08/01/2023

Subsidy on Biogas Plant

Potential of Biogas Plants

There is huge potential for setting up biogas plants in India due to the livestock population of 535.78 million in which 302 million total populations of bovines (comprising of cattle, buffalo, mithun and yak). The livestock sector contributes about significantly to India’s GDP growth.  The biogas technology is direct benefits for the farmers.

Benefit of Biogas

  • Biogas contains 55-65 % of methane, 35- 44 % of carbon dioxide and other gases such as Hydrogen Sulphide, Nitrogen and Ammonia. 
  • Biogas can be used as clean cooking fuel like lighting, LPG, and generation of electricity. 
  • It can be also used in diesel engines to substitute diesel up to 80% and up to 100% replacement of diesel by using 100% Biogas Engines. 
  • Biogas can be purified and upgraded up to 98% purity of methane content to make it suitable to be used as a green and clean fuel for transportation or filling in cylinders at high pressure of 250 bar or so and called as Compressed Bio-Gas (CBG). 
  • Biogas plant designs are now available from 1 m3 to 1000 m3 unit size or more, depending upon availability of the raw material such as for family/ household, small farmers, dairy farmers and for community, institutional and industrial/ commercial applications.


National Bioenergy Programme

  • The Ministry of New and Renewable Energy (MNRE), Government of India has notified the National Bioenergy Programme on November 2nd, 2022, this scheme further continued from FY 2021-22 to 2025-26. 
  • The Programme has been recommended for implementation in two Phases. 
Phase I

  • It has been approved Rs. 858 crore which included Rs. 100 Crore for the Biogas Programme to support setting up of small Biogas plant (1 m3 to 25 m3 biogas per day) and medium size Biogas plants ( Above 25 m3 to 2500 m3 Biogas per day ) for power generation capacity range of 3 kW to 250 kW or raw biogas for thermal energy or cooling applications.

Objective of Bioenergy Programme

The Bioenergy Programme is launched for the following objectives

Small Biogas Plants for

  • Clean cooking oil
  • Lighting
  • Small power requirement for improving sanitation
  • Reduction of GHG (Green House Gas)
  • Women empowerment
  • Employment in rural areas
  • Use Bio waste in proper way
  • Rich source of manure as byproduct
  • Reduce dependency on Chemical fertilizer


Eligibility Criteria of Biogas Plant Subsidy

  • Installation of Biogas plant under NNBOMP
  • Beneficiary should have own land of about 50 – 60 square meter area for small biogas plant of about 1 to 25 m3.
  • Availability of cow dung / feed stock and water supply on daily basis
  • Financial capacity for installing Biogas plant

Subsidy on Biogas Plants


The central financial assistance for the Biogas plant is as given below.


Central Financial Assistance For States and UTs

Biogas plant under Biogas Programmer from 1 to 25 cubic meter biogas per day ( Rs per Plant )

CFA Applicable

1 m3

2-4 m3

6 m3

8-10 m3

15 m3

20-25 m3

Hilly/NER States (Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Ladakh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand)

Island; and

Scheduled Castes (SC)/ Scheduled Tribes(ST)

Rs. 17,000

Rs. 22,000

Rs. 29,250

Rs. 34,500

Rs. 63,250

Rs. 70,400

All other States and Categories

Rs. 9,800

Rs. 14,350

Rs. 22,750

Rs. 23,000

Rs. 37,950

Rs. 52,800

Additional fixed Subsidy for

 

Biogas plant if linked with sanitary toilet

 

Rs. 1600

Rs. 1600

Rs. 1600

Rs. 1600

NA

NA

Additional fixed Subsidy for

Biogas plant if linked with MNRE approved Biogas slurry filter Unit.

Rs. 1600

Rs. 1600

Rs. 1600

Rs. 1600

Rs. 1600

Rs. 1600

Turn-Key Job Fee for construction, supervision, commissioning, and free O&M warranty for 5 years trouble free operations.

₹ 3,000/- per biogas plant for size ranging from 1 to 10 M3 and ₹ 5,000/- per plant for size ranging from 15 to 25 M3. This turnkey job fee is applicable only for plants involving onsite construction such as fixed dome design Deen bandhu Model, floating gasholder KVIC Model. Turnkey job fee will not be eligible for pre-fabricated/ manufactured biogas plants.

Incentive for saving fuels and electricity

An additional incentive of ₹10,000/- per Biogas based Generator set / Biogas engine water Pumping System (BPS) for meeting small farm power needs and water pumping from the biogas plant of 10 to 25 M3. CFA will be eligible only if the Generator set / BPS will run on 100% Biogas.

 

CFA for Medium size biogas plants: The CFA for biogas plants of size above 25 M3 to 2500 M3 biogas generation per day are as given below in the Table-II.

 

Power generating Capacity (kW)

Requirement of DPR

CFA** limited to the following ceiling limit

Administrative Charges for PIA*

Power Generation

Thermal Application

Power Generation

Thermal application

3 kW – 50 kW

No

Rs. 45,000 per kW

Rs. 22,500 per kWeq thermal/ cooling

10% of the CFA

5% of the CFA

>50 kW – 200 kW

Yes

Rs. 40,000 per kW

Rs. 20,000/- per kWeq thermal/ cooling

Rs. 2,00,000/- (fixed)

Rs. 1,00,000/- (fixed)

>200 kW – 250 kW

Yes

Rs. 35,000 per kW

Rs. 17,500/- per kWeq thermal/ cooling

Rs. 2,50,000/- (fixed)

Rs. 1,00,000/- (fixed)

3 kW – 50 kW

No

Rs. 45,000 per kW

Rs. 22,500 per kWeq thermal/ cooling

10% of the CFA

5% of the CFA

 

** Special Incentives for NER, Island, Registered Gaushalas; and SC/ST: An incentive of 20% over and above the CFA mentioned in Table-II.

Small Biogas Plants ( 1 to 25 m3)

  • The individual beneficiary can submit their application with requisite details for installation of biogas plants through MNRE biogas web portal/android mobile app. 
  • The PIA will process such applications only after allocation of targets and then take action for the installation of biogas plants at the beneficiary site.

Medium Size Biogas Plants ( Above 25  to 2500 m3 )

  • The proposals for such projects shall be submitted by the PIAs to MNRE round the year through MNRE Biogas web-portal.

Website of Biogas Energy Programme

Biogas Energy Programme help line Number & Contact Number

Biomass Forms Downloads

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