The Sludge generated from common effluent treatment plant contains toxic & bio-refractory compounds which is transfer to TSDF site after dewatering process. The Bio-gas generated from the Sludge collected from sewage treatment plant is very common. First time a Bio-gas has been produce from digesting hazardous sludge by anaerobic sludge digestion process in a pilot scale plant. The study shows that with 5 days HRT, pH between 6.5-8 & COD strength was in a range of 20000-40000 mg/l. The Bio-gas generated was 110-140 liter/Hour. The digested sludge was presenting good amount of volatile suspended solids & COD this can be one of the good option to generate electricity which can be utilize in house applications in CETP.