Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, is preparing to make a major push toward renewable energy to meet the energy requirements of its manufacturing facilities. Chairman RC Bhargava has informed shareholders that the company will invest ₹561 crore to set up four biogas plants.
In Maruti Suzuki’s FY26 Annual Report, RC Bhargava stated that the board has approved the first phase of the project, involving an investment of ₹561 crore for four biogas plants. After gaining deeper understanding of the processes and technologies involved, the company plans to make significantly larger investments in biogas production and distribution.
Work Progressing Rapidly at Kharkhoda and Manesar Plants
Maruti Suzuki has taken concrete steps toward powering its manufacturing operations with green energy. Under the first phase, a 10-tonne-per-day (TPD) biogas plant will be established at the company’s Kharkhoda facility. The plant is expected to become operational in FY27 and, once it reaches full capacity, is expected to meet around 20% of the plant’s total gas requirement.
At its Manesar facility, Maruti Suzuki has increased its biogas capacity from 0.2 TPD to 0.7 TPD. This is expected to generate approximately 3.6 lakh standard cubic metres of biogas annually. The Manesar facility uses food waste, Napier grass and paddy straw, with provisions for using cattle dung as well.
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At the company’s Hansalpur plant in Gujarat, biogas has already started replacing natural gas, meeting around 10% of the facility’s energy requirements. The company aims to use more than 20 tonnes of biogas per day by FY31.
Biogas as an Alternative to CNG and a Vision to Increase Farmers’ Income
RC Bhargava has highlighted the broader benefits of biogas, stating that India will need to adopt multiple technologies to achieve its net-zero target.
Biogas can be produced on a large scale using locally available resources. It can serve as an alternative to imported CNG, offering a clean and renewable fuel option with zero import content.
The use of agricultural residues for biogas production can also help address the problem of stubble burning. This would contribute to cleaner air while preventing damage to soil microorganisms caused by burning crop residues. The by-product generated during biogas production can also improve soil fertility and agricultural productivity.
The sale of agricultural residues and cattle dung could provide an additional source of income for farmers and encourage greater mechanisation of agriculture. For this initiative, Maruti Suzuki has been working with the Indian Agricultural Research Institute (IARI), Pusa, for the past two years.
Government’s GOBARdhan Scheme to Provide a Major Boost
The Union Cabinet approved the GOBARdhan scheme on August 6 with a total outlay of ₹23,731 crore. The scheme will be implemented from FY27 to FY36, with the objective of making Compressed Biogas (CBG) a major component of India’s future energy mix.
The government expects the scheme to result in an approximately tenfold increase in domestic biogas production and encourage greater private investment in the sector.
Maruti Suzuki’s ₹561-crore investment therefore represents a significant corporate move in line with India’s broader push toward renewable energy, circular economy, agricultural waste utilisation and cleaner fuels.
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