Mumbai: Mahanagar Gas signs MoU with BMC to set up Rs 500 crore biogas plant

City gas distributor Mahanagar Gas  signed a memorandum of understanding with the Brihanmumbai Municipal Corporation (BMC)  to set up 1,000 tonnes per day (TPD) compressed biogas (CBG) plant in the megapolis at an investment of around Rs 500 crore.

The proposed plant will process up to 1,000 TPD of deep segregated food and vegetable waste that will be supplied by the civic body, the utility company, which is a subsidiary of gas major Gail, a statement said. The waste, also known as CBG feedstock, will be collected from hotels, restaurants, banquet halls, and large vegetable markets/mandis in the city. The feedstock supply will be managed by BMC and will include collection, segregation and delivery.

The plant on completion will provide a three-in-one solution, functioning as a biomass waste treatment plant, an organic fertiliser production plant and a green fuel production unit. The compressed biogas produced by the plant will be consumed within the city, it said without disclosing how much will be the energy generation.

This is just the first step towards moving to cleaner energy sources and will be critical for improving the quality of life through greener methods. Involving school students is the best way ahead, by instilling in them the value of sustainability from an early age, said Deepak Kesarkar, guardian minister of Mumbai.

Joining him, Mangal Prabhat Lodha, the guardian minister of Mumbai suburban district said this plant benefits both BMC and MGL since it not only reduces waste and helps enhance people's quality of life, but also serves as a clean source of energy generation.

MGL chairman Mahesh Iyer said the signing of the MoU for the plant is the result of nearly six months of effort. The plant that will be built in Mumbai and get us closer to attaining the petroleum ministry's objective of establishing 5,000 CBG plants in the country while also managing cities' daily waste. It can also help us become less reliant on imported gas, which forms almost half of the country's gas consumption, he added.