DEVELOPING

AN EFFECTIVE
STATE-LEVEL
COMPRESSED
BIOGAS
POLICY IN
INDIA
CURRENT STATUS AND
KEY STRATEGIES
POLICY BRIEF
DEVELOPING
AN EFFECTIVE
STATE-LEVEL
COMPRESSED
BIOGAS
POLICY IN
INDIA
CURRENT STATUS AND
KEY STRATEGIES
POLICY BRIEF
Research direction: Nivit Kumar Yadav

Author: Rahul Jain

Editor: Archana Shankar

Cover and Design: Ajit Bajaj

Graphics: Tarun Sehgal

Layout: Kirpal Singh

Production: Rakesh Shrivastava and Gundhar Das

Centre for Science and Environment is grateful to the Swedish International Development
Cooperation Agency (SIDA) for their institutional support.

We are grateful to Bread for the World for their support

© 2024 Centre for Science and Environment

Material from this publication can be used, but with acknowledgement.

Citation: Rahul Jain and Nivit Kumar Yadav 2024, Developing an Effective State-Level
Compressed Biogas Policy In India: Current Status and Key Strategies, Centre for Science
and Environment, New Delhi

Published by
Centre for Science and Environment
41, Tughlakabad Institutional Area
New Delhi 110 062
Phone: 91-11-40616000
Fax: 91-11-29955879
E-mail: [email protected]
Website: www.cseindia.org

4
 CONTENTS

1. INTRODUCTION 6

2. PRESENT SCENARIO OF CBG PROJECTS IN THE COUNTRY 7

3. STATUS OF BIOENERGY POLICY IN INDIAN STATES 10

4. KEY HIGHLIGHTS OF THE STATES' BIOENERGY POLICIES 13

4.1 Uttar Pradesh Bioenergy Policy 2022 13
4.2 Bihar Biofuels Production Promotion Policy, 2023 14
4.3 Gujarat State Biotechnology Policy 14
4.4 Haryana Bioenergy Policy 15

5. COMPARATIVE ANALYSIS OF STATES' BIOENERGY

POLICIES 16

6. INTERNATIONAL BEST PRACTICES 19

7. KEY POINTS TO CONSIDER WHILE DRAFTING

A STATE’S CBG POLICY 23
7.1 Maintaining a continuous supply of feedstock to the CBG plant 23
7.2 Ensuring complete gas offtake from the CBG plant 28
7.3 Ensuring bio-slurry offtake from the CBG plant 29
7.4 Support during installation of the CBG plant 30
7.5 Technical assistance or operational support 31

5
 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

1. INTRODUCTION
In recent months, the Indian government has implemented several
policy changes to boost growth and investment in the compressed
biogas sector. Policies such as the Ministry of Petroleum and Natural
Gas’s Sustainable Alternative Towards Affordable Transportation
(SATAT) scheme and the Ministry of New and Renewable Energy’s
National Bioenergy Programme aim to produce 15 million metric
tonnes of compressed biogas (CBG) from 5,000 plants nationwide
by 2030. The integration of various types of financial assistance
has encouraged private sector participation to increase the
adoption of compressed biogas, a cleaner alternative to natural
gas. Internationally, the Global Biofuel Alliance was launched
in September 2023 under India’s G20 leadership, involving 24
countries and 12 international organizations. This initiative
seeks to advance the development and deployment of biofuels,
positioning them as crucial for energy transition and contributing
to job creation and economic growth.

Compressed biogas is produced from waste biomass sources like

agricultural residue, cattle dung, sugarcane press mud, municipal
solid waste, and sewage sludge through the process of anaerobic
decomposition. CBG stands as a promising technology for clean
energy production within a circular economy framework, offering
the opportunity to decrease imports, manage waste, and mitigate
greenhouse gas emissions.

Despite its many advantages, the adoption of CBG projects has been
sluggish, with only 97 operational CBG projects by July 2024, far
short of the target of 5,000 plants. A significant challenge hindering
the growth of CBG in the country is the ineffective implementation
of policies at the state level.

Currently, despite having good CBG potential, many states

lack supportive policies and are uncertain about the necessary
incentives. Rather than tailoring policies to their unique
strengths, they often replicate existing ones. Consequently,
several states have sought policy advocacy from the Centre for

6
Science and Environment (CSE) in this area. To bridge this gap,
CSE has developed a policy brief that highlights essential factors
for designing state-specific policies supportive of compressed
biogas. The brief also examines current bioenergy policies and
incorporates international best practices to aid in informed policy-
making for different state governments and state renewable
energy nodal agencies.

2. PRESENT SCENARIO OF CBG

PROJECTS IN THE COUNTRY
Table 1 presents the current status of CBG projects across various
states and Union territories in India. Out of the 677 projects regis-
tered nationwide, 408 have yet to begin construction, 172 are cur-
rently under construction, and 97 are operational. Approximately
60 per cent of the registered projects have not commenced, likely
due to factors such as lack of funding, slow regulatory approvals,
difficulties in sourcing feedstock, or technological challenges. The
states with the highest number of projects in the pipeline are Uttar
Pradesh, Maharashtra, Punjab, Madhya Pradesh, and Haryana.
Gujarat leads with the highest number of operational plants (17),
followed by Uttar Pradesh (15) and Haryana (10). Interestingly, all
these three states have a state-level bioenergy policy in place (see
Table 1: Status of compressed biogas [CBG] plants across different
states of India).

7
 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

Table 1: Status of compressed biogas (CBG) plants across different states of India
State/Union territory CBG plants registered
Yet to start Construction Completed Functional Total
construction in progress
Andaman and Nicobar Islands 0 0 0 0 0
Andhra Pradesh 15 8 0 5 28
Arunachal Pradesh 0 0 0 0 0
Assam 3 1 0 0 4
Bihar 14 9 0 0 23
Chandigarh 1 0 0 0 1
Chhattisgarh 11 2 0 1 14
Dadra and Nagar Haveli and 0 0 0 0 0
Daman and Diu
Delhi 0 5 0 0 5
Goa 0 0 0 0 0
Gujarat 14 10 0 17 41
Haryana 27 14 1 10 52
Himachal Pradesh 1 0 0 0 1
Jammu and Kashmir 1 0 0 0 1
Jharkhand 2 4 0 0 6
Karnataka 11 6 1 7 25
Kerala 2 0 0 0 2
Ladakh 0 0 0 0 0
Lakshadweep 0 0 0 0 0
Madhya Pradesh 28 10 0 5 43
Maharashtra 70 20 2 8 100
Manipur 0 0 0 0 0
Meghalaya 0 0 0 0 0
Mizoram 0 0 0 0 0
Nagaland 0 0 0 0 0
Odisha 10 6 0 0 16
Puducherry 0 0 0 0 0
Punjab 56 13 0 8 77
Rajasthan 12 8 0 5 25
Sikkim 0 0 0 0 0
Tamil Nadu 23 6 0 8 37
Telangana 14 6 0 4 24
Tripura 0 0 0 0 0
Uttar Pradesh 78 33 2 15 128
Uttarakhand 7 2 0 2 11
West Bengal 8 3 0 2 13
Total 408 166 6 97 677
Source: https://gobardhan.co.in/

