Subsidy for CBG Plant in Maharashtra – Complete Guide (PSI-2019)

Subsidy for CBG Plant in Maharashtra – Complete Guide (PSI-2019)

India is rapidly embracing renewable energy, and CBG Plants (Compressed Biogas Plants) have become the backbone of the nation’s clean energy ecosystem. Maharashtra, being one of the largest agricultural and industrial states, offers massive financial incentives for setting up a CBG Plant under the Package Scheme of Incentives 2019 (PSI-2019).

If you are planning to set up a CBG Plant in Maharashtra, this is the most complete, policy-accurate and updated subsidy guide based on the official PSI-2019 documents and taluka classifications.

1️⃣ Why Maharashtra Is the Best State for Setting Up a CBG Plant?

Maharashtra provides one of India’s highest subsidy structures for renewable energy.

CBG Plants fall under “Green Energy / Biofuel Production” – a Thrust Sector (Para 2.3)

Which means:
✔ 20% extra subsidy over standard limits
✔ 2 additional years of eligibility
✔ Highest benefits in backward regions (D, D+, Naxal, No-Industry districts)
✔ Subsidy up to 100% of Eligible Fixed Capital Investment (FCI)

If your goal is a profitable, long-term CBG Plant, Maharashtra is one of the best destinations.

2️⃣ Eligibility for CBG Plant Subsidy in Maharashtra

Your CBG Plant can qualify under:

A. MSME CBG Plant

If FCI ≤ ₹50 crore

B. LSI / Special LSI CBG Plant

If FCI > ₹50 crore and meets criteria in Table-1

C. Mega or Ultra-Mega CBG Plants

Based on FCI or employment (Table-2)

All categories get incentives – MSME being the most lucrative in backward talukas.

3️⃣ Location-Based Subsidy: Where Your CBG Plant Gets Maximum Benefit

Maharashtra talukas are classified as:

• A – Highly developed

• B – Developed

• C – Less developed

• D – Backward

• D+ – Most backward

• No-Industry Districts – (Hingoli, Gadchiroli)

• Naxal-Affected Areas – (Gadchiroli, Chandrapur, Gondia, Yavatmal etc.)

Best subsidy regions for CBG Plants:

⭐⭐⭐⭐⭐ 100% Subsidy Zones

• Gadchiroli

• Hingoli

• Washim (Aspirational)

• Nandurbar (Aspirational)

• Chandrapur (Naxal)

• Yavatmal (Naxal)

⭐⭐⭐⭐ 80% Subsidy Zones

• Vidarbha

• Marathwada

• Ratnagiri

• Sindhudurg

• Dhule

⭐⭐⭐ 50–60% Subsidy Zones

• D & D+ regions across major districts

This location advantage makes your CBG plant financially far more viable.

4️⃣ Subsidy Structure for CBG Plants Under MSME Category

MSME is the most attractive category for CBG plants.

4.1 Industrial Promotion Subsidy (IPS)

✔ 100% SGST Refund on sales within Maharashtra
✔ Claimed annually
✔ Adjusted against eligible FCI

4.2 Interest Subsidy

✔ Up to 5%
✔ Limited to the annual electricity bill amount

4.3 Electricity Duty Exemption

✔ Available in C, D, D+, No-Industry, Aspirational & Naxal areas
✔ For entire eligibility period

4.4 Stamp Duty Exemption

✔ 100% in C, D, D+, No-Industry, Naxal, Aspirational
✔ On land purchase, lease, and loan documentation

4.5 Power Tariff Subsidy

• ₹1 per unit in backward / special regions

• ₹0.50 per unit in other areas

• For 3 years

4.6 Extra 20% Subsidy for CBG Plants (Thrust Sector Benefit)

Because CBG Plant = Green Energy sector.

✔ 20% extra subsidy on top of normal limits
✔ +2 years extra eligibility

Maximum subsidy cannot exceed 100% of FCI.

