In a landmark step for India’s cooperative sector and green energy transition, Union Home Minister and Minister of Cooperation Amit Shah inaugurated India’s first cooperative multi-feed Compressed Biogas (CBG) plant at Kopargaon in Maharashtra. This initiative marks a historic milestone in India’s cooperative sugar sector.
The event in early October 2025 saw the presence of Maharashtra Chief Minister Devendra Fadnavis, Deputy Chief Ministers Eknath Shinde and Ajit Pawar, and Union Minister of State for Cooperation Murlidhar Mohol.
A Model for Sustainable Sugar Production
Located at the Sahakar Maharshi Shankarrao Kolhe Cooperative Sugar Factory, the facility integrates energy, fertilizer, and agricultural waste utilization under a cooperative framework.
Project Highlights
- Investment: ₹55 crore
- Daily CBG Production: 12 tons
- Daily Potash Granules Production: 75 tons
By producing both CBG and potash domestically, the project aims to reduce import dependence and strengthen India’s self-reliance. Amit Shah highlighted that the plant exemplifies a circular economy in action.
What is Compressed Biogas (CBG)?
CBG is a renewable fuel produced from biomass and organic waste—like sugarcane press mud, cattle dung, agricultural residue, and sewage—through anaerobic decomposition.
It shares similar properties with Compressed Natural Gas (CNG) and can replace CNG in automotive, industrial, and commercial sectors.
| Feature | CBG (Compressed Biogas) | CNG (Compressed Natural Gas) |
|---|---|---|
| Source | Biomass & organic waste | Fossil fuels |
| Environmental Impact | Eco-friendly, supports circular economy, reduces air pollution | Fossil fuel-based, contributes to greenhouse gas emissions |
| Import Dependence | Produced domestically | India imported 50.8% of CNG in FY25 |
Expanding the Cooperative Vision
The government plans to replicate this model in 15 other cooperative sugar mills, supported financially by the National Cooperative Development Corporation (NCDC). Amit Shah urged sugar mills to diversify into ethanol production and fruit processing, emphasizing integrated value addition for higher farmer profitability.
This initiative aligns with India’s SATAT Scheme, targeting CBG production from 62 million metric tonnes of waste, which helps reduce oil imports and increase natural gas share from 6% to 15% by 2030. It also supports India’s net zero emissions target by 2070.
Empowering the Rural Economy
The cooperative model ensures farmers and local stakeholders benefit directly, boosting rural incomes through biomass supply. The Sanjeevani Group, managing the Kopargaon mill, has implemented initiatives like:
- Linking 100 Primary Agricultural Credit Societies (PACS)
- Supporting fisheries for 1,000 farmers
- Launching Sanjeevani University for 20,000 rural students
- Establishing India’s first rural call center
Centre’s Commitment to Farmer Welfare
Amit Shah also highlighted pro-farmer initiatives:
Mission for Aatmanirbharta in Pulses
- Total Investment: ₹11,340 crore over six years
- Procurement at 100% MSP for registered farmers
- Establishing 1,000 processing units
- Distributing 3.8 million high-quality seed kits
- Benefiting 20 million farmers
MSP Hikes & GST Relief
- Masoor: ₹300/qtl | Mustard: ₹250/qtl | Gram: ₹225/qtl | Barley: ₹175/qtl | Wheat: ₹160/qtl
- GST 2.0 reduced tax to 5% on key agricultural inputs like tractors, irrigation systems, organic pesticides, and poultry machinery
Looking Ahead: Swadeshi & Sustainability
Shah emphasized swadeshi and self-reliant production as India aims to move to the top of the global economy. He also urged citizens to plant a tree for their mother and one for Mother Earth.
The Kopargaon CBG plant stands as a replicable benchmark, combining renewable energy, cooperative entrepreneurship, and local innovation to transform India’s rural economy.