The government of Madhya Pradesh has introduced the ‘Scheme for Implementation of Biofuel Projects in Madhya Pradesh’ to promote investments above Rs 100 million in biofuel infrastructure. The programme encompasses all stages of biofuel development, from feedstock cultivation and prediction technologies to distribution and end-use. It focuses on creating bio-refinery clusters and building the necessary infrastructure for biomass and waste collection, storage, and transport. The scheme also includes the establishment of biofuel dispensing outlets in both urban and rural regions and supports research, development, and innovation in the field. Only one bioenergy project can be registered per block area under the supervision of the commissioner of the New and Renewable Energy department. Biofuel manufacturing and biomass supply chain units investing more than Rs 100 million are eligible for the incentives, with exceptions made for biomass briquette or pellet plants, biomass-based steam generation units, power and cogeneration projects, biomass supply chain companies and the conversion of existing sewage treatment project to biofuel projects, which are not bound by the Rs 100 million limit.
The scheme offers investment promotion assistance up to Rs 2 billion per project, disbursed in seven equal installments. Developers can also avail 50 per cent support up to Rs 50 million for developing infrastructure if they acquire private or underdeveloped government land. The same level of support is available for establishing waste management systems, with up to Rs 100 million being available for effluent treatment plants. Further provisions include 100 per cent reimbursement for patent-related expenses up to Rs 1 million per kWh for the first five years, and 50 per cent reimbursement for quality certification costs or Rs 100,000, whichever is lower. Tax and duty relief is provided for ten years. Projects are also exempted from electricity duty, energy development cess, and any cross-subsidy or additional surcharges during this period. Stamp duty on private land purchases will be reimbursed at 50 per cent. Mega industrial units investing more than Rs 5 billion may receive customised incentives. Land for bioenergy projects will be provided at 50 per cent of the circle rate.
Access the policy document here.
