Energy plays an important role in the modern society and can serve as one of the vital parameters of socio-economic development. Despite developments in technology, over three billion persons living in rural parts of the low- and middle-income countries continue to cover their energy needs for cooking through traditional ways by burning biomass resources and fossil fuels. Central and state Govt. ensure LPG connection to every households through various schemes in India, but there is a great hue and cry on the price of LPG during last few years. This paper as a case study focuses on to assess the potential of bio gas production in rural areas of Himachal Pradesh. A comprehensive survey regarding use of energy resources, agricultural land and cattle strength was conducted across the study area. Total 528 households among ten selected villages surveyed for this purpose. It is observed that the manure of the livestock farms is not used efficiently and area have good potential and feasibility of bio gas production. The benefit of biogas production would therefore be manifold: (1) local energy source, (2) mitigation of environmental impacts, (3) reducing CH4-emissions, (4) producing organic fertilizer as a side product (5) additional earnings/ savings for farmers. (6) organic waste management.