§1What this business is
Municipal solid waste is screened and sorted to remove glass, metal, stones and wet or toxic matter; the burnable part is crushed below 2 mm, blended with dry crop waste, coal fines, waste oil and binders (sodium silicate, molasses), pressed into briquettes, dried and in some plants carbonised. The product is refuse-derived fuel (RDF). Segregated glass and metal are sold as scrap. Buyers are cement and ceramic kilns, power plants, industrial boilers and restaurants; the plant usually works in partnership with the town's municipal body.
Capacity: About 30 tonnes of solid waste a day; the profile assumes 1 tonne of waste gives 550 kg of briquettes.
§2Is it right for you?
Who it is for
An experienced operator, NGO or cooperative with a municipal tie-up and a science or engineering background.
Who it is not for
A first-time founder without a waste-supply agreement or pollution-control know-how.
Advantages
- Solves a real town problem — garbage dumps
- Waste comes free, or the town may pay a disposal fee
- Cement plants and boilers buy RDF as a coal substitute
- Scrap glass and metal add income
Drawbacks
- Needs a contract with the municipal body
- Large investment (₹194.45 L) and many workers
- Mixed garbage is hard to sort and smells
- Pollution control for gas and dust is a must
Skills you need
- Waste segregation and handling
- Running crushers, mixers, presses and dryers
- Contracts with municipal bodies
- Selling to cement plants and boilers
Why difficulty 5/5: Large plant, municipal contracts, mixed garbage and strict pollution rules.
§3Market
Who buys
- Cement and ceramic kilns
- Power plants and industrial steam boilers
- Restaurants and rural households using pellet stoves
How it sells
- Bulk supply to industries and trading channels
- Scrap dealers for segregated glass and metal
Good to know
- The profile says raw garbage has a heat value of about 1,000 kcal/kg against about 4,000 kcal/kg for fuel pellets.
- Full-capacity sales in the profile are ₹291.60 L a year.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Waste removal and ferry trucks and excavator | 6 | ₹24,00,000 |
| Conveyors with sieves and manual and automatic segregation stations | 3 | ₹10,50,000 |
| Crushers and thrashers for size reduction | 4 | ₹10,00,000 |
| Blending and mixing machine for crushed waste | 2 | ₹10,00,000 |
| Briquette machine | 4 | ₹6,00,000 |
| Briquette drying oven with continuous conveyor | 2 | ₹24,00,000 |
| Pollution control system for waste gas and dust | 1 | ₹8,00,000 |
| Air handling and dust collection system | 1 | ₹6,50,000 |
| Air compressor system with piping | 2 | ₹3,00,000 |
| Water supply and sprayer unit | 1 | ₹3,00,000 |
| Fire safety system | 1 | ₹2,00,000 |
| Conveyors carrying glass and metal to dump bins | 3 | ₹4,50,000 |
| Workshop machines for maintenance | 1 | ₹3,00,000 |
| Bagging machine | 4 | ₹2,00,000 |
From: SIDBI Stand-Up Mitra project profile — Fuel Briquetting (Agri Waste & Municipal Solid Waste) (2018) — private guide — confirm locally
- Municipal solid wasteassumed free from the municipal body, which may also pay for disposal
- Agro-waste, coal fines and waste oilavailable at marginal cost; raise the fuel value
- Binders — sodium silicate, molasses, waste oilprepared in semi-liquid form before mixing
From: SIDBI Stand-Up Mitra project profile — Fuel Briquetting (Agri Waste & Municipal Solid Waste) (2018) — private guide — confirm locally
§5Licences & registration
- Udyam registration
- GST registration
- Authorisation and consent from the State Pollution Control Board under the Solid Waste Management Rules, 2016
- Factory plan approval and factory licence
- Fire safety clearance
- Agreement with the municipal body for waste supply
- PF and ESI registration
§6Schemes & subsidies
The ₹132.45 L loan is above the PMEGP, MUDRA and Stand-Up India limits; CGTMSE can cover a loan without collateral. Ask the municipal body about Swachh Bharat waste-processing support.
§7Money
How the investment is worked out: Land ₹20.00 L + building ₹25.00 L + plant & machinery ₹122.00 L + fixtures and electrical ₹4.60 L + preliminary/pre-operative ₹5.00 L + working-capital margin ₹17.85 L = ₹194.45 L. Promoter ₹62.00 L, loan ₹132.45 L.
Working capital: Working capital ₹34.36 L (stock ₹9.20 L, receivables ₹10.94 L, overheads ₹5.02 L); margin ₹17.85 L, bank ₹16.51 L.
Prices from 2018 — machinery and running costs will be higher now.
§8Export potential
The profile plans sales to nearby kilns, power plants and boilers; it does not plan exports.
§9Risks — where people fail
- Municipal contract delays or payment problems
- Poor-quality waste lowering fuel value
- Pollution-board action
- Worker health and fire hazards
§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 fuel briquettes from municipal solid waste (rdf) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), 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 Fuel Briquettes from Municipal Solid Waste (RDF)?
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.