Home / Policy & approvals
Built on India's push for bio-CNG
Central and state governments actively back compressed biogas. Here are the programmes, incentives and approvals that shape every Panchvati plant.
Government initiatives
Programmes that support CBG
SATAT
Guaranteed offtake of CBG by oil marketing companies, with a target of 5,000 plants nationwide.
Viability Gap Funding
Financial support that lowers the capital investment needed to set up bio-CNG plants.
City Gas Distribution expansion
Rapid growth of the CGD network makes it easier to deliver bio-CNG to homes and industry.
Excise duty exemption
Bio-CNG is exempt from excise duty, making it cheaper than conventional fuels.
PLI for automobiles
Production-linked incentives for advanced automotive technology, including bio-CNG vehicles.
GOBAR-Dhan
Support for organic manure from biogas plants through Market Development Assistance.
Central & state incentives
Capital support available
| Project | Central government (MNRE / GoI) | Uttar Pradesh government |
|---|---|---|
| CBG plant: capital subsidy | Up to ₹4 crore per 4,800 kg/day of new CBG capacity (MNRE Waste-to-Energy programme) | ₹75 lakh per tonne of capacity, up to ₹20 crore |
| Bio-coal / pellet / briquette plant | Non-torrefied: ₹21 lakh per MTPH Torrefied: ₹42 lakh per MTPH | ₹75,000 per tonne, up to ₹20 crore |
| Organic manure (FOM / LFOM / PROM) | About ₹1,500 per tonne under GOBAR-Dhan Market Development Assistance | – |
Amounts are based on the company presentation and the scheme guidelines it cites. Final eligibility and amounts depend on current scheme rules.
Statutory requirements
Approvals for every plant
State nodal agency
Submit a Detailed Project Report to the state government for approval, which unlocks subsidies and other benefits.
Pollution control
Consent to Establish and Consent to Operate from the UP Pollution Control Board, plus hazardous-waste authorisation.
Change of land use
Land-use clearance from the state housing and urban development department.
PESO licence
Licence to fill CBG cylinders from the Petroleum and Explosives Safety Organisation under the Gas Cylinders Rules, 2016.
Local approvals
Canal or groundwater use, forest department, village panchayat, chief electrical inspector and district fire officer.
Long-term purchase agreement
Offtake agreement with an oil company to buy CBG at prevailing CNG rates.
Fiscal benefits
Tax and duty advantages
Income tax: Section 80JJA
Deduction on profits from collecting and processing biodegradable waste. Only Minimum Alternate Tax (MAT) applies.
No land conversion charges
No fees for land-use change for renewable energy projects in agricultural zones.
Customs duty concessions
Plant equipment can be imported without customs duty.
Local area tax exemption
The project is exempt from local area development tax.
Bank finance
Loans for CBG projects are available from banks and financial institutions.
Carbon credits
Captured methane can earn credits on voluntary markets such as Gold Standard, adding another revenue stream.
PESTEL analysis
The bigger picture
Political
Government policies, regulations and incentives for producing, distributing and using bio-CNG.
Economic
Market demand, pricing and viability against fossil fuels, and access to funding.
Social
Public perception and acceptance of bio-CNG as an alternative fuel.
Technological
Production, storage and distribution technology, and room for innovation.
Environmental
Emission cuts, sustainability and contribution to renewable energy goals.
Legal
Licensing, emission standards and safety regulations for CBG.