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Gujarat Embarks on Biofuel Transformation with ₹3,300 Crore Investment Drive

In a transformative step towards sustainable energy and rural economic empowerment, the state of Gujarat has launched a massive biofuel development initiative. A total of 14 private and cooperative sector companies have committed ₹3,300 crore to establish ethanol and compressed biogas (CBG) production plants across various districts.

A standout project comes from Amul, which has begun pilot production of ethanol from whey a dairy byproduct paving the way for India’s first whey to ethanol plant with a planned investment of ₹70 crore. Simultaneously, district dairy unions under GCMMF are gearing up to install 30 CBG plants and over 32,500 household scale biogas units.

These initiatives aim to reduce dependence on fossil fuels, curb carbon emissions, and create new revenue opportunities for rural communities by converting agricultural residues and cattle dung into energy sources.

The Gujarat government has ensured policy support under the National Bio Energy Programme, including fast track clearances, land facilitation, and viability gap funding.

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