MNRE Provided ₹1.92 Billion to States for Biogas Projects in the Last 3 Years

The central government provided ₹39.2 million to Uttar Pradesh to develop biogas projects during the last three years


Union Minister R.K. Singh, responding to a question in the Rajya Sabha, stated that the government has provided central financial assistance of ₹1.92 billion (~$25.88 million) to states for the development of biogas projects in the last three years. Of this, ₹39.2 million (~$528,394) was offered to Uttar Pradesh.

The Minister also stated that the Ministry of New and Renewable Energy (MNRE) supported the installation of biogas projects through several programs.

MNRE provides subsidies between ₹7,500 (~$101) and ₹35,000 (~$472) per project based on its size under the New National Biogas and Organic Manure program for small-size biogas projects. Under the Biogas-based Power Generation (Off-grid) and Thermal Energy Applications Program, MNRE provides a subsidy of ₹25,000 (~$337) to ₹40,000 (~$607) per kilowatt for power generation and ₹12,000 to ₹20,000 per kilowatt equivalent for thermal applications for medium-sized biogas projects.

For large-scale biogas projects, MNRE provides central financial assistance of ₹10 million (~134,806) per 12,000 m3 daily biogas generation and ₹40 million (~$539,225) per 4,800-kilogram daily bio-CNG generation as per the Waste-to-Energy program.

The minister informed Rajya Sabha that the government is also promoting the production of compressed biogas as an alternative green transport fuel for the procurement of oil and gas marketing companies under the Sustainable Alternative Towards Affordable Transportation Program.

In June 2021, The Karnataka Electricity Regulatory Commission retained the tariff for waste-to-energy projects at ₹7.08 (~$0.097)/kWh from April 1, 2021, to March 31, 2022. The Commission had determined the tariff of ₹7.08 (~$0.097)/kWh for waste-to-energy on September 19, 2016, and in August 2020, it had extended the validity of the tariff until March 31, 2021.

Mercom had earlier reported that the Kerala State Electricity Regulatory Commission set a tariff of ₹6.81 (~$0.093)/kWh without considering accelerated depreciation and ₹6.31 (~$0.086)/kWh with accelerated depreciation for procurement of power from a 6 MW municipal solid waste (MSW) project in Kozhikode.


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