In the Banaskantha district of Gujarat, a tripartite partnership between Banas Dairy, the National Dairy Development Board (NDDB), and Suzuki Motor Corporation (SRDI) has transformed cattle waste into a high-tech revenue stream. The facility at Bhukhala serves as a blueprint for a circular economy, turning daily dung collection into fuel for hundreds of vehicles.

The Production Cycle: 100 Tonnes of Dung to Biomethane
The plant processes approximately 100 tonnes of cow dung daily, sourced from around 500 dairy farmers across 35 collectives.
- Digestion: The dung is mixed with water and fermented in large tanks for approximately one month.
- Methane Capture: This process produces 1.5 to 1.8 tonnes of raw biogas daily.
- Purification: Since raw gas is only 45% methane and contains corrosive hydrogen sulphide ($H_2S$), it is purified to over 95% biomethane.
- Distribution: The fuel is sold as Bio-CNG at a dedicated dispensing station. It is priced at ₹75/kg, roughly ₹5–8 cheaper than regular natural gas in Gujarat.
Revenue Model: Beyond Just Gas
Interestingly, while the Bio-CNG is the most visible product, it is not the primary revenue driver. 80% of the plant’s revenue comes from byproducts:
- Organic Fertilizer: The “digested” dung is separated into solids and mixed with phosphates to create a high-quality organic fertilizer.
- Enriched Slurry Water: The liquid waste is sold back to farmers as nutrient-rich water for their fields.
- Farmer Payouts: Farmers receive ₹1 per kilogram for dung, which can translate to an additional annual income of approximately ₹72,000 for an average household.
Read More: Nestle India Shares Hit Record High Following Blockbuster Q4FY26 Earnings
Carbon Credits and Environmental Impact
The project is a significant tool for Suzuki Motor Corporation to achieve its goal of global net-zero emissions by 2050.
- Emission Reductions: Each 100-tonne plant is estimated to reduce carbon emissions by approximately 6,750 tonnes annually.
- Methane Mitigation: By capturing methane—a greenhouse gas significantly more potent than $CO_2$—from open waste, the plant prevents it from entering the atmosphere.
- Carbon Neutral Fuel: Biogas is considered a carbon-neutral fuel source, allowing Maruti Suzuki (which holds a 70% share of India’s CNG car market) to offer a truly “green” mobility solution.

The Road Ahead
Suzuki and Banas Dairy have signed agreements to establish a total of five plants in the Banaskantha district by late 2025/2026. Furthermore, Suzuki has invested in NDDB Mrida Ltd, a joint venture aimed at scaling this “dung-to-fuel” model across other states in India, aiming to turn rural waste management into a sustainable national industry.
Join Our “Dairy & Food Jobs Updates” WhatsApp group
Follow the Agri Jobs Updates channel on WhatsApp:
Disclaimer
I do my best to share reliable and well-researched insights but occasional errors or omissions may slip through. Please view all content as informational.
Stay informed on all the latest news updates
All Agriculture Books Free Download
All Dairy Technology Books Free Download
All Agricultural Engineering Books Free download
All Horticulture Books Free Download
All Fisheries Science Books Free Download
For Daily Update follow us at:
Facebook Telegram Whatsapp Instagram YouTube
The contents are provided free for noncommercial purpose such as teaching, training, research, extension and self learning.
If you are facing any Problem than fill form Contact Us
If you want share any article related Agriculture with us than send at info@agrimoon.com with your contact detail.


