Swedish automaker Scania has teamed up with Swedfund to produce biogas at a plant in Nagpur, India which will be used as an automotive fuel.
The gas will be made from digested sludge from one of the Nagpur city's wastewater treatment plants.
The new initiative is a part of the country's larger initiative dubbed 'Smart Cities' to improve the environment and transport system across 100 largest cities within the country.
India presently faces air pollution related problems, and it is currently occupies third place in terms of global carbon dioxide emissions, which is expected to double in the coming decades.
With biogas produced from waste in major cities and residual products from agriculture will help the country fight pollution related problems and facilitate waste management.
Swedfund CEO Anna Ryott said: "This is a Swedish venture, which in a sustainable and profitable manner can create many new jobs and contribute to India's shift towards renewable fuels.
"Biogas is the fuel of the future, which will contribute to solving India's huge pollution problems while taking a comprehensive approach to the major environmental challenges."
