Salem Municipal Corporation awards ₹65.07 crore contract for bio-CNG plant
Team Finance Saathi
02/Apr/2025

What's covered under the Article:
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Salem Municipal Corporation grants a ₹65.07 crore contract for a bio-CNG plant.
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The project will be executed under PPP mode for 20 years on a DBFOT basis.
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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:
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Setting up a 200 TPD bio-CNG plant in Salem, Tamil Nadu.
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Execution under the PPP mode, ensuring private sector participation.
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A 20-year contract on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis.
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Scheduled commissioning within 19 months from the signing of the concession agreement.
Sustainable Impact on Salem’s Waste Management
The bio-CNG plant will:
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Reduce landfill waste and enhance waste processing efficiency.
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Convert organic waste into bio-CNG, promoting renewable energy.
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Lower greenhouse gas emissions, contributing to a cleaner environment.
Transparent Contract Awarding Process
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The project is awarded by a domestic, state-owned entity.
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There is no promoter or related party involvement, ensuring transparency.
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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:
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Ensure efficient and cost-effective operations.
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Bring in advanced technology and expertise from private players.
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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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