To accelerate the adoption of CBG, the Ministry of New and Renewable Energy (MNRE) provides substantial Central Financial Assistance (CFA) under the National Bioenergy Programme. Understanding these tiers is crucial for optimizing your project's ROI.
Base Subsidy Tiers
The CFA is calculated based on the production capacity of the plant. The core subsidy structure is as follows:
- New CBG Plants: ₹4 Crore per 4,800 kg/day of CBG generation.
- Smaller Plants: ₹2 Crore per 2,400 kg/day of CBG generation.
- Existing Biogas Conversions: For existing plants upgrading to CBG, the subsidy is ₹3 Crore per 4,800 kg/day.
Note: The maximum subsidy cap per single project is set at ₹10 Crore.
Example Calculation
If you are developing a standard 10 TPD (10,000 kg/day) CBG plant, you are eligible for approximately ₹8 to ₹10 Crore in central subsidies, significantly reducing your initial capital expenditure.
Additional Incentives (The 20% Bonus)
The government provides an extra 20% top-up on the base CFA for projects located in specific strategic or challenging areas. You qualify for this bonus if your plant is:
- Located in North-East states.
- Located in designated hilly regions.
- A registered Gaushala-based project (promoting rural dairy integration).
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