Government Subsidy for CBG Plants in Uttar Pradesh
Government Subsidy for CBG Plants in Uttar Pradesh
Uttar Pradesh is emerging as one of the leading states in promoting Compressed Bio-Gas (CBG) plants. The state provides attractive subsidies and incentives to encourage entrepreneurs, farmers, and investors to set up waste-to-energy units. These benefits not only make projects financially viable but also support rural income generation, sustainable agriculture, and cleaner energy.
🔑 Key Subsidies for CBG Plants in Uttar Pradesh
1. Subsidy on Biomass Collection Equipment
Farmers, Farmer Producer Companies (FPOs), Co-operative Societies, and Sugarcane Societies are eligible for subsidy on equipment like balers, rakers, and trolleys.
State subsidy: 30% (up to ₹20 lakh) on such equipment through UPNEDA.
This is in addition to the Central Government subsidy under Sub-Mission on Agricultural Mechanization (SMAM).
2. Production-Based Subsidy for CBG Plants
To support project viability, the government provides direct production-linked subsidy:
CBG Plants: ₹75 lakh per ton capacity (up to a maximum of ₹20 crore).
👉 This subsidy can be utilized for plant & machinery, infrastructure, construction, power supply, and transmission systems (excluding land & administrative building costs).
3. Exemptions & Incentives for CBG Projects
Along with capital and production subsidies, CBG projects enjoy fiscal relief:
100% exemption in electricity duty for 10 years.
100% exemption in stamp duty on lease/sale/registration of land.
100% exemption from development charges levied by state development authorities.
For projects with investment of ₹50 crore or more, the government will provide an approach road up to 5 km from the project site.
4. Subsidy for Waste Supply Chain Development
Aggregators supplying biomass to CBG plants can claim 30% subsidy (up to ₹20 lakh) on collection machinery.
A dedicated digital portal and mobile app is being developed for smooth coordination between farmers, aggregators, and developers.
5. Land Support for CBG Projects
Government land on lease at just ₹1 per acre annually (maximum 30 years) for setting up CBG plants and feedstock storage.
Exemption from land ceiling laws and permission for conversion of agricultural land into non-agricultural use for bio-energy projects.
🌱 Why Set Up a CBG Plant in Uttar Pradesh?
Attractive subsidies and fiscal benefits.
Assured feedstock supply chain with FPO and aggregator model.
Option to sell CBG through dedicated pumps or to Oil Marketing Companies (OMCs) under the SATAT scheme.
Bio-manure by-product recognized under Fertilizer Control Order, ensuring an additional revenue stream.
Strong ecosystem for entrepreneurs and investors to enter the green energy sector.
📊 Subsidies & Incentives for CBG Plants in Uttar Pradesh
| Category | Benefit / Subsidy | Maximum Limit |
|---|---|---|
| Biomass Collection Equipment | 30% subsidy on balers, rakers, trolleys (in addition to Central SMAM scheme) | ₹20 lakh |
| Production-Based Subsidy | ₹75 lakh per ton CBG plant capacity | ₹20 crore |
| Electricity Duty Exemption | 100% exemption for 10 years from commercial production | N/A |
| Stamp Duty Exemption | 100% exemption on lease/sale/registration of land | N/A |
| Development Charges Exemption | 100% exemption from charges levied by state development authorities | N/A |
| Approach Road Facility | For projects with ₹50 crore+ investment, approach road up to 5 km will be provided | Actual road construction |
| Land Support | Government land lease at ₹1 per acre annually for 30 years; land ceiling exemption | Based on project capacity |
| Waste Supply Chain Development | 30% subsidy on machinery for registered aggregators (in addition to Central support) | ₹20 lakh |
📌 Conclusion
With capital subsidies, production-based support, tax exemptions, and land benefits, Uttar Pradesh offers a highly favorable environment for setting up Compressed Bio-Gas plants. Investors and entrepreneurs can take advantage of these incentives to build sustainable businesses while contributing to cleaner energy and rural prosperity.
💡 Want expert guidance on setting up a CBG plant and availing subsidies? Book a consultation with our team today! Book Consultation Now
