Maharashtra has approved the Compressed Biogas Policy 2026 to promote renewable energy, scientific waste management, and district-level biogas infrastructure across the state.

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• Maharashtra approved the Compressed Biogas Policy 2026 on April 22, while the policy was officially released on May 5, 2026.
• The policy was cleared under Chief Minister Devendra Fadnavis and includes a financial allocation of ₹500 crore for the financial year 2026-27.
• Compressed biogas is produced from organic waste through anaerobic digestion and purification and is used as a clean transport and industrial fuel.
• Maharashtra generates nearly 24,500 metric tonnes of municipal solid waste daily along with over 20 million metric tonnes of agricultural residue annually.
• The policy aims to establish compressed biogas projects in every district through Public-Private Partnership and hybrid annuity implementation models.
• Every project under the policy must process at least 200 tonnes of segregated organic waste per day to ensure efficient waste-to-energy conversion.
• The government will provide Viability Gap Funding of up to ₹75 lakh per tonne of capacity with a maximum limit of ₹15 crore per project.
• Additional incentives include priority electricity and water supply along with a 2.5% State GST refund after production begins at biogas plants.
• Land allotted for projects will be cancelled if the compressed biogas unit does not become operational within two years of allocation.
• The policy aligns with national programmes such as SATAT, GOBARdhan, and the Swachh Bharat Mission focused on waste management and renewable energy generation.