CBG Plant Subsidy: Waste to Energy Programme Guide 2025
The Indian government is supporting clean energy through the CBG Plant Subsidy offered under the Waste to Energy Programme. If you’re planning to set up a compressed biogas (CBG) plant, this guide explains how to benefit from up to ₹10 crore in central financial assistance.
In this blog, we will explore:
What is the CBG Plant Subsidy Under Waste to Energy Programme?
How much CBG Plant subsidy is available?
Who Can Avail CBG Plant Subsidy?
Step-by-step process to claim subsidy
A simple example to understand the subsidy structure
FAQs to clear all your doubts
♻️ What is the CBG Plant Subsidy Under Waste to Energy Programme?
The Waste to Energy Programme (WTE), a part of the National Bioenergy Programme (2021–2026), is designed to encourage industries and entrepreneurs to set up projects that generate Biogas, Bio-CNG (CBG), Power, or Syngas from urban, industrial, and agricultural waste/residues.
🎯 Objectives
Promote clean and renewable energy from waste
Provide financial support to project developers
Reduce reliance on fossil fuels
Generate employment in rural and semi-urban areas
How much CBG Plant subsidy is available?
🧮 Structure of Central Financial Assistance (CFA)
✅ Standard CFA for BioCNG/CBG Projects:
| Type of Plant | CFA (Subsidy) | Maximum CFA |
|---|---|---|
| New Biogas to CBG | ₹4.00 Cr per 4800 kg/day capacity | ₹10.00 Cr/project |
| Existing Biogas to CBG Conversion | ₹3.00 Cr per 4800 kg/day | ₹10.00 Cr/project |
💡 Note: Projects using existing biogas plants will receive lower CFA as some infrastructure already exists.
🎁 Special CFA (20% Higher) For:
Projects in Special Category States (NE, Himachal Pradesh, Uttarakhand, J&K, Ladakh, etc.)
Projects by Registered Gaushalas using cattle dung as feedstock.
📊 Simple Example to Understand the Subsidy
Let’s say you plan a new CBG plant with a daily production capacity of 9,600 kg of CBG.
🔹 As per subsidy rate:
4800 kg/day = ₹4.00 Cr
So, 9600 kg/day = ₹8.00 Cr (on pro-rata basis)
✅ You are eligible for a subsidy of ₹8.00 Cr (subject to ₹10 Cr cap).
If your plant is in a Special Category State, you’ll receive ₹8.00 Cr + 20% = ₹9.60 Cr subsidy.
🧾 Who Can Avail CBG Plant Subsidy?
✅ Eligible applicants include:
Companies, LLPs, Firms, NGOs, Trusts, Cooperatives
SPVs and Joint Ventures
Gaushalas
Local bodies, private developers, and ESCOs
🛠️ Eligible Projects
Biogas, CBG (Bio-CNG), and Biogas-to-Power Projects
Projects must install new machinery
MSW incineration and thermal projects are not eligible
Projects <2500 m³/day biogas capacity fall under the Biogas Programme, not WtE.
📅 Application Process
Submit Proposal on BioURJA Portal
Get In-Principle Approval from MNRE
Commission the plant within:
24 months (CBG & Power Projects)
12 months (Biomass Gasifiers)
Share performance data for 3 months with minimum 80% Plant Load Factor (PLF) to claim full CFA.
💰 Disbursement Process
✅ Two Options:
After Commissioning:
CFA disbursed to your bank or loan account
Advance Subsidy for SATAT-linked Projects:
Up to 50% of CFA released during construction if:
Project is linked with SATAT OMC Agreement
Loan of at least 50% of total cost is taken.
🔍 Project Monitoring
Installation of SCADA/remote monitoring is mandatory
Data must be shared with MNRE or designated agency
Performance Inspection must happen within 18 months of commissioning.
🙋 Frequently Asked Questions (FAQs)
Q1: What is the total budget for Waste to Energy Programme?
👉 ₹600 crore has been allocated under the National Bioenergy Programme Phase-I (2021–2026).
Q2: What kind of waste is eligible for CBG projects?
👉 Fruit & vegetable waste, cattle dung, agro-waste, food industry residue, etc. are eligible.
Q3: Can I get subsidy if I’m converting an existing Biogas plant to CBG?
👉 Yes, you are eligible for ₹3.00 Cr per 4800 kg/day output.
Q4: Is land cost covered in the project cost?
👉 No. CFA is calculated on project cost excluding land.
Q5: What if my plant fails to achieve 80% PLF?
👉 CFA will be reduced:
60-80% PLF: 80% CFA
50-60% PLF: 60% CFA
Below 50%: No subsidy released.
Q6: Is there any benefit for Gaushalas?
👉 Yes. Registered Gaushalas using cattle dung as feedstock get 20% higher subsidy.
🏁 Final Words
Setting up a Compressed Biogas (CBG) plant under the Waste to Energy Programme is not just eco-friendly—it’s also financially rewarding. With up to ₹10 Crore subsidy, streamlined application through BioURJA, and performance-linked disbursal, this is the best time to turn waste into wealth.
