Get 10 Crore Funding From MNRE To Set Up Biogas Plant

The waste to energy programme has been approved under the umbrella scheme of the National Bioenergy Programme to support the setting up of waste to energy projects for the generation of Biogas / Bio CNG / Power /producer or syngas from urban, industrial and agricultural wastes. The program provides central financial assistance to project developers for the successful commissioning of waste to energy plants to generate Biogas, Bio CNG and syngas under 2 types of funding patterns Standard CFA pattern and the Special CFA pattern. Biogas plants will play a vital role in tackling India’s air pollution troubles as biogas can be used as a environmental friendly fuel for automobiles. Emissions from vehicles and industries are the major contributors for the rising air pollution and PM10 limit in India, especially in delhi. Hence, to encourage entrepreneurs and private companies to set up Biogas plant, the Ministry of New and Renewable Energy (MNRE) has launched the waste to energy programme. Read the complete blog to know how to get 10 crore funding to set up biogas plant from waste to energy program.

Funding Pattern to Setup Bio CNG and Biogas Plant:

Standard Central Financial Assistance Pattern:

1. Biogas Production

Funding assistance of INR 25 lakhs is provided for 12000cum/day biogas production. A maximum CFA of INR 5 crore is provided to set up a biogas plant.

2. Bio CNG / Enriched Biogas / Compressed Bio Gas Production:

For BioCNG production from the new biogas plant, INR 4 crore is provided for 4800 Kg per day. Also, to generate Bio CNG from the existing plant, INR 3 crore is provided for 4800 Kg per day. A maximum CFA of 10 crores is provided per project for both cases.

3. Power Generation from Biogas:

The assistance of INR 75 lakhs/MW is provided to set up a new biogas plant and INR 50 lakhs/MW for the existing biogas plant.

4. Power From Bio and Agro-industrial Waste:

INR 40 lakhs is provided per MW.

5. Biomass Gasifier for Electricity/Thermal Applications:

The financial assistance of INR 2,500 per KWe with dual fuel engines is provided for electrical applications. On the other hand, INR 15,000 is provided per KWe with 100% gas engines.

Special Central Financial Assistance Pattern:

1. Special Category States:

For waste to energy plants set up in special category states such as North Eastern states, J&K, Lakshadweep, Ladakh, Andaman and Nicobar islands, financial assistance will be 20% more than the standard CFA pattern.

2. Biomethanation Plants Setup in Gaushala:

For Bio CNG/Biogas plants based on cattle dung is the major feedstock set up by Gaushalas, 20% more CFA will be provided compared to the standard CFA pattern.

Service Charge to Implementing Agency and Inspection Agency:

A service charge of 1% of the total CFA will be provided to implementing agency for receiving and processing applications. For inspection agencies, a service charge of 1% for monitoring.

Terms and Conditions to Get Funding To Set Up Biogas Plant:

Developers should share Bio CNG/ Biogas plant generation data to the Ministry of New and Renewable Energy (MNRE)
Expansion of Plants: Grant of central financial assistance to plants having the intention to add capacity to the existing plants will also be considered only for enhanced capacity by way of installation of new Bio CNG/Biogas plant and machinery.
Biogas plants of size up to 250 Kw capacity are covered under the Biogas program.
Waste to energy plants shall not be eligible for central financial assistance.

Procedure For Availing Central Financial Assistance:

The proposal for the grant of “In-Principle” approval of central financial assistance should be submitted through the BioURJA portal.
Proposals submitted to the Ministry under the waste to energy programme but ‘in -principle approvals will not be accorded.
The applications of projects under the waste to energy programme within 3 months of the date of notification of these guidelines.
An incomplete proposal will be rejected and will be intimated within 60 days. The proposal can be resubmitted before 12th December 2025.

Commissioning of The Bio CNG/ Biogas Plant:

The time period for commissioning is 12 months for Biomass gasifiers and 24 months for WTE plants.
After submission of the application in the BioURJA portal, project developers should inform the commission and accord of “In-Principle” approval of a grant of CFA will be subjected to fulfilment of conditions mentioned in the guidelines.
In case of delay, a suitable extension of time will be granted by the Secretary of MNRE and will be provided with supporting documents.

Process of Biogas Production:

Biogas is renewable and environmentally friendly fuel produced from processing various types of organic waste. Materials such as agriculture waste, industrial waste, spoiled food, etc are delivered to the biogas plant by lorry or waste management vehicle. Biowaste is crushed into smaller pieces and liquid is added for anaerobic digestion. Biomass enters a gradual fermentation process as the microbes feed on the organic matter and turn these into methane and carbon dioxide. Biowaste is heated to 37°c to support the growth of microbes. Microbes feeding on the biomass play a vital role in producing biogas by creating methane which can be used as it is or enhanced to biogas equivalent to natural gas quality for long-distance transportation. Due to anaerobic digestion in large tanks for 3 weeks, biogas production takes place. Obtained gas is purified by removing impurities and CO2 in the final stage.

Are You Looking to Set Up Bio CNG or Biogas Plant?

Energy Consultants claim there is a high possibility that compressed biogas could become the fuel of the future as it is a renewable energy source. If you are looking to set up Bio CNG and Biogas plant, connect with SolutionBuggy and get complete assistance from industry experts. SolutionBuggy handholds you in every step from detailed project report to get funding assistance to complete plant setup.