An 85 m(3) floating drum biogas plant was installed at the dairy farm of HP Agricultural University, Palampur, in 1989 to meet the energy needs of cooking food in the veterinary hostel mess and for general dairy requirements. It cost nearly Rs. 0.21 million ($6293), including the cost of an 800 m gas pipe line, and is working satisfactorily without any major problem except breakage of the central guide of its gas holder. With the feed rate of 17 q cattle dung/day, 50 m(3) and 30 m(3) biogas was obtained in the summer and winter months, respectively, during 1989-1991. The reduction of feed rate to 9 q cattle dung/day in 1992 onwards resulted in lowering the gas production of 25 m(3) and 18 m(3) in the summer and winter months, respectively. This gas was just sufficient to meet 73% (9466 MJ/month) and 53% (7019 MJ/month) of the energy needs for cooking meals in the hostel alone in the summer and winter months, respectively, during the course of study. Considering the biogas and manure obtained from the plant, the income-cost ratios during the period 1989-1991 and 1992-1997 were found to be 1.44 and 1.15, respectively, suggesting that, though the plant was under fed relative to the requisite feed rate (21 q cattle dung/day), the installation of this plant was an economically viable proposition.