Chandigarh: In a major step toward sustainable waste management, the Chandigarh municipal corporation is set to nominate Indian Oil Corporation Limited (IOCL) to establish the city's first segregated organic municipal solid waste-based compressed biogas (CBG) plant. This initiative is aligned with the Government of India's SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, which mandates oil marketing companies to support the development of CBG plants across the country.
Under this framework, IOCL has been designated as the implementing agency for Chandigarh. The proposal will be presented for discussion and approval during the upcoming monthly general house meeting of the MC, scheduled for Tuesday. If approved, the project will be developed at the Daddumajra garbage dumping site, marking a significant milestone in the city's efforts to reduce landfill dependency and promote clean energy.
According to the agenda, IOCL will invest in both capital expenditure (CAPEX) and operational expenditure (OPEX) for the plant. This includes the construction of infrastructure, installation of utilities, and ongoing operational costs.
The plant will process segregated organic municipal solid waste—primarily wet waste—and cow dung to produce CBG and other useful by-products. This will not only support sustainable waste disposal but also contribute to the city's environmental and energy goals. The agenda notes that IOCL will have the flexibility to expand the plant's processing capacity by installing additional bio-digesters during the concession period, depending on the volume of waste generated.
The general house will also deliberate on the draft memorandum of understanding (MoU) submitted by IOCL. Approval will be sought to authorise the MC commissioner to finalise and execute the MoU and concession agreement under the SBM 2.0 and SATAT frameworks.
The commissioner will also be empowered to make minor modifications to the agreement, if necessary, in the interest of the corporation.
Key responsibilities of IOCL
As the implementing agency, IOCL will be responsible for:
Designing, financing, constructing, operating, and maintaining the CBG plant and its associated infrastructure
Bearing all consultation charges related to design and execution
Procuring necessary permits and approvals for plant operations and the sale of CBG and by-products
Arranging offtake agreements and managing the transportation of CBG and other by-products
Ensuring compliance with environmental, safety, and performance standards
Entering into a lease agreement for the land, with all associated charges borne by IOCL
Responsibilities of MC, Chandigarh
The Municipal Corporation will play a crucial role in facilitating the project by:
Entering into a 15-year concession agreement with IOCL, extendable with mutual consent
Providing an uninterrupted supply of approximately 200 tonnes per day (TPD) of segregated organic municipal solid waste and 30 TPD of cow dung free of cost to the plant site
Bearing transportation cost of cow dung at mutually agreed rates
Leasing identified land at a nominal rate of Rs 1 per acre
Facilitating access to essential utilities such as water and electricity, and infrastructure like roads and pipelines, with costs borne by IOCL
Promoting community awareness for source segregation of waste and ensuring a dedicated supply from bulk organic waste generators such as hotels, mandis, and canteens
Assisting in obtaining statutory approvals and linkages
Applying for capital subsidies or Viability Gap Funding (VGF) from relevant authorities and passing the full benefit to IOCL
Joint responsibilities
Both IOCL and MCC will coordinate to ensure timely execution and commissioning of the project. Additionally, they will collaborate to develop a green cover over three acres in the vicinity of the project site. The expenditure for this initiative will be borne by IOCL at mutually agreed rates.
