Maharashtra Chief Minister Devendra Fadnavis has announced plans to establish India’s first integrated compressed biogas (CBG) processing plant in Kolhapur district, using waste generated by sugar mills, including spent wash and press mud. The proposed project will follow a “zero-waste” model and is aimed at helping sugar mills generate additional revenue from their by-products while strengthening their financial sustainability.
Speaking at a farmers’ gathering in Kagal, Fadnavis said the integrated CBG project would produce compressed biogas and CNG from sugar industry waste. He said the additional income generated from these products could improve the financial position of sugar mills and strengthen their ability to make Fair and Remunerative Price (FRP) payments to sugarcane farmers.
Fadnavis stressed that the sugar industry needs to diversify beyond conventional sugar production and make more efficient use of its by-products to remain financially viable. According to him, converting sugar mill waste into value-added products such as CBG and CNG can create new revenue opportunities for mills while promoting a circular economy in the sugar sector.
The Maharashtra Chief Minister also defended the government’s ethanol blending policy, saying ethanol has become important for the long-term sustainability of the sugar industry and the interests of sugarcane farmers. He said it would be difficult for the sugar sector to remain sustainable without ethanol and noted that the policy has supported sugar mills and helped them meet FRP obligations.
Addressing concerns circulating on social media about ethanol-blended petrol allegedly damaging vehicles, Fadnavis said petroleum companies and automobile manufacturers had not received official evidence supporting such claims. He maintained that the ethanol blending programme has played an important role in supporting the sugar industry and improving the financial stability of sugar mills.
Deputy Chief Minister Sunetra Pawar, Medical Education Minister Hasan Mushrif, Guardian Minister Prakash Abitkar and MP Shahu Maharaj were also present at the farmers’ meeting.
The proposed Kolhapur CBG plant is expected to provide sugar mills with a new avenue to monetise waste generated during sugar and ethanol production. By converting press mud, spent wash and other biomass into CBG and CNG, the project could create additional revenue streams for mills, support waste management and contribute to the growth of Maharashtra’s bioenergy sector.
