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:

💡 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

1. Submit Proposal on BioURJA Portal

2. Get In-Principle Approval from MNRE

3. Commission the plant within:

   • 24 months (CBG & Power Projects)

   • 12 months (Biomass Gasifiers)

4. Share performance data for 3 months with minimum 80% Plant Load Factor (PLF) to claim full CFA​.

💰 Disbursement Process

✅ Two Options:

1. After Commissioning:

   • CFA disbursed to your bank or loan account

2. 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.

Rajesh Savaniya