8
Map 1: Total upcoming and functional CBG plants in different states of India

Functional Total
1
8 | 77 Jammu and
Punjab Kashmir

1
1 Himachal 2 | 11 23
Chandigarh Pradesh Uttarakhand Bihar

10 | 52
Haryana

5 Delhi 15 | 128
Uttar
Pradesh 4
Assam
5 | 25
Rajasthan

17 | 41
Gujarat

5 | 43
Madhya Pradesh 2 | 13
West Bengal
8 | 100
Maharashtra 6
Jharkhand

16
Odisha
7 | 25
Karnataka 1 | 14
Chhattisgarh
4 | 24
Telangana
5 | 28
Andhra Pradesh
2 8 | 37
Kerala Tamil Nadu

9
 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

3. STATUS OF BIOENERGY
POLICY IN INDIAN STATES
India’s renewable energy policy framework at the state level is
quite fragmented. Some states have a comprehensive renewable
energy policy, others have distinct policies for solar, hydro, and
bioenergy, and a few have no policies at all (see Table 2: Status of
renewable energy and bioenergy policies in Indian states). Notably,
Bihar, Uttar Pradesh, Gujarat, and Haryana have separate bioenergy
policies that include CBG. In contrast, Karnataka, Madhya Pradesh,
and Maharashtra have integrated some aspects of biogas into their
renewable energy policies, but they focus on producing electricity
from biogas rather than biomethane.

Despite having significant CBG potential, states like Maharashtra,

Punjab, Madhya Pradesh, and Tamil Nadu lack a dedicated
bioenergy policy, which could hinder the development of CBG
plants due to the absence of a structured framework. The table also
indicates that only a few states have a comprehensive renewable
energy policy; most states, such as Chhattisgarh, Tamil Nadu,
and Uttarakhand, have individual policies for solar, wind, or
hydropower.

Table 2: Status of renewable energy and bioenergy policies in

Indian states
State State’s RE policy Key highlights if biogas Bioenergy Nodal agency for
is part of RE Policy policy name implementation of
and year bioenergy policy
Andhra AP Renewable Energy - -
Pradesh Export Policy, 2020; Solar
Power Policy 2018; Wind
Power Policy 2018; Wind
Solar Hybrid Power Policy
2018
Arunachal - - -
Pradesh
Assam Assam RE Policy, 2022 - -
Bihar Bihar Policy for Promotion Bihar Biofuels Department
of Bihar New & Renewable Production of Industries,
Energy Sources 2017 Promotion Government of
Policy, 2023 Bihar

10
State State’s RE policy Key highlights if biogas Bioenergy Nodal agency for
is part of RE Policy policy name implementation of
and year bioenergy policy
Chhattisgarh Wind Energy Policy 2006; - -
State Solar Energy Policy
2017; Small Hydro Policy
2006
Goa Sate Solar Policy 2017 - -
Gujarat Gujarat RE Policy 2023; 1. Gujarat Waste-to- Gujarat State Gujarat State
Small Hydel Policy 2016; Energy-Policy-2022 Biotechnology Biotechnology
2. Waste-to-energy- Policy, 2022 Mission
related projects are
incentivized to tackle
municipal solid waste to
generate electricity
Haryana Solar Power Policy 2016 Haryana Bio- Haryana
energy Policy, Renewable Energy
2018 Development
Agency (HAREDA)
Himachal Himachal Energy Policy - -
Pradesh 2021; Solar Power Policy
2016
Jharkhand State Solar Policy 2022 - -
Karnataka Karnataka RE Policy 2022; 1. Under the policy, - -
Solar Policy 2014 incentives are available
for co-generation and
waste-to-energy plants
that aim to convert
biogas into electricity
Kerala RE Policy 2002; Solar - -
Energy Policy 2013
Madhya Madhya Pradesh RE Policy 1. Incentives for - -
Pradesh 2022; sHydro (2011), Wind community based biogas
(2012), Solar (2012) manufacturing
2. Exemption in
Electricity Duty and
Energy Development Cess
3. 50 per cent
reimbursement on stamp
duty
4. Government land,
if available, shall be
provided on concessional
rate (rebate of 50 per
cent on circle rate) to
developers

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

State State’s RE policy Key highlights if biogas Bioenergy Nodal agency for
is part of RE Policy policy name implementation of
and year bioenergy policy
Maharashtra RE Policy 2020; Green 1. State-level support for - -
Hydrogen Policy 2023 biogas to electricity
2. The financial assistance
of Rs 40,000 per kW is
available for biogas-based
power in the range of
3-250 kW capacity
Manipur RE policy 2006 - -
Meghalaya - - -
Mizoram Solar Power Policy 2017 - -
Nagaland - - -
Odisha Odisha RE Policy 2022 - -
Punjab Punjab New and Renewable 1. Land stamp duty and - -
Sources of Energy Policy registration charges
(2012), Net Metering Policy exempted
for Rooftop SPV Power 2. Panchayat land
Plants available for projects on
long-term lease basis
3. Electricity duty
exempted during the
construction and testing
period
Rajasthan Rajasthan RE Policy 2023; - -
Green Hydrogen Policy 2023
Sikkim Grid Connected Rooftop - -
Solar Photovoltaic System
Policy (2019)
Tamil Nadu Solar Energy Policy 2019 - -
Telangana Telangana Solar Power - -
Policy 2015
Tripura - - -
Uttarakhand UK State Solar Policy 2023; - -
Development of Micro &
Mini Hydro Power Projects
upto 2 MW 2015
Uttar Pradesh UP Solar Energy Policy Uttar Pradesh Uttar Pradesh
2022; Solar Rooftop Bioenergy New & Renewable
Programme, Green Hydrogen Policy, 2022 Energy
Policy 2024 Development
Agency (UPNEDA)
West Bengal Policy on Co-generation and - -
Generation of Electricity
from Renewable Sources of
Energy 2012

