Punjab CM Bhagwant Mann lays foundation of ₹65-crore CBG plant in Ludhiana
Synopsis
Punjab's ₹65-crore CBG plant at Ludhiana's Haibowal Dairy Complex isn't just an energy project — it's a triple play: cutting Budha Nallah pollution, turning cattle dung into daily income for 435 dairy owners, and producing five tons of biogas a day. With HPCL as partner and a September 2027 deadline, this is the Bhagwant Mann government's most concrete environmental bet yet.
Key Takeaways
Punjab CM Bhagwant Mann laid the foundation stone of a ₹65-crore CBG plant at Haibowal Dairy Complex , Ludhiana, on 14 August 2025 .
The plant will process 300 tons of cattle dung daily, preventing untreated waste from entering the Budha Nallah .
It will produce approximately 5 tons of compressed biogas and organic bio-fertiliser every day once operational.
Around 435 dairy owners will directly benefit under the state's 'Waste-to-Wealth' mission.
The project, developed on 2.5 acres in partnership with HPCL , is scheduled to become operational by September 2027 .
Punjab Chief Minister Bhagwant Mann on 14 August 2025 laid the foundation stone of a ₹65-crore compressed bio-gas (CBG) plant at Haibowal Dairy Complex in Ludhiana, marking a significant step under the state's Budha Darya Rejuvenation Programme. The facility, being developed on 2.5 acres, is designed to scientifically process 300 tons of cattle dung generated daily at the complex, addressing both pollution and waste management concerns.
What the Plant Will Produce
Once operational, the plant will generate approximately five tons of compressed biogas and a quantity of organic bio-fertiliser every day. The bio-fertiliser output is expected to reduce farmers' dependence on chemical fertilisers, improve soil fertility, and support a shift toward organic farming in the region. The project is scheduled to become operational by September 2027.
Economic Benefits for Dairy Owners
Around 435 dairy owners at the Haibowal complex stand to directly benefit from the initiative under the state's 'Waste-to-Wealth' mission. By converting cattle dung — previously an untreated pollutant — into marketable biogas and fertiliser, the project creates new income streams for dairy farmers who have historically had limited options for waste disposal. The plant is also expected to generate direct and indirect employment opportunities for local youth.
Tackling the Budha Nallah Pollution Crisis
The Budha Nallah, a seasonal stream running through Ludhiana, has long been identified as one of Punjab's most polluted urban waterways, burdened by industrial effluents and untreated organic waste. By intercepting 300 tons of daily cattle dung before it enters the nallah, the CBG plant is positioned as a critical intervention in the broader rejuvenation effort. This comes amid sustained pressure on the state government to demonstrate measurable progress on the Budha Nallah cleanup, which has been the subject of National Green Tribunal scrutiny.
What the Chief Minister Said
Addressing the gathering after the foundation-stone ceremony, CM Mann said: 'Today is a historic day as the foundation stone of the compressed biogas plant is being laid here. I thank the officials of HPCL (Hindustan Petroleum Corporation Ltd) for playing an important role in the execution of this project. This initiative will prove to be a historic milestone under the Budha Darya Rejuvenation Programme.'
Mann further stated: 'This is not merely a gas plant; it is a testimony to our commitment to making Punjab pollution-free, greener and economically stronger.' He added that the Aam Aadmi Party (AAP) government had provided the 2.5-acre land for the project and that Hindustan Petroleum Corporation Ltd (HPCL) has played a key role in its execution.
Key Project Details at a Glance
The plant is being developed in partnership with HPCL, aligning with the Centre's push for city gas distribution and green energy. Notably, this is among the larger CBG investments in Punjab's dairy belt, where cattle density is among the highest in India. With the project expected to go live in September 2027, the state government's ability to maintain the construction timeline will be closely watched by environmental groups and dairy stakeholders alike.
Point of View
Two themes the AAP government in Punjab has leaned on heavily. But the real test is execution: Punjab has a history of infrastructure announcements that slip timelines, and the Budha Nallah has been the subject of NGT proceedings for years with limited on-ground progress. Whether HPCL's involvement provides the institutional backbone to deliver by September 2027 — or whether this becomes another foundation stone without a building — will define whether the 'Waste-to-Wealth' framing holds up.
NationPress
14 Aug 2026
Frequently Asked Questions
What is the ₹65-crore CBG plant inaugurated in Ludhiana?
It is a compressed bio-gas plant being built at the Haibowal Dairy Complex in Ludhiana at a cost of ₹65 crore, in partnership with HPCL. The plant will process 300 tons of cattle dung daily to produce five tons of biogas and organic bio-fertiliser, and is expected to be operational by September 2027.
How will the plant help clean up the Budha Nallah?
The plant will intercept 300 tons of cattle dung generated daily at the Haibowal Dairy Complex before it enters the Budha Nallah as untreated waste. By scientifically processing this dung, the project aims to reduce water pollution and improve the environment around the nallah, which is a key goal of the Budha Darya Rejuvenation Programme.
Who benefits from the Haibowal biogas project?
Around 435 dairy owners at the Haibowal Dairy Complex are expected to directly benefit by gaining new income from cattle dung under the state's 'Waste-to-Wealth' mission. The project will also create direct and indirect employment for local youth.
When will the Ludhiana CBG plant become operational?
The plant is scheduled to become operational by September 2027. It is being developed on 2.5 acres of land provided by the Punjab government.
What role does HPCL play in this project?
Hindustan Petroleum Corporation Ltd (HPCL) is a key execution partner in the Haibowal CBG plant. Chief Minister Bhagwant Mann specifically acknowledged HPCL's role in facilitating the project during the foundation-stone ceremony.
