The concern about global warming effects by continuous exploitation of non renewable fossil fuels and scarcity of electricity generation accelerates the urge for searching alternative source of energy. Development of Microbial fuel cell using microbes present in waste water is the novel approach to treat this hurdle. Apart from biopower generation, it acts as a biosensor. Microbes metabolizes the organic matter present in waste water during the process electricity is generated. Within course of time the wastewater is treated with Chlorella vulgaris for the removal of phosphate for about 50 percent present in water. The amount of electricity generated has increased. The biomass thus produced, can be used for biofuel generation. For further purification of this treated wastewater, a novel method of treating it with Strychnos potatorum (chilla ginjalu) seeds is attempted.