Uttar Pradesh State Bio-Energy Policy- 2022
Uttar Pradesh has rolled out its “Uttar Pradesh State Bio-Energy Policy- 2022“, building on previous initiatives like the State Bio-Energy Promotion Programme-2018. This new policy, which is valid for five years from its notification date, aims to significantly boost bio-energy production across the state.
Why Bio-Energy? The Problems UP Aims to Solve
The policy highlights a critical need to address the *environmental crisis and loss in soil fertility* caused by burning agricultural waste in the fields. By promoting bio-energy enterprises that use this waste, the state government seeks to provide a sustainable alternative. Beyond agricultural residue (often referred to as ‘Parali’ in the sources), the policy also targets utilizing other widely available waste materials such as urban solid waste, livestock waste, waste from agricultural markets, and sugar mill waste.
The Policy's Core Focus
The main goal of this policy is to promote the establishment of Bio-Energy units through *private investors/developers, attracted by various facilities and incentives offered by the state government. The primary thrust is on **promoting the production of Bio-CNG/Compressed Bio-gas (CBG) and Bio-Coal* from waste-based enterprises. However, it also encourages the production of Bio-Diesel and Bio-Ethanol.
To ensure feedstock availability, especially during seasonal reductions in waste, the policy encourages the use of non-edible oil seeds/plantation crops (like karanj, neem, castor, jatropha), small rotation crops (like sweet jowar), and energy grass planted on barren lands.
Key Intended Benefits and Impacts
The policy outlines several significant positive impacts it intends to have on Uttar Pradesh:
- Environmental Improvement: By providing a use for agricultural waste and other organic waste, it aims to reduce the practice of burning waste in fields, thereby addressing the environmental crisis and helping prevent soil fertility loss.
- Economic Boost for Rural Areas: The establishment of bio-energy enterprises is expected to *create additional income for farmers (by purchasing their waste) and *generate new employment opportunities* in rural areas. Mechanisms are in place to ensure farmers are paid for their waste within 15 days.
- Efficient Waste Utilization: The policy promotes the productive use of various waste streams that are abundant in the state, turning a disposal problem into an energy source.
- Energy Production and Security: It encourages the production of valuable bio-energy products like CBG, Bio-Coal, Bio-Diesel, and Bio-Ethanol, contributing to the state’s energy needs.
- By-product Development: Bio-Manure, a by-product from Bio-CBG plants, is recognized and its research, marketing, and distribution are promoted by the Agriculture Department. Its sale at licensed fertilizer shops will be mandatory.
Sweetening the Deal: Incentives for Investors
To attract private investment, the policy offers a range of incentives:
- 100% exemption in electricity duty for 10 years from the start of commercial production.
- 100% exemption in stamp duty on land purchase or lease for establishing plants or feedstock collection/storage.
- 100% exemption from development charges* levied by development authorities.
- Subsidies: Upfront subsidy on biomass collection equipment (rakers, balers, trollers) for aggregators, FPOs, Co-operative Societies, etc., with an additional 30% subsidy (up to ₹20 Lakh) from the state government on top of central government schemes.
- Production-based subsidy for bio-energy units, in addition to central government benefits, based on production capacity:
- Compressed Bio-gas: ₹75 lakh per ton (maximum ₹20 crore).
- Bio-coal: ₹75,000 per ton (maximum ₹20 crore).
- Bio-Diesel: ₹3 lakh per kiloliter (maximum ₹20 crore).
- These subsidies can be used for plant and machinery, infrastructure, construction, and power supply/transmission systems (excluding administrative buildings and land cost).
- Land Availability: Land can be made available by the Revenue Department on a token lease rent of *₹1 per acre annually* for a maximum of 30 years.
- Regulatory Ease: Deemed exemption from land ceiling and provision for conversion of agricultural land to non-agricultural land for bio-energy purposes is allowed. Regulatory support is facilitated for clearances like fire, land issues, electricity, etc.
- Approach Road: For investments of ₹50 crore or more, an approach road up to 5 km from the unit to the main road will be provided.
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