- August 6, 2026
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Haryana CBG Policy 2026
Haryana CBG Policy 2026: ₹40 Cr Capital Support, 70% SGST Reimbursement, 7% Interest Subsidy & 43,000 TPD Target
Summary of Objectives, Important Subsidies, and Financial Values
The Haryana Government has introduced the Haryana CBG Policy 2026 to promote the development of Compressed Biogas (CBG) projects across the state. Below is a structured summary of the policy objectives, financial incentives, subsidies, and administrative provisions.
1. Core Objectives and Targets
The policy aims to convert diverse bio-resources, such as agricultural residues, animal dung, municipal solid waste, and agro-industrial by-products, into Compressed Biogas (CBG).
The state targets the commissioning of 3,000 Tonnes Per Day (TPD) of CBG capacity by 2030.
The target increases to 10,500 TPD by 2035.
The ultimate goal is to reach 43,000 TPD by 2047.
2. Subsidies and Financial Values
Capital and Infrastructure Support
Plant Capital Support
- Developers receive up to ₹2.00 crore per TPD of installed CBG capacity.
- Maximum Capital Limit: The plant capital support is capped at ₹40.00 crore per project.
- Total Financial Ceiling: The aggregate state financial assistance across all schemes is capped at ₹2.50 crore per TPD of installed capacity.
- Minimum Capacity: Plants must have a minimum designed capacity of 2.0 TPD to be eligible.
Waste Management Systems
- Installation of Effluent Treatment Plants (ETP) and Sewage Treatment Plants (STP) is subsidized at up to 50% of the eligible project cost, capped at ₹5 crore per project.
Basic Infrastructure
- The state provides up to 100% assistance for road connectivity, water supply, and dedicated power feeders.
Captive Renewable Energy
- Projects receive a subsidy of up to ₹50 lakh per MW for the installation of captive renewable projects or solar rooftops.
Operational and Power Incentives
Power Tariff Subsidy
- Power tariffs are reimbursed at up to ₹2 per unit of electricity consumed by CBG plants for 5 years from the start of commercial operations.
Electricity Duty
- Electricity duty on power consumed during operations is fully reimbursed for 20 years.
Charges Waived
- All cross-subsidy charges, transmission and distribution charges, surcharges, and reactive power charges are totally waived.
Tax, Interest, and Insurance Benefits
SGST Reimbursement
- Projects are eligible for up to 70% reimbursement of net State Goods and Services Tax (SGST) for up to 7 years, capped at 100% of the project cost.
Interest Subvention
- The state offers an interest subvention of up to 7% on term loans, capped at a maximum of ₹25 lakh for 3 years per project.
Insurance Assistance
- Projects receive a 33% subsidy on insurance premiums, up to ₹25 lakh per year for 3 years.
Tax Exemptions
- There is a 100% exemption from entry tax on supplies for setting up the project, and octroi on biomass fuels is fully exempted.
Land Facilitation, Exemptions & Stamp Duty
Stamp Duty & Registration Fee
- Up to 100% exemption from the payment of fee and stamp duty charges is allowed for the registration of rent, lease, or sale deeds for the land required for setting up CBG projects.
Land Exemptions
- Projects are exempted from External Development Charges (EDC), scrutiny fees, and infrastructure development charges (special services charged on pro-rata). They also do not require Change of Land Use (CLU) approvals.
Panchayat Land Lease
- Panchayat land will be leased to fully owned Government entities at concessional rates (1% to 2% of the collector rate depending on land type, with a 5% progressive annual increase) for a minimum of 30 years.
Employment, Labor & Skill Subsidies
Employment Generation Subsidy
- The state subsidizes up to 120% of the average gross annual salary for hiring local employees for 10 years.
Salary Caps for Subsidy
- This is subject to a cap of ₹1.00 lakh for General category employees and ₹1.20 lakh for Women, SC, Divyang, and Ex-Servicemen per employee per year.
HKRN Employment Booster
- The state reimburses 100% of the employer’s EPF contribution, up to ₹25,000 per employee per year for 5 years.
Skill Development Subsidy
- A subsidy of ₹20,000 (or as per Haryana Skill Development Mission rates, whichever is lower) is provided for approved training programs for personnel engaged in CBG operations.
Agricultural, Feedstock, and Bio-Manure Values
Crop Diversification Incentive
Farmers cultivating approved energy crops (like Napier Grass) for CBG plants receive ₹10,000 per acre per year (₹8,000 for paddy diversification + ₹2,000 bonus).
Bio-Manure Support
Farmers receive Direct Benefit Transfer (DBT) support at the rate of ₹0.50 per kg of Fermented Organic Manure (FOM) utilized on their farms.
Biomass Machinery Support
- Equipment like balers and shredders are supported with a 50% subsidy on the sale value (or upper limit, whichever is less).
Carbon Credits
- Carbon credits generated earn an incentive of ₹100 per unit, subject to an overall cap of ₹1.0 crore.
Transportation and Pipeline Network Allowances
Pipeline Connectivity
- Projects receive financial assistance of ₹50 Lakh per kilometer or 50% of the project cost (whichever is less) under the Government of India’s DPI Scheme.
Additional Pipeline Incentive
- The state provides an additional incentive equivalent to 40% of the Central Financial Assistance or ₹20 Lakh per kilometer (whichever is less), up to a maximum limit of ₹500 Lakh.
Vehicle Taxes
- New CNG trucks and buses purchased and registered in NCR districts receive a 100% Motor Vehicle Tax exemption for 10 years. Used ones receive a 50% exemption.
3. Important Administrative Regulations
Application Fees
- Developers must submit a non-refundable registration fee of ₹10,000 per unit.
Performance Security
- Developers are required to furnish a Performance Bank Guarantee equivalent to 3% of the total project cost to secure formal sanction.
Commissioning Timeline
- Projects must be successfully commissioned within 24 months from the execution date of the Implementation Agreement.
Capacity Regulation
- Not more than 80% of the estimated waste-based biogas generation capacity of a specific area can be allocated to CBG projects to ensure biomass availability for other local community needs.
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