Eye on 800 TPD waste management, MCD signs deal with Oil India to set up CBG plants

New DelhiJul 31, 2026 01:15 AM IST According to MCD sources, an agreement with Infrastructure Leasing & Financial Services (IL&FS) to operate a 300 TDP CBG plant at Okhla landfill site was called off before the deal with OIL was signed. To convert 800 tonnes per day (TPD) of wet waste into biogas and organic fertilizers, the Municipal Corporation Delhi (MCD) and the Oil India Limited (OIL) on Thursday signed a memorandum of understanding (MoU) in the presence of the Delhi CM Rekha Gupta and Mayor Pravesh Wahi for the establishment of two Bio-Methanation based Compressed Bio-Gas (CBG) plants, officials said. According to an official statement, two Bio-CBG plants with a combined processing capacity of 800 TPD will be established in the first phase. A 500 TPD plant will be developed on 10 acres of land at Tehkhand, while a 300 TPD plant will be set up on 7 acres at Okhla, an official said. These facilities will scientifically process segregated organic waste to produce CBG and organic fertilizer, contributing to cleaner and more sustainable waste management, the official added.Speaking at the occasion, Gupta said, “Delhi, being the national capital, represents the aspirations of the entire country, and therefore addressing its civic challenges requires coordinated efforts by the Central Government, the Delhi Government, local bodies, public sector enterprises, the private sector and civil society.” She added, “Delhi generates nearly 13,500 metric tonnes of solid waste every day, while the existing processing capacity remains inadequate, leading to the accumulation of landfill mountains over the years. The two CBG plants with a combined capacity of 800 TPD will provide a sustainable solution by converting wet waste into biogas and organic fertilizer, benefiting the environment, promoting clean energy, and supporting the agricultural sector.” Speaking to media persons, Wahi said “ Not a single rupee will be spent by the MCD. The cost of around 400 crores and operation of the plants will be borne by OIL and MCD will provide land for the plant site.” He said that the CBG produced will be distributed through pipelines by OIL. According to MCD sources, an agreement with Infrastructure Leasing & Financial Services (IL&FS) to operate a 300 TDP CBG plant at Okhla landfill site was called off before the deal with OIL was signed. Earlier this month, MCD had also signed an MoU with the National Dairy Development Board (NDDB) aimed at preventing cattle dung from entering the Yamuna and turning it into a resource that can generate compressed biogas plants (CBG) and support organic farming. The agreement was signed in the presence of MCD Commissioner Sanjeev Khirwar, Oil India Chairman & MD Dr Ranjit Rath and senior officials from the MCD and OIL.