The compressed biogas project in Belagavi, valued at Rs 542.0 million (mn), has been put on hold due to lack of suitable land. The project, awarded to Gas Authority of India Limited (GAIL), has faced opposition at multiple proposed sites. Initially two city sites were shortlisted but residents resisted both, and a proposal at the Turmuri waste management facility to lease 10 acres for 25 years was abandoned after protests. Subsequent locations in the north and south zones also met similar resistance.

The Belagavi City Corporation has identified an alternative site and forwarded the proposal to the Urban Development Department for approval. Administrative approval for the project was granted on November 20, 2025, but land allocation remains unresolved even after five months. The project forms part of the Central Government's GOBARdhan Scheme under which GAIL and Hindustan Petroleum Corporation Limited (HPCL) were tasked with executing waste to gas projects across Karnataka. Belagavi was assigned to GAIL because of its position along the Dabhol–Bengaluru gas pipeline.

The city generates around 150 t of wet waste daily that the plant was to process into biogas. The plan would require no capital contribution from the municipal corporation since GAIL will bear the full capital cost of Rs 542.0 mn and an annual operational expense of about Rs 76.9 million (mn). Stakeholders cited land availability and local resistance as principal obstacles and officials are seeking expedited clearance to keep timelines intact. Proponents say resolving land allocation would unlock benefits in waste management and local energy supply.

Compressed biogas is produced by anaerobic decomposition of organic waste such as agricultural residue, cattle dung, municipal solid waste and sewage, and the gas contains 55 to 60 per cent methane before purification and compression to CNG equivalence for use as a green fuel. The scheme aims to support sustainable waste management and provide an alternative fuel for automotive, industrial and commercial sectors while reducing environmental impact. Authorities engage with communities to identify a viable location and expedite approvals so that project objectives may be realised.