12
4. KEY HIGHLIGHTS OF THE
STATES' BIOENERGY POLICIES
4.1 UTTAR PRADESH BIOENERGY POLICY 2022
The Uttar Pradesh Bioenergy Policy released in October 2022
provides for various enablers to promote bioenergy production,
particularly focusing on CBG. The policy offers a subsidy of Rs 75
lakh per tonne of CBG production capacity, capped at Rs 20 crore per
project. Government-owned land can be leased at a nominal rate
of Rs 1 per acre per year to set up CBG plants and store feedstock.
Development fees, stamp duty, and electricity duty are fully
waived to reduce initial costs. Additionally, economic assistance
is provided through an infrastructure subsidy for constructing up
to 5 km of approach roads, with a maximum investment limit of
Rs 50 crore.

To support the acquisition of balers, rakers and trolley equipment, a

state subsidy of 30 per cent of the cost, up to Rs 20 lakh, is available.
The policy also includes provisions for land-use alterations and
exemptions from the Land Ceiling Act. A Bioenergy online portal
has been created to streamline the application process, offering
a unified platform for investors with a single-window clearance
system. The policy mandates the installation of one bio-plant in
each tehsil, with the tehsil designated as the catchment area for
the bioenergy plant. The Agriculture Department will facilitate
the formation, training and capacity building of farmer producer
organizations (FPOs) within these catchment areas to ensure a
steady supply of agricultural waste to CBG plants and to secure
long-term supply contracts with a letter of intent holders. A project
officer will be deployed in each district to assist investors and serve
as the primary contact for obtaining necessary approvals from the
district magistrate’s office. Additionally, a district-level committee
will be constituted to make agricultural waste readily available to
investors at market prices. The Agriculture Department and State
Agricultural Universities will promote the research, marketing
and distribution of organic manure produced by CBG units, further
integrating bioenergy into the state’s agricultural economy.

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

4.2 BIHAR BIOFUELS PRODUCTION PROMOTION

POLICY, 2023
The Bihar Biofuels Production Promotion Policy, 2023, was
designed to enhance the state’s investment landscape for CBG
manufacturing. The policy provides a capital subsidy of 15 per cent
of the cost of plant and machinery, capped at Rs 5 crores. The policy
also offers a 100 per cent exemption on stamp duty, registration
fees and land conversion fees to reduce costs further. An interest
subvention incentive is provided at 10 per cent of the term loan
for five years, with an upper limit of 50 per cent of the project cost
or Rs 20 crore. Additionally, tax-related incentives include a 100
per cent SGST reimbursement and a 100 per cent electricity duty
reimbursement for five years, with a maximum limit equivalent
to the total project cost. A skill development subsidy of Rs 20,000
per employee is available to train candidates domiciled in Bihar
to promote local employment. The policy also simplifies the
application process through a single-window clearance portal.
Moreover, the policy emphasizes human resource development
by encouraging the government and other institutions to run
awareness programmes, training and capacity-building initiatives
to ensure the availability of trained manpower at all levels within
the bioenergy sector.

4.3 GUJARAT STATE BIOTECHNOLOGY POLICY

The policy aims to support 500 biotechnology units and create over
1.2 lakh jobs in the biotechnology sector, including areas such as
biofuels and biofertilizers. The policy offers capital assistance of
25 per cent of capital investments, with a ceiling of Rs 40 crore,
disbursed in 20 quarterly instalments over five years. Additionally,
operational assistance is provided at 15 per cent of expenses,
capped at Rs 5 crores per annum. To streamline the establishment
of new units, a ‘Single Window Clearance Mechanism’ has been
established to grant necessary approvals and clearances. The
policy also includes a 100 per cent reimbursement of electricity duty
on power purchased from state electricity distribution companies
or power distribution licensees for a period of five years. Interest
subsidies on term loans are available at 7 per cent for borrowings

14
up to Rs 100 crore, with a ceiling of Rs 7 crore per annum, and
an additional 3 per cent for borrowings above Rs 100 crore, with
an overall ceiling of Rs 20 crore per annum or the actual interest
paid, whichever is lower. The policy introduces an Employment
Generation Incentive titled AatmaNirbhar Gujarat Rojgar Sahay,
offering benefits of up to 50 per cent of CTC, with a maximum of
Rs 50,000 per male employee and Rs 60,000 per female employee.
This incentive is available to applicants for local employees who
have completed at least one year of employment with the unit.
The Gujarat State Biotechnology Mission has been designated as
the nodal agency responsible for the implementation, support and
coordination between various government departments to ensure
the policy’s effective execution.

4.4 HARYANA BIOENERGY POLICY

The Haryana Bioenergy Policy designates the Haryana Renewable
Energy Development Agency (HAREDA) as the nodal agency
responsible for facilitating bioenergy projects and implementing
the policy. The policy allows the government of Haryana to facilitate
the lease of panchayat land at reasonable rates for a minimum
period of 35 years to set up biomass projects. Agricultural land
is also permitted for use in establishing biomass-based projects
within the state. To support the efficient collection of biomass
for approved projects, the policy provides reapers, balers and
trawlers either on rent or through an upfront subsidy. To ensure
a consistent and continuous supply of biomass, the Department of
Agriculture and Farmer Welfare has been designated to carry out
area demarcation, ensuring that proposed projects do not conflict
with other agricultural initiatives. The capacity of these projects
is capped at 80 per cent of the feedstock availability in the district,
as determined by the biomass assessment report. The policy
offers exemptions from land use approval, external development
charges, scrutiny fees, and infrastructure development charges.
Additionally, there is a 100 per cent exemption from entry tax on
all supplies, including capital goods, structures, and raw materials,
necessary for setting up and trial operations of the projects. The
Agriculture and Farmer Welfare Department, along with state

15
 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

agriculture universities, will promote organic fertilizers produced

by these projects, provided they meet specified standards. State
Agriculture Universities will conduct trials to document results
without charging any fees. The State Transport Department will
also encourage the use of biofuels in public transport vehicles. The
policy includes an offline application system with an associated
application fee, a non-refundable scrutiny fee, and a performance
security fee.

