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The National Bioenergy Programme (NBP) is implemented by the Ministry of New and Renewable Energy (MNRE), Government of India to promote renewable energy generation and utilization of biomass and organic waste.
The programme supports projects for conversion of agricultural residues, industrial waste, urban waste and other biomass resources into useful forms of renewable energy such as:
The National Bioenergy Programme consists of three major components:
Phase-I of the programme was approved for FY 2021-22 to FY 2025-26 with an outlay of ₹858 crore.
Eligibility depends on the particular component and type of project.
Eligible applicants may include:
Projects may be financed through:
For Waste-to-Energy projects, both bank-financed and self-financed projects are considered under the applicable framework.
The programme supports projects using:
for production of:
For your CBG projects, this is the most relevant MNRE component.
The Biomass Programme supports:
Bagasse-based cogeneration is not covered under the Biomass Programme.
The Biogas Programme supports:
MNRE provides Central Financial Assistance (CFA) rather than calling the support a conventional subsidy.
Under the published Waste-to-Energy framework:
Approximate calculation
₹4 crore per 4,800 kg/day corresponds to approximately:
₹8,333 per kg/day of CBG capacity
For example, purely as a calculation under that published rate:
| CBG Capacity | Indicative CFA |
|---|---|
| 5 TPD | ₹4.17 crore |
| 10 TPD | ₹8.33 crore |
| 12 TPD | ₹10 crore* |
| 25 TPD | ₹10 crore* |
*Subject to the published ₹10 crore/project maximum and applicable eligibility/performance conditions.
Important: These figures relate to the published Phase-I Waste-to-Energy framework. Current applications are subject to the latest MNRE Phase-II guidelines, budget availability and portal status.
The Biomass Programme provides CFA for eligible:
The exact CFA depends on:
The Ministry has also issued revisions to CFA rates for biomass pellet manufacturing projects.
For medium-sized biogas plants from above 25 m³/day to 2,500 m³/day, published CFA rates include:
Power Generation
Thermal/Cooling Applications
For NER, Island regions, registered Gaushalas and SC/ST beneficiaries, the published framework provides a 20% additional incentive over the standard CFA.
The maximum assistance depends upon the MNRE component.
Waste-to-Energy
Maximum CFA for BioCNG/CBG:₹10 crore per project under the published Phase-I framework.
Biogas
The maximum amount depends upon:
Biomass
The applicable ceiling depends on the project type and current CFA norms.
Therefore, there is no single MNRE subsidy percentage applicable to all bioenergy projects.
The MNRE National Bioenergy Programme provides support for:
For CBG projects, MNRE CFA can be an important part of the overall project financing structure along with bank finance and other eligible Government programmes.
Projects must comply with the applicable MNRE scheme guidelines.
Important conditions include:
Applications must generally be submitted through the designated online portal.