Salem Municipal Corporation awards ₹65.07 crore contract for bio-CNG plant

Team Finance Saathi

    02/Apr/2025

What's covered under the Article:

  • Salem Municipal Corporation grants a ₹65.07 crore contract for a bio-CNG plant.

  • The project will be executed under PPP mode for 20 years on a DBFOT basis.

  • The plant will process 200 TPD of municipal solid waste into clean biofuel.

The Salem Municipal Corporation has taken a significant step toward sustainable waste management by awarding a ₹65.07 crore contract for the establishment of a 200 TPD (tonnes per day) bio-CNG plant. The project is part of Swachh Bharat Mission Urban 2.0 and aims to convert municipal solid waste into bio-CNG for cleaner energy production.

Project Scope and Execution

The contract involves:

  • Setting up a 200 TPD bio-CNG plant in Salem, Tamil Nadu.

  • Execution under the PPP mode, ensuring private sector participation.

  • A 20-year contract on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis.

  • Scheduled commissioning within 19 months from the signing of the concession agreement.

Sustainable Impact on Salem’s Waste Management

The bio-CNG plant will:

  • Reduce landfill waste and enhance waste processing efficiency.

  • Convert organic waste into bio-CNG, promoting renewable energy.

  • Lower greenhouse gas emissions, contributing to a cleaner environment.

Transparent Contract Awarding Process

  • The project is awarded by a domestic, state-owned entity.

  • There is no promoter or related party involvement, ensuring transparency.

  • The funding and execution follow strict government regulations under Swachh Bharat Mission guidelines.

Role of Public-Private Partnership (PPP)

Executing the project under PPP mode will:

  • Ensure efficient and cost-effective operations.

  • Bring in advanced technology and expertise from private players.

  • Enable long-term sustainability and maintenance of the bio-CNG plant.

Conclusion

The Salem bio-CNG plant is a landmark initiative in India's waste-to-energy movement. By converting municipal solid waste into clean fuel, the project will enhance waste management efficiency, reduce environmental pollution, and promote green energy. The ₹65.07 crore investment under PPP mode will help Salem become a model city for sustainable urban development.

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