1.5 COMPARATIVE ANALYSIS OF

STATES' BIOENERGY POLICIES
State governments in Bihar, Gujarat, Uttar Pradesh and Haryana
provide various subsidies and benefits to promote CBG. However,
there are notable gaps and inconsistencies in these policies. For
instance, Haryana does not offer any capital assistance to CBG
producers, while Gujarat stands out by providing operational
assistance, which is not available in Uttar Pradesh, Bihar and
Haryana.

Interest subvention is another area where policies are lacking;

neither Uttar Pradesh nor Haryana mention any relief or subsidies
for interest. Tax benefits such as 100 per cent GST reimbursement
are available in Bihar, Uttar Pradesh and Haryana, but not in
Gujarat. However, all four states offer exemptions from stamp duty
and registration fees.

Regarding electricity duty, Bihar and Gujarat reimburse it for five

years, and Uttar Pradesh does so for ten years, whereas Haryana
does not provide any reimbursement. Land assistance varies
significantly: Uttar Pradesh offers land at Rs 1 per acre per year,
and Haryana facilitates leasing panchayat land at reasonable rates
for biomass projects for a minimum of 35 years. In contrast, Bihar
and Gujarat do not offer land assistance.

Employment incentives are available only in Bihar and Gujarat,

with Bihar also providing a skill development subsidy of Rs

16
 20,000 per employee. Infrastructure support, such as approach
road facilities and catchment area provisions, is present in Uttar
Pradesh and Haryana’s policies but absent in Bihar and Gujarat.

This table examines the CBG policy scenario in four Indian states:
Bihar, Gujarat, Uttar Pradesh, and Haryana. Among the following
states, Uttar Pradesh emerges as the one with the most ambitious
policy, as it not only offers a high subsidy of 75 lakh/ton of CBG
capacity but also offers land assistance, approach road facility,
an online portal for application and ensures a continuous supply
of feedstock by permitting only one bioenergy plant per tehsil.
Bihar, Gujarat, and Uttar Pradesh all offer significant subsidies for
bioenergy production, while the state of Haryana is lagging behind.
Haryana neither offers financial incentives to producers nor
provides an online portal for application or employment support.

In summary, while there is various support for CBG across states, the
extent and nature of these benefits vary widely. Uttar Pradesh offers
the most comprehensive support, including land, electricity duty
reimbursement, and infrastructure. Most states lack capital and
operational assistance, interest subvention, and skill development
subsidies. Tax benefits and exemptions are universally provided,
but their specifics and durations differ significantly.

Table 3: Comparative analysis of states’ bioenergy policies

Parameter Name of state

Bihar Gujarat Uttar Pradesh Haryana

Capital Up to 15 per cent of 25 per cent of Eligible Gross Subsidy of 75 lakh/ N/A
assistance the cost of plant and Fixed Capital Investment tonne of CBG production;
machinery (max. Rs 5 (eGFCI) capped at a max of Rs
crore), higher for priority 20 crore
groups (max. Rs 5.25 crore)
Operational N/A 15 per cent of the cost N/A N/A
assistance incurred; capped at Rs 25 crore
Interest 10 per cent of term loan Interest subsidy at 7 per cent N/A N/A
subvention for 5 years (max Rs. 20 for borrowings up to 100 cr
crores) (capped at Rs 7 crore/annum)

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

Parameter Name of state

Bihar Gujarat Uttar Pradesh Haryana

Tax benefits 100 per cent state N/A 100 per cent 100 per cent
goods and service tax reimbursement of state exemption from entry
reimbursement for 5 years goods and service tax for tax with respect to
(capped at 100 per cent of 10 years all supplies (including
project cost, 80 per cent capital goods,
SGST reimbursement for structure, and raw
priority sectors) materials) made for
setting up and trial
operations of the
projects
Registration/ 100 per cent exemption Stamp duty and registration 100 per cent exemption 100 per cent
stamp duty and of stamp duty and fee paid towards purchase/ on stamp duty payable exemption from
land conversion registration fees; 100 per lease/transfer of land and/ on rent deed/lease/sale payment of fees and
fee cent exemption of Land or office space and fee paid deed/registration stamp duty charges
conversion fees towards conversion of land is
exempted
Electricity duty 100 per cent 100 per cent reimbursement 100 per cent exemption N/A
reimbursement for five for five years in electricity duty for 10
years years
Land assistance N/A Facilitation for land Land on lease at a Assistance in lease of
identification minimal rate (Rs 1/acre/ panchayat lands
year)
Employment 50 per cent reimbursement 100 per cent reimbursement N/A N/A
incentives (in the case of male of EPF scheme in the case of
workers) and 100 per cent females and 75 per cent in the
reimbursement (in the case of males for five years;
case of female workers) up to 50 per cent of CTC with
on account of EPF and ESI caps of Rs 50,000 per male
Scheme for five years; skill and Rs 60,000 per female
development subsidy of Rs employee, for local employees
20,000 per employee after one year of employment
Approach road N/A N/A If an entrepreneur N/A
invests Rs 50 crore or
more in a bioenergy
plant, he/she will be
given the facility of an
approach road up to a
maximum of 5 km from
the unit to the main road
Catchment area N/A N/A One bioenergy plant per Department of
tehsil Agriculture and
Farmer Welfare
to carry out area
demarcation
Online portal for Yes Yes Yes (https://www. No
application (https://swc2.bihar.gov.in) (https://btm.gujarat. upneda.in/bio/)
gov.in/bt-policy-new.htm)
Duration of July 10, 2023–June February 15, 2022–March 31, October 2022–October March 2018–not
policy 30, 2025 2027 2027 defined

18
6. INTERNATIONAL BEST
PRACTICES
The development of biogas varies globally, influenced not just by
the availability of feedstocks but also by supportive policies. Europe,
China and the United States collectively contribute to 90 per cent of
global biogas production (IEA). Europe leads in biogas production,
with Germany holding the largest share, accounting for two-thirds
of Europe’s biogas plant capacity. Other European nations like
Denmark, France, Sweden, Italy, Finland and the Netherlands have
also actively promoted biogas production. Approximately half of
the remaining global production is from developing countries in
Asia, particularly Thailand and India.

