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BMC and Oil India Limited Join Hands to Establish
State-of-the-Art Waste-to-Energy Facility at Meherpalli
Commercial Production of Compressed Bio-Gas Targeted by April 2027
Bhubaneswar, June 20, 2026 (Odisha Samachar/ Rajat Mohapatra): In a major boost to sustainable urban infrastructure and public service delivery in Odisha, the Hon’ble Prime Minister of India, Shri Narendra Modi, today virtually laid the foundation stone for a 300 TPD Compressed Bio-Gas (CBG) Plant at Meherpalli in Bhubaneswar. The Prime Minister also inagurated two important drinking water supply projects under the Housing & Urban Development Department—improvement of water supply to Chatrapur NAC at a cost of ₹16.40 crore and improvement of water supply infrastructure in Digapahandi NAC at a cost of ₹10.16 crore, including construction of an intake well and laying of Rising Water Raw Main (RWRM). These projects are expected to significantly strengthen urban water supply services and improve access to safe and reliable drinking water for residents of both NACs.
The CBG project marks another significant milestone in Bhubaneswar Municipal Corporation’s (BMC) efforts to transform municipal waste into valuable resources through scientific waste management practices while advancing Odisha’s commitment to clean energy, resource recovery, and circular economy principles.
The project is being implemented through a strategic partnership between Bhubaneswar Municipal Corporation (BMC) and Oil India Limited (OIL). Once operational, the facility will process a substantial portion of the city’s wet waste and convert it into clean and renewable Compressed Bio-Gas, significantly reducing dependence on conventional waste disposal systems and strengthening Bhubaneswar’s integrated solid waste management framework.
BMC had signed a Memorandum of Understanding (MoU) with Oil India Limited on 16 December 2024 for the establishment of the Bio-Methanation (Compressed Bio-Gas) Plant at Meherpalli. The project is being developed at an estimated cost of ₹175 crore by Oil India Limited.
Under the agreement, BMC has provided nearly 10 acres of land at Meherpalli and will ensure the supply of approximately 200 metric tonnes of segregated wet waste per day as feedstock for the plant. The facility has been designed with provisions for future expansion up to 300 TPD. Oil India Limited will be responsible for the operation andmaintenance of the plant, ensuring efficient and professional management.
The plant will utilize advanced anaerobic digestion technology to scientifically process wet municipal waste and is expected to generate approximately 10–14 tonnes of Compressed Bio-Gas per day. The CBG produced will serve as a clean and renewable fuel, contributing to India’s energy transition goals. In addition, the facility will produce nutrient-rich organic manure and liquid bio-fertilizers that can be utilized in agriculture, thereby promoting circular economy principles and supporting sustainable farming practices.
The project aligns with the objectives of the Swachh Bharat Mission and the Solid Waste Management Rules by ensuring scientific processing of municipal waste and reducing reliance on landfill-based disposal. Once operational, a majority of the wet waste currently transported to Transfer Stations (TTS) will be directly routed to the CBG plant for processing.
Besides enhancing waste management efficiency, the project is expected to significantly reduce greenhouse gas emissions by preventing open dumping and replacing fossil fuels with renewable bio-gas. The use of organic manure and liquid fertilizers generated from the facility will further reduce dependence on chemical fertilizers and contribute to improved soil health.
To ensure environmental sustainability, the plant has been designed with an in-built Effluent Treatment Plant (ETP) and other pollution-control measures for the proper treatment of leachate and process residues. These provisions will help maintain environmentally compliant and sustainable operations.
The project is also expected to generate substantial employment opportunities. More than 60 direct jobs will be created in plant operations, maintenance, and administration, while numerous indirect employment opportunities will emerge in waste collection, segregation, transportation, and allied services.
The establishment of the CBG plant represents a major step towards realizing the vision of “Waste to Wealth” by converting municipal wet waste into clean energy and value-added products. It will strengthen Bhubaneswar’s position as a leading city in sustainable urban waste management and environmental stewardship.
Speaking on the occasion, dignitaries lauded the collaborative initiative of BMC and Oil India Limited in advancing sustainable urban development and renewable energy generation. Officials of Oil India Limited informed that the project is targeted for completion by April 2027.
The foundation stone was laid virtually by the Hon’ble Prime Minister from Rairangpur, Odisha. A special programme was organized at the project site in Meherpalli and attended by Bhubaneswar MP Smt. Aparajita Sarangi, Mayor Smt. Sulochana Das, Additional Chief Secretary, Housing & Urban Development Department, Government of Odisha, Smt. Usha Padhee, Deputy Mayor Smt. Manjulata Kahar, BMC Commissioner Shri Chanchal Rana, Standing Committee Chairman (Sanitation & Health) Shri Biranchi Narayan Mahasupakar, Chairman and Managing Director of Oil India Limited Dr. Ranjit Rath, along with corporators, standing committee chairpersons, senior officials of BMC, and representatives of Oil India Limited.
