Mukesh Ambani’s Reliance Industries is set to make a significant investment in bio-CNG production in Madhya Pradesh, constructing 10 Compressed Bio Gas (CBG) plants across the state. Currently, five plants are rapidly being built in Bhopal, Indore, Jabalpur, Satna, and Balaghat, with operations expected to begin between December 2025 and March 2026. Each plant will employ 120-150 people. Reliance plans large-scale investments This move comes after the Madhya Pradesh government approved the Bio Fuel Policy-2025 on February 19, offering various concessions to bio-fuel projects. Reliance plans large-scale investments in this sector over the next five years, with a potential major announcement at the Global Investors Summit in Bhopal (February 24-25, 2025). What is Bio-CNG and how is it produced? Bio-CNG is produced by processing crop waste, cow dung, food waste, and sewage in an oxygen-free tank, where bacteria break down organic matter to release biogas. This biogas, containing 50-60% methane, is purified to 95% methane and compressed into cylinders. Reliance’s plants will use paddy straw, soybean waste, Napier grass, industrial waste, and solid urban waste. Napier grass will be cultivated on barren land near the plants, which will also be converted into biomass fuel. Each plant will produce 20 tons of CNG daily, requiring 7 to 10 times more raw material. The leftover by-product will serve as organic fertilizer, enhancing soil fertility. Reliance’s investment plans in MP At Reliance’s AGM in August 2024, Ambani highlighted India’s 230 million tons of non-cattle feed biomass, most of which is burned, contributing to severe air pollution. Reliance has already commissioned its first large-scale CBG plant in Barabanki, Uttar Pradesh, and announced plans to set up 100 CBG plants nationwide, including 10 in Madhya Pradesh. Reliance has invested ₹35,000 crore in MP over the past 10 years, generating 16,500 direct jobs and over 18,000 indirect employment opportunities. Why Reliance chose Madhya Pradesh? 1. High stubble burning incidents Between September 15 and November 30, 2024, Madhya Pradesh recorded 16,360 cases of paddy stubble burning, the highest in India. This accounted for 44% of total stubble-burning cases across six states, according to a Down To Earth report. Reliance identified this as an opportunity to use stubble as raw material while reducing air pollution. Punjab, previously infamous for stubble burning, had only 10,909 fire incidents in 2024. In contrast, six out of the ten worst-affected districts were in MP, with Sheopur recording 2,508 cases. Other heavily affected districts included Hoshangabad, Datia, Guna, Ashok Nagar, Raisen, and Jabalpur. 2. Government incentives Madhya Pradesh government has introduced multiple financial benefits for bio-fuel units under its Bio Fuel Policy-2025: Uses and benefits of Bio-CNG Bio-CNG is a sustainable fuel alternative for various industries, including: Studies suggest that CBG plants help meet energy demands, manage waste efficiently, and reduce greenhouse gas emissions. By investing in bio-fuel projects, Reliance aims to reduce environmental pollution while strengthening India’s renewable energy sector.