Broadly, effective implementation is associated with setting

ambitious production targets, providing economic subsidies,
putting blending mandates, facilitating international trade,
developing gas quality standards, designing the framework for the
use of byproduct digestate in terms of regulations, standards and
certifications, introducing financial de-risking measures such as
public–private partnerships and providing monetary awards in
terms of green attributes or certificates.

The classic example of ambitious target setting is Denmark,

which aims to replace 100 per cent of its natural gas consumption
with biomethane by 2030. To encourage market growth, France
has implemented cost-sharing between the biomethane gas
grid-operators and the biomethane plant owners. Additionally,
France’s ‘zoning’ approach allows multiple biomethane producers
in the same area to share a common gas network injection facility,
resulting in economies of scale and reduced connection costs. To
maintain healthy economic margins for CBG producers, gas feed-
in tariffs are adjusted for inflation. France also plans to transition
the entire Paris bus fleet to biomethane or electric by 2025 to reduce
emissions and enhance public transportation sustainability.
In Germany, renewable energy producers receive guaranteed
remuneration, usually through long-term contracts of 20 years.
Like France, Germany divides the costs of injecting biomethane

19
 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

into the gas grid, with the plant operator covering 25 per cent and
the gas grid operator covering 75 per cent of construction costs.
Berlin’s Municipal Waste Authority uses biomethane from organic
waste to power 150 waste-collection vehicles, promoting a circular
economy with minimal fuel transportation charges. Furthermore,
to avoid the food-vs-fuel debate, Germany limits the use of corn
and grains for biomethane installations to 40 per cent.

Italy supports the biomethane sector with economic subsidies,

including capital grants covering up to 40 per cent of construction
costs for new biomethane plants and an incentive tariff for net
biomethane production over 15 years. The UK government aims for
10 per cent biomethane in the gas grid by 2025 and has introduced
renewable gas guarantees of origin for green certification of each
unit of biomethane injected into the grid. The Netherlands targets
a 20 per cent biomethane blending rate by 2030 and has a subsidy
programme for low-carbon technologies. Sweden offers investment
support of up to 45 per cent for greenhouse gas reduction measures,
including biomethane plants and bio-LNG filling stations. Finland
provides subsidies for biomethane plants and incentives for CNG
and LNG vehicles and fuel stations (see Table 4: Compressed biogas
supportive policies and best practices in diffreent countries).

20
Table 4: Compressed biogas supportive policies and best practices in different
countries
Country Policies and best practices

• The French biomethane industry is witnessing significant growth and has upgraded its goal to 20 per
cent renewable gas—it was previously 10 per cent—by 2030.
• Clarifying the responsibility for gas grid connection costs can aid market expansion. In numerous
markets, this responsibility is unclear, often leaving producers to cover the full capital costs.
However, in France, these costs are distributed between the biomethane plant owner and the gas
network operator.
• Network planning plays a crucial role in identifying future needs by comparing biomethane
feedstock availability to current gas networks. This process helps pinpoint optimal locations
for plant development and highlights regional grid-development requirements. Additionally, the
potential for multiple producers in the same area to share a common gas network injection facility
can yield economies of scale and lower connection costs. In France, this has been facilitated through
France
a ‘zoning’ approach.
• Distribution System Operators (DSOs) and Transmission System Operators (TSOs) cover up to 60
per cent of the costs of connecting to the distribution and transmission grids.
• Feed-in tariffs (FiTs), designated for smaller projects, are adjusted for inflation to ensure that CBG
producers maintain healthy economic margins.
• Starting in 2026, the French government plans to introduce a biomethane production certificate
programme. This initiative aims to support and incentivize the production of biomethane by issuing
certificates to producers, thereby incentivizing them for the green attributes.
• The European Commission aims to achieve a complete shift of Paris’s bus fleet to compressed
biogas or electric buses by 2025. This target is part of efforts to decrease emissions and enhance
the sustainability of public transportation in the city.
• Germany has the largest biogas production capacity in Europe. Growing efforts to reduce carbon
dioxide emissions from fuels are forcing producers to switch to biofuels.
• The Federal Immission Control Act (BlmSchG) sets greenhouse gas (GHG) reduction quotas for
fuel suppliers, requiring an 8 per cent reduction in 2023, increasing to 25 per cent by 2030. Fuel
providers exceeding a certain GHG intensity will face a penalty of Euro 600 per metric tonne of
CO2. This regulation also incentivizes fuel providers to sell bio-CNG and LNG to meet these targets.
• Carbon intensity-based policies can encourage the adoption of biomethane. Germany’s Climate
Protection Quota allows low-carbon fuels to compete based on their cost-effectiveness in
contributing to annual road transport emissions reduction targets.
Germany
• Germany provides guaranteed remuneration for each unit of renewable energy produced, typically
through long-term contracts. New qualifying plants receive a fixed feed-in tariff for 20 years from
the start of their operations.
• Tax exemptions are granted to incentivize purchases of compressed biogas (CBG) for Combined
Heat and Power (CHP), heating, and vehicle fuel purposes.
• In Germany, the costs for injecting biomethane into the gas grid are divided; the plant operator
covers 25 per cent of the construction costs, while the gas grid operator covers 75 per cent.
• Biomethane installations are restricted to using a maximum of 40 per cent corn and grains as
feedstock
• Italy has allocated almost Euro 2 billion to promote the development of biomethane as part of
the National Post-Covid Recovery and Sustainability Plan. In September 2022, new biomethane
regulations introduced two financial mechanisms aimed at boosting production: a support system
for capital investments and a new incentive tariff mechanism.
Italy • In 2022, fuel suppliers must incorporate 10 per cent biofuels into their products, with 2 per cent
specifically designated as biomethane. To achieve these goals, suppliers can purchase Certificates of
Supply for Consumption (CICs).
• A capital grant of up to 40 per cent of construction costs for new biomethane plants.
• An incentive tariff applied to the net production of biomethane for a period of 15 years.

