Have you ever thought about turning waste into something useful — like energy? That’s what a biogas plant does! It takes food waste, animal dung, or crop waste and turns it into gas for cooking or electricity.

In this blog, we’ll learn how to start a biogas plant business in India, what licenses are needed, and how it can help both the planet and your pocket.

We’ll also see how it connects to other environmental laws like The Indian Forest Act, 1927 and The National Green Tribunal Act, 2010.

Let’s begin! 

What is a Biogas Plant?

A biogas plant is a setup where waste materials like cow dung, kitchen waste, or agricultural leftovers are collected in a closed tank. Inside that tank, tiny living organisms (called bacteria) break down the waste and release biogas — a clean fuel that can be used for:

• Cooking food
  
  

• Lighting homes
  
  

• Producing electricity
  
  

• Running vehicles (in some cases)
  
  

The leftover waste from this process is called slurry, and it can be used as organic fertilizer for farms. 

So, in short — nothing goes to waste!

Why Start a Biogas Plant Business?

India produces millions of tons of organic waste every day — from farms, homes, and factories. Most of it is thrown away, causing pollution. But with a biogas plant, this waste can be turned into useful energy and income.

Here are some amazing reasons to start a biogas plant business:

1. Eco-friendly – It reduces pollution and saves nature.
   
   

2. Low cost fuel – You can make your own fuel from waste.
   
   

3. Government support – There are subsidies and financial help available.
   
   

4. Job creation – You can create employment for local people.
   
   

5. Good business opportunity – Demand for clean energy is growing every year.
   
   

Starting a biogas plant business is not only good for the environment — it’s also a smart business choice.

Step-by-Step Process to Set Up a Biogas Plant Business

Let’s go through the simple steps to start your biogas plant in India.

Step 1: Research and Planning

Before anything else, understand your area and the type of waste available.
Ask questions like:

• Is there enough cow dung or food waste nearby?
  
  

• Are there farmers who can use the fertilizer?
  
  

• How big should your plant be?
  
  

You can also take help from experts or environmental consultants like Enterclimate who guide new businesses in this field.

Step 2: Choose a Suitable Location

Pick a place that is:

• Away from homes but close to waste sources.
  
  

• Has good road access.
  
  

• Has enough land for expansion.
  
  

Make sure your land follows environmental and zoning rules of your state.

Step 3: Get Required Licenses and Permissions

To run a biogas plant business, you need to follow government laws and get proper certificates. Here are the main ones:

1. Pollution Control NOC (CTE & CTO)

You must get a Consent to Establish (CTE) and Consent to Operate (CTO) from your State Pollution Control Board.
For example:

• In Rajasthan: RSPCB
  
  

• In Gujarat: GPCB
  
  

• In Kerala: KSPCB
  
  

These ensure your plant won’t harm the environment.

2. Factory or Trade License

You need a trade license from the local municipal body or panchayat to start your unit.

3. Land Documents & Local NOC

If you’re setting up on agricultural or industrial land, you need permission from local authorities.

4. Fire Safety NOC

Since biogas is flammable, get a Fire NOC from the fire department for safety.

5. Environmental Clearance

If your plant is large, you may need an Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change (MoEFCC).

Step 4: Build the Biogas Plant

There are different types of biogas plants:

• Fixed Dome Type
  
  

• Floating Drum Type
  
  

• Balloon or Bag Type
  
  

Choose one depending on your budget and size. Hire a professional team to build and install the plant.

Step 5: Start Operations

Once your plant is ready, you can begin collecting waste daily and feeding it into the digester.
The biogas produced can be:

• Used directly for cooking, or
  
  

• Stored in gas cylinders for sale, or
  
  

• Converted to electricity.
  
  

The leftover slurry can be dried and sold as bio-fertilizer to farmers.

Licenses and Laws Related to Biogas Business

While setting up a biogas plant business, it’s important to know about a few key laws that protect our environment.

1. The Indian Forest Act, 1927 

This law helps protect forests and natural resources.
If your plant is near a forest area, you must ensure it doesn’t harm forest land or wildlife. You might need permission from the Forest Department before using nearby land.

2. The National Green Tribunal Act, 2010

The National Green Tribunal (NGT) looks after cases related to environmental protection.
If any industry pollutes air, water, or soil, NGT can take action.
So, while running your biogas business, always follow eco-friendly rules to avoid any penalties.

Government Schemes and Benefits

The Indian government encourages people to set up biogas plants because it supports clean energy and Swachh Bharat Mission.
Some schemes include:

• National Biogas and Organic Manure Programme (NBOMP) – Provides financial help to small and medium biogas plants.
  
  

• MNRE Subsidy – The Ministry of New and Renewable Energy offers subsidies based on plant size.
  
  

• Startup India Benefits – If you register your company as a startup, you can get tax benefits and funding support.
  
  

You can also connect your project to carbon credit programs, which give you extra income for reducing greenhouse gas emissions.

Difference Between Biogas and Biodiesel

Many people confuse biogas with biodiesel, but they are not the same.

So, if you plan to set up a biodiesel plant business, it will have a different process and license requirements than a biogas plant business.

Benefits of Starting a Biogas Plant Business

Here’s why this business is so good:

1. Saves the planet – Less pollution and better waste management.
   
   

2. Low running cost – Waste is cheap and easily available.
   
   

3. Government support – Many schemes offer financial help.
   
   

4. Sustainable future – It’s a renewable source of energy.
   
   

5. Earn multiple incomes – From biogas and fertilizer sales.
   
   

It’s truly a “green gold” business — good for you and for the Earth.

FAQs: Biogas Plant Business in India

Q1. How much does it cost to set up a small biogas plant in India?
A: A small household plant may cost ₹50,000–₹1 lakh. A commercial biogas plant can cost between ₹10–₹50 lakh, depending on size and location.

Q2. How long does it take to build a biogas plant?
A: Small plants can be ready in a few weeks, while large ones may take 3–6 months.

Q3. Is a license required for a biogas plant?
A: Yes, you need pollution control certificates, fire NOC, and local permissions before starting.

Q4. What raw materials are used in biogas plants?
A: Cow dung, food waste, crop residue, and other biodegradable materials.

Q5. Can biogas be used in vehicles?
A: Yes, after purification, biogas can be converted to Bio-CNG, which is used in vehicles.

Author Profile

Author: Upendra | Environmental Business Consultant
Upendra is an environmental enthusiast and writer at Enterclimate, a consultancy that helps entrepreneurs set up green businesses like biogas plants, biodiesel units, and waste management projects. He believes in creating a cleaner, greener, and more sustainable India.

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