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

📌 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