Subsidy for CBG Plant in Rajasthan under RIPS-2024 | Up to ₹50 Crore Investment
Government Subsidy for CBG Plants in Rajasthan (Investment up to ₹50 Crore)
Rajasthan has emerged as one of India’s most proactive states in promoting renewable energy and waste-to-energy projects, including Compressed Biogas (CBG) plants.
Under the Rajasthan Investment Promotion Scheme (RIPS-2024), the State Government offers an extensive package of financial subsidies, tax reimbursements, interest subventions, and exemptions to attract new investments in the Green Energy Sector.
This blog outlines all the major state-level incentives available for CBG plants with investments up to ₹50 crore as per the RIPS-2024 and supplementary documents.
🏭 Eligible Category: MSME or Large Manufacturing Unit
As per Government of India’s MSME definition:
Micro Unit: Investment ≤ ₹1 Crore and turnover ≤ ₹5 Crore
Small Unit: Investment ≤ ₹10 Crore and turnover ≤ ₹50 Crore
Medium Unit: Investment ≤ ₹50 Crore and turnover ≤ ₹250 Crore
Hence, a CBG project up to ₹50 Crore qualifies as a Medium Enterprise under the MSME segment of RIPS-2024.
💰 Major Subsidies & Incentives for CBG Projects in Rajasthan
1️⃣ Investment Subsidy (SGST Reimbursement)
75% reimbursement of the State GST (SGST) due and deposited for 10 years from the date of commercial production.
Applies to all renewable-energy-based manufacturing units, including biogas, bio-CNG, and waste-to-energy projects.
2️⃣ Interest Subvention (on Term Loan)
For loans taken to set up plant and machinery/equipment:
| Loan Amount | Interest Subvention | Duration |
|---|---|---|
| Up to ₹5 Crore | 6% per annum | 7 Years |
| ₹5 – 10 Crore | 4% per annum | 7 Years |
| ₹10 – 50 Crore | 3% per annum | 7 Years |
➡️ Additional 1% interest subsidy is offered for agro-based industries, which includes CBG projects utilizing agri waste or animal dung.
3️⃣ Capital Subsidy (for Green Energy Sector)
Under the Green Growth Initiatives of RIPS-2024:
25% capital subsidy on eligible fixed capital investment (EFCI) for renewable-energy-based manufacturing, including biogas and waste-to-energy.
Maximum annual ceiling: ₹50 Crore for large projects (disbursed over 10 years).
4️⃣ Electricity Duty Exemption
100% exemption of electricity duty for 7 years from the date of commercial operation.
This significantly reduces the operational cost for energy-intensive CBG projects.
5️⃣ Stamp Duty & Land Conversion Benefits
75% exemption on stamp duty and conversion charges for land purchase or lease.
Remaining 25% reimbursed by the state government.
Applies to both land purchase and improvement/construction for the plant.
6️⃣ Mandi Fee Reimbursement
100% reimbursement of mandi/market fees for 7 years for CBG plants using agricultural residues, crop waste, or similar raw materials.
7️⃣ Employment Generation Subsidy
To encourage local employment:
Reimbursement of 50% of the employer’s contribution toward EPF and ESI for 7 years, applicable for domiciled employees in Rajasthan.
8️⃣ Green Project Incentive (Add-on under RIPS-2024)
CBG falls under the “Green Sector – Biomass & Waste-to-Energy” category.
Additional incentives include:
Reimbursement of 50% of the cost of environmental infrastructure (ETP, waste treatment, air-pollution control, etc.)
10% subsidy on machinery & equipment using clean production technology
50% consent fee waiver under the Rajasthan Green Rating System
100% exemption from electricity duty for captive renewable-energy generation for 7 years
For MSMEs, the maximum ceiling for green incentives is ₹1 Crore.
9️⃣ Cluster & Common Facility Centre (CFC) Support
For groups of CBG or bioenergy units:
Soft loan up to ₹10 Crore at 5% interest to establish common facilities (testing, recycling, logistics, etc.).
Land is made available at circle rate, with power and water up to boundary wall facilitated by the State.
🔟 Additional Add-On Incentives
| Incentive Type | Description | Limit |
|---|---|---|
| Fund Raising Incentive | 50% reimbursement of fund-raising expenses for SME listing | ₹5 Lakh |
| Skill & Training Incentive | 50% cost reimbursement for employee training (up to ₹30,000 per month for small & ₹40,000 for medium units for 6 months) | One-time |
| IP Creation Support | 75% reimbursement of patent & trademark registration cost | Up to ₹5 Lakh |
| Export Freight Subsidy | 25% reimbursement of freight cost for first-time exporters | Up to ₹25 Lakh per annum |
🌱 Why Rajasthan Is Ideal for CBG Investment
Abundant agricultural residues and cattle dung in districts like Bikaner, Nagaur, Hanumangarh, Sriganganagar, and Jhunjhunu.
Strong policy support through RIPS-2024, Green Growth Mission, and Waste-to-Energy initiatives.
Power evacuation infrastructure, land availability at industrial rates, and ease of approvals through the Single Window System.
💼 Example – Subsidy Estimation for ₹50 Crore CBG Plant
| Particulars | Estimated Incentive |
|---|---|
| SGST Reimbursement | ₹20 – 25 Crore (75% for 10 Years) |
| Interest Subvention | ₹3 – 5 Crore |
| Electricity Duty Exemption | ₹1 Crore (Approx.) |
| Stamp Duty & Conversion | ₹0.75 – 1 Crore |
| Employment Generation Subsidy | ₹0.5 Crore |
| Green Incentive (ETP, Zero-Liquid Discharge) | ₹0.75 Crore |
| Total State-Level Benefit (Approx.) | ₹25 – 30 Crore |
🧭 How to Apply
Register your enterprise on Invest Rajasthan Portal.
Obtain Entitlement Certificate under RIPS-2024 from the Industries Department.
Submit detailed project report (DPR) and financing details.
Begin commercial operations within two years of certificate issuance to claim benefits.
📞 Need Expert Help?
If you are planning to set up a CBG Plant in Rajasthan, Adroit Corporation provides complete consultancy for
✔ Project Feasibility & DPR Preparation
✔ Bank Loan Assistance
✔ RIPS-2024 Subsidy Documentation
✔ Startup & Green MSME Registration
📩 Email: info@adroitcorporation.in
📞 Call: +91 72030 10101 +91 8734 010101
🌐 Website: www.adroitcorporation.in
