Government Subsidy for Biomass Aggregation Machinery in CBG Projects
The Government of India is continuously working to promote clean energy and reduce stubble burning in agriculture. Under the Compressed Biogas (CBG) initiative, the Ministry of Petroleum & Natural Gas has recently launched a scheme to provide financial assistance for Biomass Aggregation Machinery. This scheme was notified on 8th July 2025 and is a big opportunity for CBG producers.
Objective of the Scheme
The main goal is to support CBG project developers in procuring agricultural residues as raw material for biogas production. Through this initiative, farmers will get better income for their crop residues, and the problem of stubble burning can be reduced. The ministry has targeted 100 CBG projects initially under this scheme.
Eligibility Criteria
To apply for this subsidy, the following conditions must be fulfilled:
Only CBG producers (existing plants or those under construction) can apply.
At least 50% of the total feedstock must be agriculture residue.
The project must use minimum 3,000 MT agricultural biomass annually.
The CBG plant must have a minimum capacity of 2 TPD.
Registration on the Gobardhan Portal is mandatory.
New projects must have at least 25% completion at the time of application and 50% completion before subsidy disbursement.
The applicant should not have availed benefits under any other Central/State subsidy scheme for the same equipment.
Machinery Covered Under the Scheme
The scheme provides subsidy for a wide range of biomass aggregation machines, such as:
Cutters / Rotary Slashers
Balers & Rakers
Tractors & Trolleys
Loaders and Attachments
Telehandlers
Moisture Meters
Water Tanks
Firefighting Equipment
Lighting Arrangements
A complete set of these machines is termed as a BAM (Biomass Aggregation Machinery) Set under the scheme.
Funding Pattern
The government provides 50% subsidy on the cost of the BAM set.
Maximum subsidy available: ₹90 lakh per BAM set.
A single project can get subsidy up to ₹9 crore (if multiple sets are required at different locations).
Application Process
- Applications are accepted on the BAM Portal on a quarterly basis.
- Before buying the machinery, applicants must prepare a Detailed Project Report (DPR) and submit it along with required documents, quotations, undertakings, and a 5-year usage bond.
- Once approved, machinery must be purchased within 6 months.
- The scheme is valid until 30th September 2026 (subject to extension by the Ministry).
Why This is Important
This scheme will help CBG producers reduce raw material procurement challenges. At the same time, it supports farmers by creating a market for agricultural residues, thus reducing stubble burning and improving rural income.
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