Mumbai: The state has approved the handover of 18 acres of land at Deonar by the BMC to Mahanagar Gas Ltd (MGL) for the establishment of 1,000 TPD (ton per day) compressed bio-gas plants in two phases. MGL is expected to invest over Rs 600 crore in constructing and operationalising the plants, which will process 1,000 ton of wet waste per day. MGL is expected to earn around Rs 74 crore annually through the sale of the produced gas.The state cabinet, chaired by chief minister Devendra Fadnavis, on Tuesday approved the allotment of the plots to MGL at a concessional rate. The central govt aims to set up 500 biogas projects, including 75 bio-methanation projects, in urban areas under the Gobardhan scheme. While the cost of setting up these projects will be borne by oil and gas marketing companies, the central govt has directed states to provide land and basic facilities at a nominal rate for the projects.The BMC proposed to relax the condition regarding the reserve price of the plots and sought the state’s approval. The consolidated reserve price of the land is over Rs 132 crore. The state approved handing over the land to MGL for a lease rent of Rs 72,843 per year for two plots for 20 years and an extended five-year period. An MoU was signed between BMC and MGL in June 2023.Deputy municipal commissioner (solid waste management) Kiran Dighavkar said the BMC will benefit from the project as a huge quantity of wet waste generated in the city will be processed. Minor encroachments will have to be cleared before handing over the plot for phase 1, which is located on the outskirts of the dumping ground, where a BMC garage for bulldozers and excavators is housed. For phase 2, which is being allotted at the dumping ground, there is a need for carrying out bio-mining on the land to clear it, which will be carried out soon, an official said. Wet waste generated from hotels, restaurants, banquet halls, and vegetable waste from vegetable markets will be segregated before being supplied to the plant. Each of the bio-gas plants will produce 18 ton of compressed biogas per day. The biogas, purified and compressed, can also be used as auto fuel.Though the project entails the use of 500 ton per day in each phase, provisions have been made for a 10% increase. Source-segregated wet waste will be provided free by the BMC.