caused by open dumping and burning of waste. The initiative is expected to promote the concept of “waste to wealth” , making cities cleaner while also benefiting the environment.

The Municipal Administration Department aims to commence works soon and complete the projects within the stipulated timeline to make them operational for public use.

Biogas Plants in Urban Areas: Andhra Pradesh Government Sanctions ₹60 Crore - The Morning Voice