Pune: Year-Long Closure Of Sus Bio-CNG Plant To Cost PMC ₹2.81 Crore

The Pune Municipal Corporation (PMC) is set to pay Rs 2.81 crore in compensation to the contractor operating the Sus bio-CNG project, after the facility remained shut for nearly a year. The standing committee has approved the proposal following an inquiry that confirmed financial loss to the private operator.

The bio-CNG plant, set up to process wet waste and generate fuel, had been facing strong opposition from residents of the Sus area. Locals complained of a severe foul smell from the facility and staged protests demanding its closure. The matter later reached the court, which in September last year directed PMC to take necessary measures to curb the odour.

Citizens subsequently approached a BJP leader with their grievances, after which the municipal administration was instructed to shut the plant. PMC halted operations from January 2024 to 2025.

Following the shutdown, the contractor also submitted a letter seeking compensation; initially, they demanded Rs 6 crore to Rs 7 crore for the losses incurred. 

Pune Municipal Commissioner Naval Kishore Ram then appointed an inquiry committee to examine the claim. Based on the committee’s report, it was concluded that the contractor was eligible for Rs 2.81 crore in compensation.

A proposal to disburse this amount through classification was placed before the standing committee, which cleared it in its recent meeting. 

Officials from the Solid Waste Department stated that although the project has been functioning at low capacity between January 2024 and June 2025, the contractor had formally notified the PMC about the financial impact caused by the prolonged closure.