The Indian Government has sanctioned a programme to offer financial aid to compressed bio gas (CBG) producers. The scheme aims to facilitate the acquisition of Biomass Aggregation Machinery (BAM), supporting the collection of biomass. The allocated budget for this initiative is Rs 5.64 billion for the fiscal years 2023-24 to 2026-27. The main objective of this programme is to streamline the aggregation and marketing of biomass, discouraging the burning of excess biomass and creating additional revenue opportunities for farmers. Additionally, the initiative seeks to harness economic value from underutilised biomass resources and agricultural residues, such as paddy straw, by transforming them into CBG and bio-manure. The scheme will aid the collection of biomass for the first 100 biomass-dependent CBG plants by offering financial assistance to CBG producers for the acquisition of BAM.
A project approval board (PAB) will be in place to evaluate the projects put forth by the project appraisal committee (PAC). The approval from PAB will authorise further proceedings by the project management agency (PMA). Additionally, it will aid the steering committee in overseeing and enhancing the scheme, offering guidance to the PMA. The PMA will also be responsible for establishing a dedicated portal, and to assess and propose a roster of machinery and equipment to the PAC for approval. The biomass aggregation equipment will be physically verified by PMA, who will also upload the verification report. Additionally, the agency will carry out capacity-building initiatives and actively participate in promotional events such as workshops, seminars, and exhibitions across diverse regions. This aims to enhance awareness of biomass aggregation and document and share success stories.
Regarding the funding structure of the initiative, the government will provide a maximum financial aid equivalent to 50 per cent of the BAM’s procurement cost or Rs 9 million per set, whichever is lower. CBG producers are obligated to provide a detailed Project Report (DPR) outlining their CBG project. The PMA will evaluate the biomass needs and determine the quantity of aggregation machinery sets based on the submitted DPR. For a 4 tonnes per day CBG capacity project, financial support amounting to Rs 18 million will be extended with a maximum limit of Rs 90 million per project on a pro rata basis. To avail the benefits under the scheme, CBG projects must have an installed or proposed CBG production capacity of at least 2 tonnes per day (TPD) and be registered on the GOBARdhan portal. For under construction projects, at least 50% of physical progress as per DPR will be required for eligibility considerations.