5️⃣ Subsidy for Large Scale CBG Plants (LSI / Special LSI)

Industrial Promotion Subsidy

• 50% of SGST for LSI

• 40% of SGST (Net) for Special LSI

Basket of incentives

Depending on taluka category: 25% – 100% of FCI

Locations with maximum subsidy:

• Vidarbha

• Marathwada

• Ratnagiri

• Sindhudurg

• Dhule

• No-Industry districts

• Naxal areas

6️⃣ Mega & Ultra-Mega CBG Plant Subsidy

For large CBG projects (₹200 crore to ₹4000+ crore):

✔ Customizable subsidy package
✔ Extended eligibility
✔ Stamp Duty & Electricity Duty exemption
✔ SGST-linked subsidies
✔ Flexibility based on investment/employment

Approved by:

• High Power Committee (HPC)

• Cabinet Sub Committee

7️⃣ Maximum Subsidy Limits for CBG Plants (MSME)

💡 Example:
If your CBG Plant is in D+ area → 50% + 20% = 70% subsidy
If in No-Industry District → Direct 100% subsidy

8️⃣ Eligible Fixed Capital Investment (FCI) for CBG Plants

Allowed:

✔ Land cost
✔ Civil construction
✔ Digester tanks, pipelines
✔ Biogas purification systems
✔ Compressors, bottling units
✔ CBG storage cylinders
✔ Weighbridge
✔ Testing & R&D facilities
✔ Machinery installation
✔ Pre-operative expenses (up to 10%)
✔ Know-how & technology fees (up to 10%)

Not Allowed:

❌ Vehicles
❌ Solar captive plants (for incentives)

9️⃣ Process to Apply for CBG Plant Subsidy (Step-by-Step)

Step 1 – Before Construction

• Land possession

• MPCB Consent to Establish

• IEM/Udyam Registration

• DPR for CBG Plant

• Apply to Implementing Agency (DIC/JDI/Directorate)

Step 2 – After Commissioning

• First sale bill

• MPCB Consent to Operate

• Apply for Eligibility Certificate (EC)

Step 3 – Annual Subsidy Claim

• SGST paid proof

• Electricity duty / bills

• Bank interest certificate

• Audited balance sheet

• Production & sales data

Subsidy is disbursed year-on-year based on eligibility.

🔟 Best Locations to Set Up a CBG Plant in Maharashtra

Based on Subsidy + Feedstock Availability:

⭐⭐⭐⭐⭐ Top Recommended

• Gadchiroli (100%) – forest biomass

• Chandrapur (100%) – agriculture + biomass

• Yavatmal (100%) – cattle dung + crop waste

• Hingoli (100%) – sugarcane + paddy waste

• Washim (100%) – paddy + agri waste

• Nandurbar (100%) – tribal/agri economy

⭐⭐⭐⭐ Highly Profitable

• Ratnagiri

• Sindhudurg

• Dhule

• Buldhana

• Beed

• Osmanabad

These regions give maximum subsidy + abundant biomass/feedstock.

Conclusion: Why You Must Set Up a CBG Plant Under PSI-2019

Setting up a CBG Plant in Maharashtra under PSI-2019 gives you:

✔ Up to 100% capital subsidy
✔ 20% additional benefit (Thrust Sector)
✔ SGST Refund
✔ Stamp Duty exemption
✔ Electricity Duty exemption
✔ Interest & Power Tariff Subsidies
✔ Strong agricultural & biomass ecosystem
✔ Reduced payback period

This is one of the best subsidy frameworks in India for renewable energy entrepreneurs.

Need Expert Help for CBG Plant Subsidy?

Adroit Corporation offers:

✔ DPR for CBG Plants
✔ Bank Loan (Project Finance)
✔ End-to-end PSI-2019 Subsidy Consultancy
✔ CBG Plant Planning & Financial Viability
✔ Annual SGST Claim Filing Support

Contact:
📧 sales@adroitcorporation.in
📞 7203010101
🌐 www.adroitcorporation.in

Rajesh Savaniya