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

Country Policies and best practices

• Since the introduction of feed-in tariffs in 2012, Denmark's biomethane sector has expanded rapidly.
By 2022, biomethane constituted 19 per cent of the country’s gas consumption. By September
2023, this figure had risen to 39 per cent. Denmark aims to replace natural gas consumption with
biomethane by 2030 entirely.
Denmark • The sharing of gas grid costs between biomethane plant owners and gas network operators
includes the network operators covering expenses for compression and quality conditioning.
• In Denmark, biogas plants are categorized into four types: agricultural, sewage, industrial and
landfill plants. Agricultural plants constitute about 85 per cent of biogas production, with future
production expansions expected primarily at these facilities.
• Feed-in tariff policies have been instrumental in promoting growth in key biomethane markets.
Implementing mechanisms for budgetary control and flexibility to adjust tariffs in response to
production cost changes are crucial aspects of these policies. These principles are exemplified in the
UK’s Green Gas Support Scheme (GGSS), initiated in 2021. The GGSS provides tariff-based support
for biomethane generated via anaerobic digestion and injected into the grid from November 2021 to
November 2025.
United Kingdom
• Renewable Gas Guarantees of Origin (RGGOs) are distinctive markers assigned to each unit of
biomethane injected into the grid, recorded within the Green Gas Certification Scheme.
• A quota system that supports biomethane use in transportation is called the Renewable Transport
Fuel Obligation (RTFO), which is an obligation on suppliers of fossil petrol and diesel to supply a
certain percentage of renewable fuel to the UK market.
• The UK government aims to achieve a target of 10 per cent biomethane in the gas grid by 2025.
• The country aims to achieve a production target of 2 billion cubic metres (21 TWh) by 2030 and
attain a 20 per cent blending rate of biomethane by the same year
• The Sustainable Energy Production and Climate Transition Incentive Scheme (SDE++ scheme) is a
Netherlands subsidy programme aimed at supporting low-carbon power technologies and CO2 sequestration.
Funding is distributed over 12–15 years, depending on the technology involved. The amount granted
is calculated based on the energy produced by the facility or the emissions avoided through the
technology, and biomethane projects are included under this scheme.
• Sweden has a robust biomethane sector, with the transport industry being the primary consumer.
The Swedish government is supposed to roll out a new strategy encompassing long-term support
measures and a goal of producing 10 TWh of biomethane by 2030.
Sweden
• The local Climate Investment Programme (2015–26) provides investment support of up to 45 per
cent for all types of GHG reduction measures, including support for bio-CNG plants and bio-LNG
filling stations.
• Biogas and biomethane development are pivotal in Finland’s climate and energy strategy. The
national goal set in 2021 aims to achieve 4 TWh of domestic biogas and biomethane production by
2030. New mechanisms like the national Guarantee of Origin system and investment subsidies have
been introduced to support this target.
Finland
• Upon becoming operational, biomethane plants can receive investment subsidies covering up to 25
per cent of the total project cost, with potential increases to 40 per cent for projects involving new
technologies.
• Subsidies are made available for CNG and LNG vehicles as well as refuelling stations

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7. KEY POINTS TO CONSIDER
WHILE DRAFTING A STATE’S
CBG POLICY

7.1. MAINTAINING A CONTINUOUS SUPPLY OF

FEEDSTOCK TO THE CBG PLANT
A1: Agricultural residue

Challenge:
The primary issues with agricultural residue include the absence of
efficient machinery for timely harvesting, lack of biomass storage
facilities, outdated data on biomass availability at the district level,
and failure to recognize farmers as critical shareholders in biomass
aggregation and bioenergy projects. This oversight leads to flawed
financial models and project failures. Additionally, companies
struggle to determine biomass pricing until the tender process
is completed, often finding that the lowest bids are still too high.
This issue arises because bidders previously did not adequately
address supply chain risk mitigation. When risks were considered,
prices increased. Private entities have either managed biomass
aggregation themselves with limited success or hired aggregation
companies at higher costs and risks.

The lack of state-level implementation of central policies further

slows sector growth, increasing risks and deterring investors and
developers. Various ministries roll out schemes without adequate
inter-ministerial coordination, leading to biomass shortages
in certain regions. This lack of zoning for large-scale projects
hampers structured growth in the bioenergy sector, raising risks
in the upstream value chain for compressed biogas (CBG).

Recommendations:
 Farmer Producer Organizations (FPOs) and self-help groups
(SHGs) are vital to the feedstock supply chain. They should be
made shareholders in bioenergy plants and receive necessary

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COMPRESSED BIOGAS POLICY IN INDIA

training for feedstock collection. Prioritizing them as biomass

aggregators and offering incentives for residue management
machinery is essential.
 Support is needed for biomass depots where farmers can deliver
biomass, thereby aiding industrial development in rural India.
Government entities like the National Bank for Agriculture and
Rural Development and the National Agricultural Cooperative
Marketing Federation of India Limited should establish
advanced warehousing infrastructure. These storage facilities
could also serve as exchange points for biomass and organic
fertilizers, boosting supply chains and creating village-level
employment. They can be leased to farmers and biomass
aggregators at affordable rates, with the option to develop these
warehouses through public-private partnerships (PPP).
 A combined effort is required to promote the manufacture of
post-harvest machinery and tools in India to drive large-scale
growth in the bioenergy sector. Tax waivers on agri-residue
management machines should be provided to support this
manufacturing process. Setting up Custom Hiring Centres in
districts with abundant agricultural residue could further
improve the efficiency of crop residue management.
 With many industries seeking biomass, certain regions may
face biomass scarcity, especially agricultural residue, which
could spread to other areas. To prevent this, policies should
mandate one bioenergy plant per tehsil/block/district. A
second plant should only be permitted if it uses a different type
of feedstock than the existing plant.
 Using the latest technologies, such as satellite imagery, identify
crop residue sites within the state. Maintain a state waste
atlas with decentralized, district-wise data, updating it every
five years to pinpoint hotspot districts. Make this information
publicly available online.
 District-biofuel committees, led by the district magistrate, should
be established to enhance coordination among stakeholders
and prioritize dispute resolution. These committees will ensure
a continuous feedstock supply to bioenergy plants, implement
the one-tehsil-one-plant strategy, train Farmer Producer
Organizations (FPOs), and integrate FPOs with bioenergy plants.

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A2: Municipal solid waste

Challenge:
Segregation at source is the biggest challenge in India, as people
are not ready to segregate waste according to the biodegradable/
non-biodegradable category of waste. According to the Solid
Waste Management Rule, 2016, a national mandate was formed
to segregate waste at its source. This mandate failed miserably,
as the segregation of waste is still one of the biggest challenges
while dealing with MSW. The main reason behind this failure is
a lack of enforcement and no behavioural changes in locals. One
of the major challenges with the collection and transportation of
waste is the lack of proper infrastructure to transport the waste
in a segregated manner. Even if the waste is segregated at the
source, collecting and transporting dry and organic waste in the
same vehicle reduces the efforts to zero. Waste quantification and
characterization—which includes the quantity of waste generated,
sources that generate waste, the composition of waste, and
impurities in waste—is currently lacking.

