§1What this business is
Crop waste and cow dung are crushed, mixed into slurry and fed to a digester; the biogas is cooled, stripped of hydrogen sulphide, compressed and purified in a three-stage membrane system into Bio-CNG (92–98% methane), which is compressed into cylinders or cascades. The digested slurry is a manure by-product.
Capacity: Rated output not printed for this cost; the report plans 55% use in year 1 rising to 75% in year 5 (year-1 sales ₹68.97 L).
§2Is it right for you?
Who it is for
A dairy, gaushala or farmer group with steady dung and crop waste, and technical support.
Who it is not for
Someone without a feedstock source or engineering help.
Advantages
- Turns dung and crop waste into fuel and manure
- Government promotes compressed biogas for vehicles and industry
- Two products: gas and organic manure
- Feedstock is available in dairy and farm areas
Drawbacks
- Power bill is very high in the report
- Feedstock collection is hard work and seasonal
- Gas safety and explosives rules apply
- Actual plant costs are often far above this sample
Skills you need
- Digester operation
- Gas purification and compression safety
- Feedstock contracts
- Selling gas and manure
Why difficulty 5/5: Technical plant, explosives licensing and feedstock logistics.
§3Market
Who buys
- CNG vehicle fuel stations
- Industries using gas
- Farmers buying the slurry manure
How it sells
- Supply to oil-company or city-gas outlets
- Cylinder/cascade sale to industry
- Manure sale to farmers
Good to know
- The report says Bio-CNG can be sold in cylinders or cascades, or filled directly into pressure vessels.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Organic waste crusher | 1 | — |
| Biogas plant (slurry tank, digester, gas dome or holder) | 1 | — |
| Gas cooling (chiller) system | 1 | — |
| Hydrogen sulphide scrubber | 1 | — |
| Compressor | 1 | — |
| Three-stage membrane purification system | 1 | — |
| High-pressure compressor | 1 | — |
| Total plant & machinery | — | ₹12.50 lakh |
From: PMEGP sample project report — Bio Cng (prepared by Udyami/Samadhan)
- Crop wastecrushed before digestion
- Cow dungfrom dairy farms and farmer groups
- Scrubber media (mostly caustic solution) and membranesconsumables for purification
From: PMEGP sample project report — Bio Cng (prepared by Udyami/Samadhan)
§5Licences & registration
- Factory licence
- Udyam
- Fire and pollution control board NOC
- PESO (Petroleum and Explosives Safety Organisation) licence for gas storage and filling
- Labour registration (PF and ESI)
§6Schemes & subsidies
The report is a PMEGP sample; CGTMSE can back the loan. Check central and state compressed-biogas programmes for further support.
§7Money
How the investment is worked out: Samadhan sample report: machinery ₹12.50 L, other assets ₹1.00 L, furniture ₹0.50 L, working capital ₹7.79 L = ₹21.79 L.
Working capital: Working capital ₹7.79 L, of which a bank loan of ₹7.01 L.
Year not printed on the report. Commercial Bio-CNG plants usually cost far more than this sample shows — get supplier quotes before relying on it.
§8Export potential
Export council / board: Not applicable
- Bio-CNG is sold in the local fuel market; it is not an export product.
§9Risks — where people fail
- Feedstock shortage
- Gas leaks and fire
- High power cost
- Weak offtake price for gas
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working bio-cng (compressed biogas) plant unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Factory licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Bio-CNG (Compressed Biogas) Plant?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.