India’s First Cooperative Multi-Feed Compressed Biogas (CBG) Plant: A Step Towards Sustainable Rural Economy

Context and Inauguration

• On 6 October 2025, Union Home Minister and Minister of Cooperation Shri Amit Shah inaugurated India’s first cooperative multi-feed CBG plant at Maharshi Shankarrao Kolhe Sahakari Sakhar Karkhana, Kopargaon, Ahilyanagar district, Maharashtra.

• The event was attended by Maharashtra Chief Minister Shri Devendra Fadnavis, Deputy Chief Ministers Shri Eknath Shinde and Shri Ajit Pawar, and Union Minister of State for Cooperation Shri Murlidhar Mohol.

• This marks a historic milestone for India’s cooperative sugar sector, integrating renewable energy, circular economy, and rural empowerment.

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Key Features of the CBG Plant

• Investment: ~₹55 crore

• Production:

  • Compressed Biogas (CBG): 12 tons daily

  • Potash Granules: 75 tons daily (from jaggery/molasses)

• Significance:

  • Reduces dependence on imports of CBG and potash

  • Demonstrates circular economy practices within sugar mills

  • Enhances energy security and sustainable agriculture

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Government Initiatives and Policy Support

1. Support for Cooperative Sugar Mills:

   • PM Modi’s government will provide assistance to 15 selected sugar mills to set up CBG and potash plants through the National Cooperative Development Corporation (NCDC).

2. Farmers’ Welfare & MSP:

   • Launch of ‘Mission for Aatmanirbharta in Pulses’ with a ₹11,340 crore investment over six years.

   • MSP procurement at 100% for pulses (arhar, urad, masoor) via NAFED and NCCF, benefiting 20 million farmers.

   • Increase in MSP for crops like masoor, mustard, gram, barley, wheat; doubling of MSP for jowar, bajra, tur, moong, soybean, and cotton over 11 years.

3. GST Reforms for Agriculture:

   • Reduced GST (5%) on tractors, harvesters, drip irrigation, poultry & beekeeping machinery, organic pesticides, enhancing farmers’ profitability.

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Sustainable Development and Circular Economy

• The Kopargaon CBG plant is an example of 100% circular economy in sugar mills, integrating energy, fertilizer, and organic by-product production.

• Encourages multi-dimensional ethanol plants, fruit processing units, and value addition for farmers, thereby increasing sugar mill profitability.

• Promotes green energy, women’s self-help groups, fisheries, education (Sanjeevani University), and rural employment (rural call centers).

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Strategic and Economic Significance

1. Renewable Energy:

   • Promotes sustainable energy production (CBG as an alternative to fossil fuels).

2. Import Substitution:

   • Reduces dependence on imported CBG and potash.

3. Rural Economic Empowerment:

   • Strengthens cooperative sector, integrates PACS, and provides livelihood opportunities.

4. Atmanirbhar Bharat:

   • Promotes indigenous production of energy and fertilizer, aligning with PM Modi’s vision of self-reliant India.

5. Environmental Goals:

   • Supports climate action and afforestation initiatives, with PM Modi urging tree planting campaigns.

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Alignment with UPSC Syllabus

Syllabus Area	Relevance from Event
GS Paper 2 – Governance	Cooperative sector development, role of Ministry of Cooperation, NCDC assistance, farmer welfare programs, MSP and procurement policies
GS Paper 3 – Economy	Agro-based industrial growth, import substitution, rural employment, circular economy, MSME and cooperative linkages
GS Paper 3 – Agriculture & Food Security	Pulses mission, MSP reforms, farmer income enhancement, NAFED/NCCF participation
GS Paper 3 – Environment & Energy	Renewable energy (CBG), sustainable sugar mills, circular economy, climate action (tree plantation pledge)
Sustainable Development / SDGs	SDG 2 (Zero Hunger), SDG 7 (Affordable & Clean Energy), SDG 8 (Decent Work), SDG 12 (Responsible Consumption & Production), SDG 13 (Climate Action)

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Conclusion

The Kopargaon cooperative CBG plant exemplifies the integration of technology, renewable energy, circular economy, and cooperative governance. It is a model for sugar mills across India, promoting farmers’ welfare, import substitution, environmental sustainability, and Atmanirbhar Bharat. The initiative demonstrates how cooperatives can drive rural economic development, sustainable agriculture, and clean energy simultaneously, aligning with India’s long-term developmental, economic, and environmental goals.