Chandigarh: Indian Oil Corporation Limited (IOCL) has completed soil testing at the Dadumajra dumpsite. This is a key step towards finalising the financial estimate for the proposed 250 metric tonne capacity compressed biogas (CBG) plant.The exercise was aimed at assessing the suitability of the site for construction and ensuring the long-term stability and functioning of the facility.A crucial aspect of testing was identifying and earmarking a technically feasible location to lay the foundation of the plant. The report is expected to give IOCL a clearer picture of the project cost and help it take a final call on the investment required.“Soil testing at the Dadumajra dumpsite has been completed and IOCL will now prepare the financial estimate of the plant, based on the findings. Soil testing includes assessing the bearing capacity of the soil at the proposed location and examining the existing natural soil bed,” sources said.According to them, due to presence of wet waste and its ongoing decomposition process, parts of the earmarked area may not be suitable for construction. However, the location can be shifted slightly to adjoining areas if required, and that flexibility has been provided to IOCL.“It is now up to IOCL to finalise the financial aspects and decide on the installation of the plant,” sources said.Being a govt-owned entity, IOCL is required to follow prescribed financial procedures before committing expenditure on a project of this scale.“Like the MC, IOCL is also a govt entity and any expenditure on such a project has to pass through laid-down financial rules and regulations. Therefore, if the soil testing report leads to an increase in the project cost compared to earlier estimates, the corporation will have to undertake detailed deliberations before taking a final decision on setting up the plant,” sources told TOI.The MC has allotted around 10 acres of land to IOCL for the project and has earmarked an additional five acres to meet any future expansion requirements. Under the proposed arrangement, IOCL will run, operate and maintain the plant for 15 years, while an additional two years have been earmarked for construction.“The MC will collect both wet waste and cow dung, which will also ensure their timely transportation to the plant on a daily basis for processing as per the agreed terms and conditions,” sources said.The proposed CBG plant is expected to play a significant role in Chandigarh’s waste management strategy by scientifically processing organic waste and reducing the burden on the Dadumajra landfill. The project is also aimed at generating clean energy, while helping the city move towards more sustainable waste disposal practices.Box: Chandigarh’s waste generation–City generates around 200 MT of wet waste daily–Total waste generation is estimated at 450-500 MT per day–Figures include wet, dry and horticulture waste–Dry waste and horticulture waste plants are already operational–Proposed CBG plant will primarily process wet waste generated in the cityBox: Project at a glanceThe MC signed an MoU with IOCL on Nov 20, 2025, to establish the CBG plant in Dadumajra under the design-build-finance-operate (DBFO) model. The project includes 33% green belt development, compliance with CPCB norms, and provision for accepting up to 10% mixed unsegregated waste. Officials said the plant will enhance waste-processing capacity, reduce landfill emissions, cut dependence on fossil fuels and support Chandigarh’s long-term sustainability goals.
