Indian Oil Corporation Limited (IOCL) has initiated soil testing at the Dadumajra dumpsite to establish a compressed biogas (CBG) plant with a daily capacity of approximately 230 tons. This testing is a crucial step in preparing the detailed feasibility report (DFR), which IOCL will submit to the Municipal Corporation (MC). Senior MC officials recently met with IOCL representatives and technical staff to discuss the project's specifics.
Project Details and Capacity Expansion
The DFR will cover construction, finances, infrastructure, design, and operational processes. During discussions, the MC requested IOCL to expand the plant's capacity to 250 tons per day. Sources indicate the project is expected to cost over Rs 100 crore, with IOCL bearing the expenditure and recovering it through CBG sales.
The MC has allocated 10 acres of land for the plant and reserved an additional 5 acres for future needs. The facility will also process 30 tons of cow dung daily. IOCL will operate and maintain the plant for 15 years, with a two-year construction period, totaling 17 years.
Waste Collection and Processing
Wet waste and cow dung will be collected and transported by the MC to the site for daily processing. Chandigarh generates about 200 tons of wet waste daily, and including dry and horticulture waste, the total is around 450–500 tons.
MoU and Project Model
On November 20, 2025, the MC signed a Memorandum of Understanding (MoU) with IOCL to establish the plant under the design-build-finance-operate model. The project includes 33% green belt development, adherence to CPCB norms, and acceptance of up to 10% mixed waste. Officials stated that the plant will enhance waste processing, reduce landfill emissions, and cut fossil fuel dependence.
Responsibilities of IOCL
- Design, finance, construct, operate, and maintain the plant.
- Procure permits and approvals.
- Arrange offtake agreements and transport of CBG.
- Ensure compliance with environmental and safety standards.
- Enter into a lease agreement and bear related charges.
Responsibilities of MC
- Provide 200 TPD segregated wet waste and 30 TPD cow dung free of cost.
- Lease land for 15 years at Rs 1 per acre.
- Facilitate utilities and infrastructure at IOCL's cost.
- Promote source segregation and ensure supply from bulk generators.
- Assist in statutory approvals and apply for subsidies.
Joint Roles
- Coordinate timely execution and commissioning.
- Develop over 3 acres of green cover near the site, funded by IOCL.
