In a move aimed at reducing power costs and improving waste management, the Municipal Corporation (MC) is planning to install biogas plants with digesters at the city’s sewage treatment plants (STPs) under the Urban Challenge Fund (UCF).Officials said Ludhiana currently operates four STPs based on Sequential Batch Reactor (SBR) technology with a total capacity of 440 million litres per day (MLD). While the plants play a key role in treating sewage, they consume a large amount of electricity, putting a heavy burden on the civic body’s finances.Under the proposed plan, methane gas generated from sewage sludge will be captured and used to produce electricity. This is expected to help the MC move towards energy neutrality by reducing its dependence on external power supply and lowering operational costs.MC Commissioner Neeru Katyal said the project is being explored under the UCF framework, which allows urban local bodies to raise funds from the market for infrastructure projects, with partial central assistance. As per the guidelines, at least 50 per cent of the project cost has to be mobilised through loans, bonds or public-private partnerships, while the Centre can provide up to 25 per cent assistance.Apart from cutting electricity expenses, the proposed biogas plants are also expected to address the issue of sludge management. The digesters will treat the secondary sludge generated by SBR technology, reducing the volume of waste that needs to be disposed of.Katyal added that the project could also bring environmental benefits by lowering the carbon footprint of municipal operations. The initiative aligns with national goals of promoting green energy and sustainable urban infrastructure.There is also a possibility of generating additional revenue. The MC may explore the production of compressed biogas (CBG) or organic manure from treated sludge, which can be sold commercially.Sources said the proposal is at a preliminary stage and detailed project reports are being worked out. If approved, the project could become one of the key urban infrastructure initiatives taken up by the civic body under the Urban Challenge Fund.