Palanpur: Banas Dairy has announced plans to establish a new bio-CNG plant at Dhanpur in Banaskantha district, Gujarat, further expanding its renewable energy initiatives and creating additional income opportunities for dairy farmers.
The announcement was made during the foundation stone laying ceremony of the project on Saturday. The cooperative will invest between ₹40 crore and ₹50 crore in setting up the facility.
According to Shankar Chaudhary, Chairman of Banas Dairy and Speaker of the Gujarat Legislative Assembly, the proposed plant will convert cattle dung into bio-compressed natural gas (bio-CNG), enabling livestock owners to earn additional income from dung collection alongside their regular milk sales.
The Dhanpur project will become Banas Dairy’s fourth bio-CNG plant, reinforcing the cooperative’s strategy of integrating sustainable agriculture practices with rural economic development. The existing bio-CNG plants within the cooperative’s network have demonstrated the potential of converting dairy waste into valuable renewable energy products while supporting farmers’ livelihoods.
Banas Dairy stated that the new facility is expected to particularly benefit dairy farmers and cattle rearers in the Radhanpur region by creating a supplementary revenue stream and strengthening the local dairy ecosystem.
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The initiative aligns with the growing focus within India’s dairy sector on circular economy models, where livestock waste is utilised for the production of renewable energy and organic by-products. Bio-CNG projects not only contribute to cleaner energy generation but also improve resource efficiency and enhance the economic sustainability of dairy farming.
By investing in bio-energy infrastructure, Banas Dairy continues to diversify farmer income sources beyond milk production while advancing its commitment to sustainable and cooperative-led rural development.
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