Government Money on the Table

The government will fund a big slice of your plant.

Between central subsidy, guaranteed offtake, tax holidays and state incentives, a Compressed Biogas plant is one of the most heavily supported investments in India today with central financial assistance of up to ₹10 crore per project. Here’s exactly what’s available, and how to claim it.

Why The Money Exists

India needs clean fuel. You have the land. The government bridges the gap.

The Waste-to-Energy Programme, part of the National Bioenergy Programme (2021–2026), was created to get industries and entrepreneurs to turn urban, industrial and agricultural waste into Biogas, Bio-CNG (CBG), power and syngas. A central budget runs behind it and the policy is designed to put money in the hands of the people who actually build plants. That’s you.

Figures on this page are drawn from current Government of India scheme guidelines and are indicative. Exact assistance depends on plant type, capacity, location and category, and is subject to the latest official notifications. Nexgen Energia confirms what your specific project qualifies for as part of your Detailed Project Report (DPR).

Central Financial Assistance (CFA)

Up to ₹10 crore, paid towards your plant.

Under the Waste-to-Energy Programme, CBG projects receive Central Financial Assistance based on capacity capped at ₹10 crore per project, calculated on project cost excluding land.

₹4.00 Cr

per 4,800 kg/day capacity, for a new Biogas-to-CBG plant. Capped at ₹10 Cr per project.

₹3.00 Cr

per 4,800 kg/day, to convert an existing biogas plant to CBG. Lower, because some infrastructure already exists.

+20%

extra CFA for projects in Special Category States and registered Gaushalas using cattle dung.

The Full Stack of Support

It’s not one scheme. It’s several, working together.

The best projects stack central subsidy, guaranteed offtake, soft loans, fiscal benefits and state-level incentives. Here’s the landscape and the official source for each.

MNRE · Capital Subsidy

Waste-to-Energy Programme

The headline capital subsidy CFA up to ₹10 crore per CBG project, under the National Bioenergy Programme. Covers Biogas, CBG (Bio-CNG) and biogas-to-power. New machinery only; MSW incineration and thermal projects are excluded.

Read the MNRE programme →

MoPNG · Guaranteed Offtake

SATAT Initiative

Sustainable Alternative Towards Affordable Transportation. Oil marketing companies commit to buy your CBG, creating an assured market and a price floor. A SATAT-linked LOI also unlocks up to 50% of your CFA as an advance during construction.

Visit the SATAT portal →

MNRE · Small Biogas

National Biogas Programme (NNBOMP)

For smaller plants (1–25 m³/day), subsidies run from roughly ₹9,800 to ₹70,400 by size. Add ₹10,000 for a generator/water-pump plant, ₹1,600 for a toilet-linked plant, and 20% extra in NE/hilly states, islands, SC/ST and Gaushala cases.

See the MNRE biogas scheme →

MNRE · Feedstock

Biomass Aggregation Machinery (BAM)

Separate financial assistance for the balers, rakes and machinery you need to collect and aggregate crop residue and feedstock the practical bottleneck most plants hit. Worth claiming alongside your core CFA.

Learn about feedstock support →

Fiscal · Tax & GST

Tax holiday & GST benefits

A five-year income-tax holiday on CBG operations, GST input credit on manufacturing, subsidised loan interest, and waiver of land-conversion charges all of which lift your net returns in the early, capital-heavy years.

See the impact on your numbers →

State · Extra Layer

State industrial incentives

Several states add their own incentives on top for example Maharashtra (PSI-2019) and Rajasthan (RIPS-2024). Depending on where your land sits, this can meaningfully sweeten the deal. We check your state during feasibility.

Ask what your state offers →

Who & What Qualifies

Most serious projects are eligible. Here’s the checklist.

Who can apply

Companies, LLPs, firms and partnerships

NGOs, trusts and cooperatives

SPVs and joint ventures

Registered Gaushalas (cow shelters)

Local bodies, private developers and ESCOs

Indian Entrepreneurs (SATAT LOI Preferred)

What the project needs

Install new machinery — not refurbished equipment

Minimum ~2 TPD CBG (or equivalent biogas output)

Use at least 50% biomass feedstock

Minimum 2,500 m³/day biogas capacity

No overlapping renewable energy subsidies

MSW and thermal projects are not eligible

How To Claim It

From application to money in your account.

Central subsidy under the Waste-to-Energy Programme is applied for online through MNRE’s BioURJA portal. Here’s the path and Nexgen Energia walks it with you.

Submit your proposal on BioURJA

File the project proposal on MNRE’s BioURJA portal with your DPR, feedstock and feasibility details.

Receive in-principle approval

MNRE reviews and issues an in-principle sanction confirming your eligibility and CFA before you build.

Build & commission on schedule

Commission the plant within 24 months. SATAT-linked projects with a 50%+ loan can draw up to half the CFA as an advance during construction.

Prove performance, claim full CFA

Share three months of performance data at a minimum 80% Plant Load Factor (PLF). Hit it, and the full subsidy is released to your bank or loan account. SCADA/remote monitoring is mandatory.

Plant Load Factor achieved

Share of CFA released

80% and above

100% — full subsidy

60% – 80%

80% of CFA

50% – 60%

60% of CFA

Below 50%

No subsidy released

Two disbursement routes apply: full CFA after commissioning, or for SATAT-linked projects with at least 50% of cost financed by a loan up to 50% as an advance during construction. A performance inspection takes place within 18 months of commissioning. Land cost is excluded from the project cost used to calculate CFA.

You Don’t Do This Alone

We handle the subsidy paperwork.

Identify every central, fiscal and state scheme your project qualifies for

Prepare a bankable DPR and file your proposal on the BioURJA portal

Structure the project to unlock SATAT-linked advance subsidy where possible

Engineer to comfortably clear the 80% PLF threshold for full CFA

Read The Investment Breakdown

Find out if your land qualifies
in one conversation.

Tell us where your land is and what waste is around it. We will tell you honestly whether a CBG plant makes sense and roughly what it could earn. No pressure. No obligation.