Farmers in six Indian states will soon earn money by selling cow dung. The National Dairy Development Board (NDDB) will buy cow dung for ₹1 per kilogram. This cow dung will be used to power compressed biogas plants. This is part of a bigger plan by India and Japan to increase clean energy production.
The NDDB is setting up 15 biogas plants in states like Gujarat, Rajasthan, Odisha, Goa, and Bihar. They are creating systems to collect animal waste from farmers for these plants. Clean energy is a very important area where India and Japan are working together. Recently, during a visit to Tokyo, Japanese companies promised to invest around $68 billion in India. This money will go into areas like new energy sources, transport, computer chips, and artificial intelligence.
Suzuki Motor Corporation is partnering with the NDDB to build many biogas plants. These plants will use animal waste to create compressed biogas. Biogas is a natural fuel made from the breakdown of animal waste without air. Suzuki’s R&D centre in India is investing in NDDB Mirda Ltd., a company owned by NDDB. This investment will help build biogas plants that run on cow dung. Suzuki plans to initially buy 26% of the shares in NDDB Mirda, with a chance to increase it to 49% later.
These 15 plants managed by NDDB will need about 1,500 tonnes of cow dung every day. At ₹1 per kg, this means farmers will receive ₹15 lakh daily for their cow dung. This adds up to nearly ₹55 crore a year. Besides the NDDB, other companies, both government-owned and private, plan to invest over ₹1,400 crore in bio-energy plants. These plants will use farm waste and leftover crops.
In 2018, the Indian government aimed to build 5,000 biogas plants by 2024. The goal was to produce 54 million cubic meters of gas daily, which is almost half of India’s total gas needs. However, with only 114 plants currently operating, this target has not yet been met.
Japan’s Sojitz Corporation is also involved. They are working with Indian Oil to invest $395 million. This investment will help set up 30 biogas plants that use farm waste as their main material. Sojitz has invested in a new company called IOC GPS Renewables Pvt. Ltd. (IGRPL). This company was created by GPS Renewables Pvt Ltd and IOL Ltd, a large government-owned oil company.
A spokesperson for the company said, “Farmers will provide crop leftovers and farm waste for the plants. They will be paid good prices through contracts.” IGRPL plans to have 30 biomethane plants working in India by 2026-27 through this project.
Experts believe that using farm waste, like leftover stalks from crops, to produce biogas can help India solve its air pollution problems. It can also reduce the need to import fuels. In the financial year 2025, India spent $13.3 billion on importing liquefied natural gas, according to data from the petroleum ministry.