§1What this business is

Food waste from agro-industry and municipal bodies is crushed, mixed with cow dung and water into slurry, and pumped into a digester. The gas is drawn off and either filled into cylinders, piped to customers or used to make electricity. The spent slurry is sold as manure — in the report it earns more than the gas in year 1.

Capacity: 1,500 kg of waste a day; 300 cubic metres of gas and 375 units of power a day; 1,50,000 units a year at full capacity (8 hours, 300 days).

§2Is it right for you?

Who it is for

Someone near dairy farms, gaushalas or food-processing units with a sure supply of waste.

Who it is not for

Someone far from a steady waste source or without buyers for manure.

Advantages

  • Raw material is waste and costs little
  • Two incomes: gas or power, and slurry manure
  • Helps local waste management
  • Simple process once the digester is running

Drawbacks

  • Thin cover for the loan (DSCR 1.87)
  • Needs a steady daily supply of dung and food waste
  • Gas sale price is low (₹10–14 per unit in the report)
  • Gas filling needs PESO approval

Skills you need

  • Digester operation and feed balance
  • Gas handling and safety
  • Tie-ups with dairies and municipal bodies
  • Selling organic manure to farmers

Why difficulty 3/5: Simple machinery, but steady waste supply and gas safety must be managed.

§3Market

Who buys

  • Households and eateries using gas for cooking
  • Local power users buying electricity
  • Farmers buying slurry as manure

How it sells

  • Gas in cylinders
  • Gas through a pipeline from a pressure vessel
  • Electricity from a gas engine
  • Direct sale of slurry

Good to know

  • In year 1 the report earns ₹15.75 lakh from slurry and ₹9.98 lakh from gas/power.
  • The report prices power at ₹10 a unit in year 1 rising to ₹14 in year 5, and slurry at ₹5–6 per kg.

§4Raw material & machinery

ItemQtyCost
Biogas plant (digester)1₹10,00,000
FRP tank, 5 m × 5 m1₹1,15,000
Slurry storage tank, 5 m × 5 m1₹1,15,000
Sludge pump for feeding waste1₹95,000
Crusher machine, 5 HP1₹3,25,000
Excavation1₹50,000

From: PMEGP sample project report — Biogas Unit (prepared by Udyami/Samadhan)

  • Cow dungfrom dairy farms and farmer groups
  • Food, crop and agro-industry wastefrom agro-industry and municipal bodies; ₹3–5 per kg assumed
  • Municipal and forest wastelisted as other feedstock

From: PMEGP sample project report — Biogas Unit (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam registration
  2. GST
  3. Fire and pollution licences as required
  4. PESO licence
  5. Trademark for the brand (if needed)

We can do this registration for you

§6Schemes & subsidies

The report is a PMEGP sample. MUDRA and CGTMSE can back the loan.

§7Money

How the investment is worked out: Plant & machinery ₹17.00 lakh + furniture ₹0.50 lakh + working capital ₹2.78 lakh = ₹20.28 lakh. Land own or rented (not in the cost).

Working capital: Working capital ₹2.78 lakh, of which a bank loan of ₹2.50 lakh. Waste is cheap (₹3–5 per kg assumed).

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Biogas and electricity are sold locally; this is not an export business.

§9Risks — where people fail

  • Feedstock supply breaking
  • Gas leaks and fire
  • Slurry not finding buyers
  • Digester upset lowering gas output

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working biogas plant unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Biogas Plant?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Biogas Unit (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.