Recommendations:
 In the long run, the CBG projects could run on MSW if the
strict regulations and better enforcement of the Solid Waste
Management 2016 regulations are mandated by the states
 There is a need to upgrade the waste collection infrastructure.
To facilitate this, the collection could also be done using the
public–private-partnership model.
 Urban local bodies shall conduct regular analysis and surveys
to get data for efficient estimation of waste availability fit to use
for CBG generation.
 Even after segregation, there are some food components, like
onion peels, lemons, etc., that need to be separated before
feeding the organics in the digestor. This is important as these
will disturb the biology of the reactor. To ensure this, advanced
machinery needs to be in place to segregate these components
using modern technology. This needs investment in research
and development, as well as incentive support from the state
governments.

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

 It has also been seen that a lot of sand comes at the CBG projects
with organic waste, which ultimately settles in the digestors
and lowers its efficiency. The state policy should incentivize
machinery that filters sand from the organic waste.

A3: Pressmud

Challenges:
Sugar mills, once viewing pressmud as a waste problem, now
acknowledge its capacity to generate income, resulting in a
significant surge in pressmud prices over the past couple of
years, escalating from Rs 100 per tonne to Rs 600–800 per tonne.
Pressmud also faces competition for its use as a feedstock for pellet
formation and as fuel in brick kilns. The absence of agreements
with sugar mills intensifies the obstacles. Furthermore, the
storage of pressmud poses difficulties as it goes through gradual
decomposition, complicating extended storage and elevating
production expenses.

Recommendations:
 CBG producers should be assisted in tying up with nearby
sugar mills and ensuring that the pressmud is procured at fixed
prices with reasonable increments in procurement prices every
year. Like cane prices, the Central/state government shall cap
the price of the pressmud that could lead to uniform pricing
across the state. Long-term agreements >10 years with the CBG
producers shall be the priority.
 Alternative uses of pressmud, such as pellet formation and
direct usage as fuel for brick kilns in the CBG plant vicinity,
should be discouraged by strictly maintaining the penalty
guidelines.
 The state governments should only sanction a limited number
of plants around sugar mills, depending on the pressmud
quantity production.
 Barren lands under the state purview should be made available
for pressmud storage, and capex incentives for storage
infrastructure should be provided under the state’s policy.

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 Research and development on pressmud storage methods
should be executed. The standard operation procedure (SOP) for
pressmud storage should be made part of the policy with clear
guidelines.

A4: Animal waste

Challenge:
The issue with animal waste is that it is dispersed across rural
areas, making collection difficult. Additionally, it has a low total-
solids content, resulting in lower biogas production compared
to other feedstocks with the same input quantity. Furthermore,
inconsistent pricing across different districts and states, along
with the absence of standardized pricing criteria for the feedstock,
leads to economic imbalances for CBG producers.

Recommendations:
 Large cattle farms, cow shelters, and goshalas with a combined
quantity of atleast 100 tons of cattle dung per day should be
encouraged to set up CBG projects either on their premises or
in nearby areas. It should also be ensured that the feedstock is
available at no cost. Decentralized biogas models are preferred
for smaller quantities.
 Milk cooperatives should be informed about the potential of
cattle dung as an energy source, and mechanisms should be
established to collect it through a cooperative model. A model
cooperative facility, similar to Amul, should be developed
to promote the establishment of CBG plants within a 25 km
radius. This initiative will ensure the effective utilization of
organic feedstock and provide farmers and stakeholders with
economic benefits from the CBG plant in terms of power and
manure. Additionally, stakeholders in the cooperative society
should participate in awareness and training programs to stay
informed and updated.
 The price of cattle dung should be determined based on its total
solid content to ensure farmers receive fair compensation. For
instance, the National Dairy Development Board has created
a price chart based on two quality parameters of bio-slurry,

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

similar to the system used for milk procurement. This approach

benefits both farmers and CBG producers.
 Besides solid feedstocks, industries with liquid effluents, such
as spent wash from distilleries, discharges from paper and
pulp manufacturing, and other types of liquid industrial waste,
should be encouraged to establish CBG projects.

7.2 ENSURING COMPLETE GAS OFFTAKE FROM

THE CBG PLANT
 There has been partial offtake of CBG from the plants due to
low consumption on CNG stations. Also, transporting the gas
through cascades leads to increased transport cost and gas
leakages. To overcome this challenge, it shall be ensured that
CNG and PNG pipeline is connected to the CBG plant by providing
incentives on pipeline expansion capital cost and providing
faster regulatory approvals. The Central government approved
the scheme on June 26, 2024 for development of pipeline
infrastructure (DPI) for injection of CBG in city gas distribution
network, and provides standard financial assistance for laying
of pipeline (Steel/MDPE) up to 50 km @ 50 per cent of the
project cost or Rs 0.5 crore per km, whichever is less. In case of
connectivity where only MDPE pipeline is used, the financial
assistance shall be restricted to 50 per cent of project cost or
0.075 crore per km, whichever is lower. In addition to this
incentive, the state governments shall also provide additional
subsidies on pipeline installation as it is a crucial aspect to
ensure complete CBG offtake.
 Most of the CBG projects are located in rural areas, but the
demand for CNG in rural areas is hampered by the scarcity of CNG
vehicles in these regions. To address this issue and stimulate
demand, providing incentives for retrofitting existing petrol/
diesel vehicles into CNG to create demand could be beneficial.
Conversion of agricultural equipment, including tractors, to
CNG, shall be promoted by providing indirect benefits. Recently,
Bajaj launched India’s first two-wheeler on CNG that will help
to stimulate CNG demand in the country.
 Facilitating and incentivizing industries and hotels to use CBG
could lead to secondary market creation in the states.

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7.3 ENSURING BIO-SLURRY/FERMENTED ORGANIC
MANURE (FOM) OFFTAKE FROM THE CBG PLANT
 Biomethane production generates a byproduct called bio-slurry
or fermented organic manure (FOM), which can be utilized as a
fertilizer or soil improver, substituting inorganic fertilizers and
aiding in soil restoration and carbon retention. However, despite
its potential value, digestate is difficult to monetize and is often
seen as a disposal problem rather than a revenue source. Plant
owners frequently give it away to nearby farmers or dispose
of it on vacant land due to the lack of awareness about FOM’s
benefits, application methods and optimal usage periods. This
lack of knowledge also hampers the practice of enriching FOM.

