New Delhi: Government-owned farm cooperative Nafed will set up 100 facilities, which will use agriculture waste such as sugarcane press-mud, the residue of the filtration of sugarcane juice, and stubble to produce bio-CNG.

The first such plant will come up at Muzaffarnagar in Uttar Pradesh, which is in the sugarcane belt.

“The preparation for the plant is at an advanced stage and the construction of the facility will start soon. Indian Oil Corporation has agreed to procure the bio-CNG from these plants at Rs 48 per kg,” Nafed managing director Sanjeev K Chadha said.