MCD, Oil India Sign MoU to Develop ₹400 Crore CBG Plants in Delhi's Tehkhand and Okhla

Environment Aug 01,2026

The Municipal Corporation of Delhi (MCD) has signed a memorandum of understanding with Oil India Limited (OIL) to establish two Bio-Methanation-based Compressed Bio-Gas (CBG) plants in Delhi. The agreement was signed in the presence of Delhi Chief Minister Rekha Gupta and Mayor Pravesh Wahi.

Oil India will invest around ₹400 crore in the project, while MCD will provide the required land. In the first phase, the facilities will process a combined 800 tonnes per day (TPD) of wet waste. The project comprises a 500 TPD Bio-CBG plant on an anticipated 10 acres at Tehkhand and a 300 TPD facility on 7 acres at Okhla.

Both plants will scientifically process segregated organic waste into compressed bio-gas and organic fertiliser. Oil India will undertake construction and operation of both facilities and will distribute the generated CBG through its pipeline network. According to MCD officials, the agreement replaces an earlier proposal that had involved Infrastructure Leasing & Financial Services (IL&FS) for a 300 TPD CBG plant at the Okhla landfill site.

The Delhi CBG plants are expected to strengthen the city's waste processing infrastructure and improve management of wet waste, while supporting clean energy generation by converting organic waste into compressed bio-gas. The project is also intended to reduce dependence on landfill disposal while producing organic fertiliser for agricultural use.

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