 To address this, states should ensure that fertilizer companies

like IFFCO and KRIFCO purchase FOM at fixed prices.
Alternatively, state governments could provide a one-time
subsidy to install FOM enrichment machinery at plants. Raising
awareness about FOM characteristics, application procedures,
and benefits through organizations like Krishi Vigyan Kendra
and State Agricultural Universities is essential. Additionally,
encouraging other FOM consumers, such as the National
Highway Authority of India (NHAI) for mid-path plantations
and organic farms, especially if a CBG project is within a 20 km
radius, could help facilitate FOM offtake from CBG plants.

 Creating a national or state-level single brand for FOM/LFOM

produced by CBG projects could help farmers better understand
its quality and uses. The government could introduce suffix
designations like A, B, C and D to identify FOM based on
its source, such as press mud, agricultural residue, animal
manure or municipal solid waste, as each type has different
characteristics and benefits for soil. This clarity is essential for
the end users, who are farmers.

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7.4 SUPPORT DURING INSTALLATION OF THE CBG

PLANT
The following measures would be beneficial during installation of
CBG plants:
 Given the high initial costs of installing CBG projects, offering
state subsidies in addition to the Ministry of New and Renewable
Energy capital cost subsidy could be advantageous. A subsidy
of Rs 50–75 lakh per tonne of the plant’s CBG capacity could be
provided.
 CBG plants must meet various regulatory requirements and
obtain permits for emissions to air and water, waste handling,
digestate management, health and safety, gas handling and
storage, construction, feedstocks, and connection to the gas
grid. Ensuring best practices through regulation is essential.
However, the approval process can be lengthy, taking around
two years in the best-case scenario but extending to five years
or more in other cases. This is particularly challenging in
India, where the government aims to rapidly install 5000 CBG
projects. Accelerating the permitting process, ideally within
standard approval timeframes, is crucial for the swift growth
of the biomethane industry. This can be achieved by increasing
staff resources to process applications, providing specialized
training in biogas and biomethane, leveraging digitalization,
and simplifying requirements where possible, such as through
one-stop shops. It is important to recognize that while speeding
up the process is desirable, maintaining regulatory compliance
and best practices remains necessary. An online portal with a
time-tracking system for regulatory approvals across different
state departments could facilitate this process.
 Land should be offered at reasonable prices per acre, rather than
free, near the feedstock hub or CBG plant, rather than in random
locations. This involves prioritizing appropriate land parcels
and speeding up approval processes, including obtaining NOCs
from District Magistrates and various regulatory authorities.
Additionally, land registration charges should be waived. Since
most of these plants are installed in rural areas near agricultural

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 land, the conversion of land use from agricultural to industrial
for CBG projects should be facilitated within a specified time
frame.
 The states should map the infrastructure of CNG pipelines
and publish detailed maps online through their respective
renewable energy agency portals. This will help CBG producers
find suitable locations for their projects efficiently.
 Establish frameworks for cooperative infrastructure
deployment aimed at biomethane upgrading and integrating
into gas networks. This approach aims to reduce investment
and operational costs for multiple biogas producers located in
the same geographical area, such as multiple CBG units.
 Assistance should be providded in facilitating independent
electricity feeder-line connections, crucial for CBG projects
requiring continuous 24-hour electricity. Alternatively, the
integration of solar projects with CBG plants should be promoted
to ensure fixed-price off-take for surplus electricity generated
by these projects..

7.5 TECHNICAL ASSISTANCE OR OPERATIONAL

SUPPORT
Provision of the following technical assistance and/or operational
support is recommended:
 Operational challenges frequently confront functioning plants,
resulting in issues like gas leakage, inefficiency and operating
below optimal capacity. This arises from a lack of skilled
personnel with inadequate understanding of biogas production
systems involved in plant operations. Capacity-building
programmes on operational aspects of the CBG project at regular
intervals by the state renewable energy nodal agency is a key
requirement. A trained pool of manpower is missing, even
after the gas-based economy and the six-year-old initiative
Sustainable Alternative Towards Affordable Transportation
(SATAT) are six years old. Like the programme Suryamitra,
state renewable energy nodal agencies shall train jaivmitras to
operate bioenergy projects.

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

 Performing scientific analysis presents difficulties, including

a lack of awareness regarding laboratories for sample
characterization and the absence of easily accessible
monitoring instruments for operations. Additionally, there
is an absence of a Biogas Development and Training Centre
(BDTC) in various states, which was created by the Ministry
of New and Renewable Energy to handhold the small scale
biogas plants. It is important to specify the sample testing
labs for the CBG projects in the state, which could be either
government universities labs or BDTCs, and clearly define the
characterization prices and application procedure.
 Given that CBG plants are environmentally friendly projects that
help reduce carbon emissions, they qualify for carbon credits.
Nevertheless, the application procedure is complex and the
associated fees are high. To streamline this, it is recommended
that a collective pool be formed for all CBG projects within the
state, with the state nodal agency acting as the unified applicant
for all operational plants in the region. Uttar Pradesh serves as
a prime example of this approach.

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 DEVELOPING AN EFFECTIVE STATE-LEVEL
COMPRESSED BIOGAS POLICY IN INDIA

The adoption of compressed biogas (CBG) projects

in India has been slow—with just 100 projects in
operation as of August 2024—falling well below the
goal of 5,000 plants by 2030.
A key obstacle to CBG development is the ineffective
execution of policies at the state level. While several
states have significant CBG potential, they still lack
clear policies and incentives. Only four states—Uttar
Pradesh, Haryana, Bihar, and Gujarat—currently have
bioenergy policies that support CBG.
To address this issue, this policy brief identifies
critical elements for crafting state-specific CBG
policies. It also reviews existing state bioenergy policies
and draws on international best practices to guide
effective policy-making for state governments and
renewable energy agencies.

Centre for Science and Environment

41, Tughlakabad Institutional Area, New Delhi 110 062
Phone: 91-11-40616000 Fax: 91-11-29955879
E-mail: [email protected] Website: www.cseindia.org

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