The Ministry of Petroleum and Natural Gas (MoPNG) has revised the financial assistance disbursement process for compressed biogas (CBG) projects to support the purchase of biomass aggregation machinery. As per the updated guidelines, CBG plants with a minimum capacity of 2 tonnes per day (TPD) that use over 50 per cent biomass as feedstock are eligible to receive financial assistance of Rs 9 million. To qualify for this subsidy, both existing and upcoming CBG plants must use at least 50 per cent biomass or a minimum of 3,000 metric tonnes (MT) of biomass annually. Projects under development must have reached at least 25 per cent completion to be eligible, with 50 per cent progress required before any funds are released.
Projects that have already received financial support under other central or state schemes are not eligible for this assistance. Additionally, applicants must clearly mention in their applications whether the proposed machinery or equipment is new or existing, along with an inventory of available machinery. Projects using less than 50 per cent biomass but consuming more than 3,000 MT of biomass annually can still receive support—Rs 2.9 million per 3,000 MT of agricultural residue used. The financial aid is capped at 50 per cent of the biomass machinery’s procurement cost or Rs 2.9 million per project, whichever is lower, and is disbursed in proportion to the amount of biomass collected.
Once approved, applicants can receive up to 10 per cent of the financial assistance as a mobilisation advance, provided they furnish a bank guarantee of the same value, valid for one year. Disbursement will follow the timelines and procedures set by the project management agency. If developers do not adhere to the scheme’s conditions during execution, the bank guarantee will be forfeited. Applicants may request phased disbursement of funds within two years of approval.
