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Chandigarh's Municipal Corporation and Indian Oil Corporation Limited will set up a Rs 125-crore compressed biogas plant at Dadumajra. The facility, covering 10 acres, will process 200 tonnes of municipal solid waste and 30 tonnes of cow dung daily, expected to be operational by December 31, 2028.

The MC will lease the land to IOCL for 15 years at Rs 1 per acre per month and supply organic waste free of cost. The project aims to reduce landfill pressure and greenhouse gas emissions, with a green belt covering 33% of the area. A memorandum of understanding was signed on November 20, 2025, and the land handover ceremony is scheduled for January 19.