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KIS Group, Paras Dairy Ink INR 1,000 Cr MoU to Develop 10 BioCNG Plants in India

KIS Group and Paras Dairy have signed an MoU to jointly develop 10 BioCNG plants across Uttar Pradesh, Madhya Pradesh, Maharashtra and other states in India with an estimated investment of around INR 1,000 crore. The first plant is targeted to become operational by Q4 2027, with subsequent projects expected to be developed by 2029.

September 10, 2026. By Mrinmoy Dey

KIS Group and Paras Dairy have announced signing a Memorandum of Understanding (MoU) to jointly develop 10 BioCNG (CBG) plants across Uttar Pradesh, Madhya Pradesh, Maharashtra and other states in India, with an estimated investment of around INR 1,000 crore.

The complete project pipeline is expected to be developed by 2029. Under the partnership, KIS Group will be responsible for technology, construction and operation of the plants, while Paras Dairy will be responsible for feedstock arrangement, land and approvals, noted a joint statement by the two companies, further adding that they will also form a joint venture (JV) for the proposed BioCNG plants.

The MoU was signed at the IBET Expo in New Delhi in the presence of three ministers from Uttar Pradesh, including AK Sharma, Minister of Energy, UP; Kailash Singh Rajput, Minister of State, UP; and Surya Pratap Shahi, Minister for Agriculture, Education and Research, UP; along with Ravinder Singh IAS, Special Secretary, Energy/Additional Sources of Energy from the Government of Uttar Pradesh and Dr. Meenesh Shah, Chairman of the National Dairy Development Board (NDDB).

Farmers will participate in the projects as feedstock partners, supplying cattle dung and agricultural residues including paddy straw, wheat straw, maize waste and vegetable waste. Fermented Organic Manure (FOM) generated by the Biogas plants will, in turn, be supplied for use on farms and fields to enrich the soil. In addition to BioCNG, the plants will produce BioCO2 and solid /liquid FOM fertilisers as by-products, meeting the organic fertiliser needs of the country.

Announcing the initiative, KR Raghunath, Founder and CEO, KIS Group, said, “India generates an estimated 555 million tonnes of cattle dung alone; the raw material opportunity for BioCNG is even more significant if we account for agricultural and other organic waste. We have an opportunity to build this into a viable industry at scale. The next phase of BioCNG growth will depend on solving for feedstock aggregation and technology together. Our partnership with Paras Dairy brings these capabilities under one model, enabling us to work directly with dairy and farming networks, create economic value from agricultural waste and return organic manure to farms. We see this as a model that can be replicated across India.”

Vaibhav Nagar, Vice President, Paras Dairy, remarked, “Paras Dairy is associated with farmers across villages in UP, MP and Maharashtra and handles over 15 Lakh litres per day. At this scale, we believe the dairy industry has an opportunity to look beyond milk procurement and create greater value across the agricultural value chain. This partnership allows us to put dairy and farm waste to productive use, while creating an additional avenue for farmers to participate in the growing BioCNG economy.”

The first plant is targeted to become operational by Q4 2027, with subsequent projects expected to be developed by 2029. Once operational, each project is expected to replace 8–10 metric tonnes of natural gas per day and generate approximately 40,000–50,000 carbon credits annually, the statement noted.

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CBG projects in India

KR Raghunath

Vaibhav Nagar