Subsidy For Bio Gas Business in India

subsidy for bio gas business


Subsidy for Bio Gas Business in India- Biogas energy is one of many diverse resources available to help meet our demand for energy. It is environmentally-friendly, renewable energy source. It is a versatile renewable energy source which can be converted into liquid transportation fuels that are equivalent to fossil-based fuels, such as gasoline, jet, and diesel fuel and can also be used in power production. This will help to save non-renewable resources of energy.


Financial Assistance/Benefits Available / Subsidy for Bio Gas Business in India

There are various subsidy schemes provided by the Central Government and State Government to financially support the biogas projects :

(I) Central Government Schemes:

1. Bio Power Generation and Thermal Energy Application Programme under Ministry of New and Renewable Energy (MNRE):

The scheme provide assistance to Biogas based Power Generation (Off-grid) and Thermal application projects from Rs. 25,000/- to Rs. 40,000/- per KW for Power and Rs. 12,500/- per KWe to Rs.20,000/- per KWe of thermal energy.



2. New National Biogas and Organic Manure Programme (NNBOMP) under Ministry of New and Renewable Energy (MNRE):

The scheme provides assistance of 50% advance release of funds for annual targets allocated to specified State Rural Development Departments/ State Nodal Agencies and KVIC, Mumbai for Biogas plants.
Additional assistance of 100% on purchasing of biogas engines and on transportation of biogas from the site of the biogas plant to the site of biogas engine.


Note: The above mentioned schemes (in point 1 and 2) are under the old regime which are discontinue at the present time. The proposal for the schemes for their further applicability has been submitted to respective department for their approval which can be approved in future date.



3. Agriculture Infrastructure Fund (AIF) under Ministry of Agriculture & Farmers Welfare:

The scheme is applicable on units engaged in production of Bio Stimulants.
Scheme provides assistance on Interest Subvention of 3% per annum on loans up to a limit of Rs. 2 crores for 7 years.
Scheme also provides assistance on Credit Guarantee coverage. The fee for the credit guarantee coverage will be paid by the Government.

The scheme is in operation from 2020-21 and will remain in operation 2032-33. However, the loan disbursement period will be till 2025-26, i.e. the eligible person must avail bank finance till 2025-26 to take benefits under this scheme.



(II) State Government Schemes:

There are various subsidy schemes introduced by almost all states to the specific units or to the manufacturing units in general. Like in Haryana, State Government will issue the below mentioned scheme in order to promote implementation of renewable energy based industries:


Haryana Micro, Small and Medium Enterprise Policy, 2019 – State Renewable Energy Scheme.
Haryana Enterprise and Employment Policy, 2020 Schemes such as Assistance for Waste Management Scheme, subsidy on Interest on loan, Stamp duty refund, subsidy on CLU fees paid, Investment in lieu of Net SGST paid, etc.



If you are interested to invest your funds in projects related to bio-energy, you can avail benefits of above mentioned subsidies provided by the State and Central Government.



To know more about this business, see our video:


We at KIP Launched the Warehouse Business & Subsidy Updates Plan for the investors/ businessman, who are interested or doing warehouse business.

We at KIP providing WAREHOUSE BUSINESS Services Since 2008.

To know more– https://kipfinancial.com/warehouse-business/

For joining– https://rzp.io/l/warehousebusinesssubsidy


Join us on Social Media-

Facebook Page- https://www.facebook.com/KIPFINANCIAL

Facebook Group- https://www.facebook.com/groups/kipfinancial

YouTube- https://www.youtube.com/channel/UCIFJyauYY2eTcqmrsT_R6sA?sub_confirmation=1


Help Desk:

9350068318, 8683898080

KIP Financial Consultancy Pvt. Ltd.

DSB – 38, Red Square Market, Hisar – 125001 (HR)

No Comment

Comments are closed.