India Inaugurates First Cooperative Biogas Plant, Launches Circular Economy Model for Sugar Sector
SDG 7: Affordable and Clean Energy | SDG 12: Responsible Consumption and Production
Institutions: Ministry of Cooperation
The Union Minister of Home Affairs and Cooperation, has inaugurated India’s first cooperative multi-feed Compressed Biogas (CBG) plant at Kopargaon, Maharashtra. Established at the Maharshi Shankarrao Kolhe Sahakari Sakhar Karkhana, this ₹55-crore project marks a national first for the cooperative sugar sector, integrating CBG production (12 tons/day) and potash granule manufacturing (75 tons/day) from jaggery and molasses. Both products are currently imported, and the initiative aims to reduce import dependency while promoting renewable energy and nutrient recycling. The plant represents India’s first step toward a 100 percent circular economy model for cooperative sugar factories.
The project anchors India’s Cooperative Green Energy Mission by turning sugar by-products into clean fuel and agri-inputs, demonstrating cooperative sector alignment with the National Bioenergy Programme and Atmanirbhar Bharat goals. The Ministry of Cooperation and NCDC will support 15 additional cooperative sugar mills to set up similar units, fostering local energy security and rural circular economies. By linking compressed biogas, ethanol, potash, and fruit-processing ventures, the initiative enhances diversification, profitability, and sustainability of sugar cooperatives—reviving a sector that originated in Maharashtra’s cooperative legacy.
What is Compressed Biogas (CBG)?
A purified form of biogas produced from agricultural residues, press mud, or organic waste, upgraded to match the properties of CNG. It offers a renewable, low-emission alternative for transport fuel and energy use in industries.
What is the Cooperative Sector?
A network of member-owned enterprises, from credit societies and dairy unions to sugar mills and housing cooperatives, formed on principles of voluntary membership, democratic control, and shared benefit. Emerging as a pillar of inclusive rural development, India’s cooperative sector spans over 8 lakh societies and 30 crore members, bridging state welfare and market enterprise. Landmark examples include Amul (dairy cooperatives of Gujarat), IFFCO (fertiliser cooperatives), KRIBHCO (rural infrastructure and fertilisers), and the sugar cooperatives of Maharashtra. With the creation of the Ministry of Cooperation (2021), the sector is being modernised through digital reforms and value-chain integration under the vision of “Sahakar se Samriddhi” (prosperity through cooperation).
What is a Circular Economy Model?
A circular economy model replaces the traditional “take–make–dispose” pattern with a system where resources are reused, recycled, and regenerated to minimise waste and environmental impact. In this approach, the output or by-product of one process becomes the input for another, creating a closed-loop system that conserves energy and materials.
Relevant Question for Policy Stakeholders:
How can India scale cooperative-led circular economy models like Kopargaon’s across the sugar, dairy, and agri-processing sectors to boost rural incomes and renewable energy capacity?
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