In a major step towards sustainable urban development and energy generation, Madurai City Municipal Corporation has awarded a significant contract under the Swachh Bharat Mission Urban 2.0 (SBM (U) 2.0) for the establishment of a 250 TPD municipal solid waste-based Bio-CNG plant. This contract has been granted to RGPL (Ramky Group or its affiliate) on a Public-Private Partnership (PPP) model, adopting the Design, Build, Finance, Operate and Transfer (DBFOT) approach.

The project will be developed at Avaniyapuram village in Madurai South Taluk, Tamil Nadu, with a contract period of 20 years, showcasing the state government's thrust on clean energy and solid waste management.

Project Background and Award Details

The order has been conferred by the Madurai City Municipal Corporation, a domestic, state-owned entity, and is set to address two major urban challenges:

• Solid waste disposal

• Renewable energy generation

Under this contract, the concessionaire is tasked to design, finance, build, operate, and transfer the project infrastructure after the operational term. This is a classic DBFOT model, ensuring private sector efficiency while retaining public sector oversight.

The Scheduled Commissioning Date (SCD) of the full-capacity Bio-CNG plant is 19 months from the date of signing the Concession Agreement, which is expected to be executed within 30 days of the issuance of the Letter of Award (LoA).

Technical and Operational Highlights

• Plant Capacity: 250 tonnes per day (TPD) of municipal solid waste processing.

• Technology: Bio-CNG conversion, which is an eco-friendly alternative to traditional fossil fuels.

• Mode of Execution: PPP model under DBFOT basis, aligned with urban governance best practices.

• Estimated Project Cost: ₹78.54 Crore, to be borne and managed primarily by the private partner (RGPL).

• Duration: The operational tenure of the project is 20 years, post which the asset will be transferred to the government.

Alignment with National Missions

This initiative is in line with the Government of India’s Swachh Bharat Mission (Urban) 2.0, which aims to:

• Ensure scientific processing of municipal solid waste.

• Minimize the amount of untreated waste sent to landfills.

• Convert waste into economically valuable outputs such as biofuels.

• Promote private sector participation in sustainable infrastructure.

Role of RGPL and Sustainability Vision

RGPL, known for its experience in waste management and renewable energy, will be responsible for:

• End-to-end development of the plant.

• Operational management for the entire concession period.

• Ensuring compliance with environmental norms and data transparency.

The project will directly contribute to:

• Cleaner cities

• Reduced GHG emissions

• Increased availability of Bio-CNG as a fuel alternative

It also encourages cities to leverage waste as a valuable resource through circular economy principles.

Why This Project Matters

This project will be a model case for replication across urban India, particularly in Tier 2 cities, offering:

• Job creation during construction and operation phases.

• Reduction in urban pollution levels.

• Energy diversification, lessening dependency on LPG and petrol/diesel.

The Madurai initiative also reflects a growing trend of cities adopting cleaner technologies, especially where land and waste challenges are pronounced.

Financial and Legal Clarity

• The ₹78.54 crore project cost does not involve any direct financial interest from the promoters or promoter group in the contract-awarding authority.

• This is not a related party transaction.

• All terms are structured at arm’s length under fair, competitive bidding mechanisms.

Conclusion

This Bio-CNG project in Madurai is a significant leap toward achieving India’s clean energy and sustainable urban development goals. It not only reflects the successful implementation of SBM Urban 2.0 but also opens up possibilities for more PPP-based waste-to-energy projects in the country.

As cities expand and waste volumes grow, such innovative public-private partnerships will be critical for maintaining ecological balance, reducing carbon footprints, and enhancing energy security.

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