Banas Dairy is boosting its daily cattle-dung processing capacity from 340 tonnes to 515 tonnes by launching new bio-CNG plants in Gujarat. This initiative offers farmers a secondary income stream and provides a cheaper alternative to conventional fuel. The expansion is part of a larger India-Japan partnership aimed at building 1,000 biogas plants nationwide to support sustainable rural energy.
Banas Dairy is significantly expanding its footprint in the bioenergy sector with a 51% increase in its cattle-dung processing capacity. The cooperative is scaling up from a daily capacity of 340 tonnes to 515 tonnes through the commissioning of new bio-compressed natural gas (bio-CNG) facilities in Tharad and Radhanpur in Gujarat's Banaskantha district. This expansion is a key step in integrating waste management directly into the regional dairy supply chain, effectively turning rural agricultural waste into a productive energy source.
The economics of this model are designed to provide farmers with a secondary revenue stream. The organization procures manure from local farmers at a rate of ₹1 per kilogram. To simplify the financial process, these payments are distributed alongside regular milk bill payments. The bio-CNG produced from this waste is marketed to motorists at ₹75–80 per kilogram, which provides a notable price advantage over traditional CNG that currently retails for approximately ₹92 per kilogram in the state. This price difference is a critical driver for adoption among local vehicle owners.
Looking ahead, the cooperative has outlined a broader strategic goal to establish a network of approximately 200 plants to handle a massive daily output of 24,000 tonnes of cattle dung in the district. This ambition is part of a larger India-Japan collaborative effort that aims to develop 1,000 biogas plants nationwide. In addition to fuel, the plants produce organic fertilizers, which are sold under the 'Bhoomi Amrut' brand, creating another layer of value for the cooperative. If the network is fully optimized, government projections indicate it could generate annual returns of ₹875 crore for local livestock breeders.
From a business perspective, this expansion highlights the potential for circular economy models in rural India. However, the path to reaching the goal of 200 plants involves significant execution challenges. Success will rely on maintaining a stable supply chain for dung collection, managing the logistics of waste transportation, and ensuring that the bio-CNG remains price-competitive against alternative fuels. The project's future will depend on whether the cooperative can efficiently scale its infrastructure without facing cost overruns or operational bottlenecks. Stakeholders will be tracking the pace of new plant commissioning, the adoption rates of the bio-CNG, and the long-term sustainability of the payment model for farmers.