NEW DELHI: An MoU was signed on Wednesday between BPCL, Chhattisgarh Biofuel Development Authority and municipal corporations of Raipur and Bhilai for the production of Compressed Bio Gas (CBG) in Chhattisgarh, officials said.

As per the pact, BPCL- a central PSU, will set up CBG plants in Raipur and Bhilai with an investment of around Rs 100 crore and the capacity of each plant will be 100-150 tonne per day.

The MoU was signed in the presence of Chief Minister Vishnu Deo Sai and Deputy CM Arun Sao here at the former's official residence, they said.

In his address, Chief Minister Sai said the establishment of CBG plants is a key step towards clean city, clean energy and zero carbon emissions.

About 200-250 metric tonne of municipal solid waste will be used every day in the production of biofuel in the two CBG plants. BPCL will invest approximately Rs 100 crore for setting up the two plants, Sai said.

The setting up of these plants will create about 60,000 man days of employment directly and indirectly every year.

On production and sale at full capacity in these plants, the state will receive GST to the tune of Rs 45 lakh per year, he said.

These plants will also yield organic fertilizer as a by-product which will help in organic farming in the state, he added.

The MoU was signed by Chief Executive Officer of Chhattisgarh Biofuel Development Authority Sumit Sarkar, Chief General Manager of BPCL, Mumbai Anurag Saravagi, Commissioner of Raipur Municipal Corporation Avinash Mishra and Commissioner of Bhilai Municipal Corporation Devesh Kumar Dhruv, officials said.