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| Scheme Policy | Details |
|---|---|
| Scheme / Policy | Andhra Pradesh Biogas / Bio-CNG / Bioenergy support framework |
| Main AP implementing agency | NREDCAP – New & Renewable Energy Development Corporation of Andhra Pradesh Ltd. |
| Small Biogas | National Biogas Programme implemented in AP through NREDCAP |
| Medium/Large Biogas / Bio-CNG | MNRE Waste-to-Energy Programme + AP clean-energy/industrial policies |
| AP Clean Energy Policy | Andhra Pradesh Integrated Clean Energy Policy, 2024 |
| Main feedstock | Cattle dung, poultry waste, agricultural residues, food waste, municipal/organic waste and other eligible biomass/organic matter |
| Outputs | Biogas, electricity, thermal energy, Bio-CNG/CBG and organic manure |
| Target users | Farmers, households, institutions, industries, municipalities/ULBs, entrepreneurs and project developers |
| AP nodal agency for renewable-energy programmes | NREDCAP |
Eligibility depends on which type of biogas project you are proposing.
Generally applicable to:
The National Biogas Programme supports plants in the 1–25 m³/day range.
Projects above approximately 25 m³/day up to 2,500 m³/day can fall under the MNRE Biogas Programme, depending on the intended application and programme conditions.
Commercial developers can establish projects using:
For Bio-CNG/CBG projects, the MNRE Waste-to-Energy programme provides Central Financial Assistance subject to its eligibility requirements.
The scheme is relevant to:
Agriculture
Dairy
Poultry
Food Processing
Municipal / Urban Waste
There are two major financial-assistance routes.
For biogas plants of 1–25 m³/day, the NREDCAP-published CFA schedule is:
| Plant Size | General Category | SC/ST Category |
|---|---|---|
| 1 m³/day | ₹9,800 | ₹17,000 |
| 2–4 m³/day | ₹14,350 | ₹22,000 |
| 5–7 m³/day | ₹22,750 | ₹29,250 |
| 8–13 m³/day | ₹23,000 | ₹34,500 |
| 14–19 m³/day | ₹37,950 | ₹63,250 |
| 20–25 m³/day | ₹52,800 | ₹70,400 |
Important
This is not an AP State capital subsidy. It is Central Financial Assistance implemented in Andhra Pradesh through NREDCAP.
For medium-size plants, MNRE's National Bioenergy Programme covers biogas plants of approximately:
Above 25 m³/day up to 2,500 m³/day.
The supported applications include:
For commercial Bio-CNG / Compressed Bio-Gas projects, the MNRE Waste-to-Energy programme provides:
New biogas plant → Bio-CNG
₹4 crore per 4,800 kg/day of Bio-CNG capacity
subject to:
Maximum CFA
₹10 crore per project.
Existing biogas plant → Bio-CNG
₹3 crore per 4,800 kg/day
subject to the same:
₹10 crore/project maximum CFA.
For electricity generation from biogas, the MNRE Waste-to-Energy programme provides:
| Project | CFA |
|---|---|
| New biogas plant → power | ₹0.75 crore/MW |
| Existing biogas plant → power | ₹0.50 crore/MW |
| Maximum CFA | ₹5 crore/project |
For power from bio/agro-industrial waste other than MSW incineration, the published rate is ₹0.40 crore/MW, subject to the applicable maximum.
A commercial biogas/CBG project may also need to be examined under the AP Industrial Development Policy 4.0 and AP Integrated Clean Energy Policy 2024, depending on the project's nature and classification.
For example, the AP Industrial Development Policy contains a de-carbonisation subsidy for eligible investments in clean production, waste reduction, resource efficiency and green-energy interventions. For qualifying projects, the published incentive is a percentage of eligible project cost, subject to a maximum of 6% of FCI.
However, do not automatically add this to the MNRE CFA. Eligibility and non-duplication provisions have to be checked project-by-project.
There is no single investment ceiling for "AP Biogas."
Instead, classify the project by plant size, output and applicable programme.
| Project | Typical scale |
|---|---|
| Family biogas | 1–25 m³/day |
| Medium biogas | >25–2,500 m³/day |
| Commercial CBG | Generally substantially larger; project-specific |
| Municipal biomethanation | Project-specific |
| Industrial biogas | Project-specific |
For industrial projects, FCI-based classification under the applicable AP industrial policy can additionally become relevant.
A qualifying project can potentially have several revenue/support components:
Direct Government assistance
Project revenues
A CBG project can generate revenue from:
AP urban-waste project documents specifically recognise the combined benefit of biogas energy + organic manure.
For commercial CBG projects, the SATAT framework is relevant because the MNRE Waste-to-Energy programme expressly supports Bio-CNG/CBG projects under the SATAT initiative.
The business model can therefore involve:
Organic waste → Anaerobic digestion → Raw biogas → Purification/upgrading → CBG → Compression → Sale
with:
Digestate → Organic manure/bio-fertilizer
as a secondary product.
Important conditions include:
Feedstock
The applicant must demonstrate:
Technology
The plant must use eligible/approved technology and satisfy applicable technical standards.
Environmental approvals
Depending on project size/location:
CBG project
For a CBG plant:
may be required.
Performance
MNRE CFA is linked to successful commissioning and project performance. For Waste-to-Energy projects, the published guidelines use performance during at least three consecutive months for determining the eligible CFA.
| Point | AP Biogas |
|---|---|
| Main AP agency | NREDCAP |
| Family biogas | 1–25 m³/day |
| Medium biogas | >25–2,500 m³/day |
| Commercial CBG | Project-specific |
| General 1 m³ CFA | ₹9,800 |
| SC/ST 1 m³ CFA | ₹17,000 |
| General 20–25 m³ CFA | ₹52,800 |
| SC/ST 20–25 m³ CFA | ₹70,400 |
| New CBG – MNRE CFA | ₹4 crore / 4,800 kg/day |
| Existing biogas → CBG | ₹3 crore / 4,800 kg/day |
| Maximum CBG CFA | ₹10 crore/project |
| New biogas → power | ₹0.75 crore/MW |
| Existing biogas → power | ₹0.50 crore/MW |
| Maximum power CFA | ₹5 crore/project |
| Application for commercial WTE | BioURJA Portal |
| AP nodal agency | NREDCAP |
| Major feedstock | Cattle dung, agri waste, poultry, food waste, organic MSW |
| Products | Biogas, CBG, electricity, thermal energy, manure |
| Major current caution | Old MNRE Phase-I scheme ran through FY 2025–26; verify the current 2026 successor guidelines before budgeting CFA |