Biogas Programme (Phase-I) for FY 2021-22 to 2025-26


  1. There is ample potential of setting up biogas plants in India considering the livestock population of 535.78 million, which includes about 302 million total population of bovines (comprising of cattle, buffalo, mithun and yak). The livestock sector contributes about significantly to India’s GDP and will continue to increase. The dissemination of biogas technology is a boon for Indian farmers with its direct and collateral benefits.
  2. Biogas contains about 55-65 % of methane, 35- 44 % of carbon dioxide and traces of other gases, such as Hydrogen Sulphide, Nitrogen and Ammonia. Biogas, in its raw form, that is without any purification can be used as clean cooking fuel like LPG, lighting, motive power and generation of electricity. It can be used in diesel engines to substitute diesel up to 80% and up to 100% replacement of diesel by using 100% Biogas Engines. Further, Biogas can be purified and upgraded up to 98% purity of methane content to make it suitable to be used as a green and clean fuel for transportation or filling in cylinders at high pressure of 250 bar or so and called as Compressed Bio-Gas (CBG).
  3. Initially, Biogas Plants were developed for digesting cattle dung. However, over a period of time, technology has been developed for the bio-methanation of various types of biomass materials and organic wastes. Biogas plant designs are now available from 1 m3 to 1000 m3 unit size or more and multiples of that can be installed for achieving higher Biogas Plant sizes, depending upon availability of the raw material such as for family/ household, small farmers, dairy farmers and for community, institutional and industrial/ commercial applications.

About the Biogas programme

  1. The Ministry of New and Renewable Energy (MNRE), Government of India has notified the National Bioenergy Programme on November 2nd , 2022. MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26. The Programme has been recommended for implementation in two Phases. The Phase-I of the Programme has been approved with a budget outlay of Rs. 858 crore which included Rs. 100 Crore for the Biogas Programme to support setting up of small (1 m3 to 25 m3 biogas per day) and medium size Biogas plants i.e. above 25 m3 to 2500 m3 biogas generation per day for corresponding power generation capacity range of 3 kW to 250 kW from biogas or raw biogas for thermal energy / cooling applications.
  2. The Ministry of New and Renewable Energy, Government of India, launched the Biogas programme with the following objectives:
    • Setting up of biogas plants for clean cooking fuel, lighting, meeting thermal and small power needs of users which results in GHG reduction, improved sanitation, women empowerment and creation of rural employment.
    • Organic enriched Bio-manure: The digested slurry from biogas plants, a rich source of manure, shall benefit farmers in supplementing / reducing of use of chemical fertilizers.

Eligibility Criteria

Eligibility for small biogas plant installation under NNBOMP.

  1. Beneficiary should have their own land/ space about 50-60 Square meter area for installing small biogas plant ( 1 to 25 m3).
  2. Availability of cow dung/ feedstock’s & regular water supply.
  3. Financial capacity for investing their own share money for biogas.

Central Financial Assistance (CFA)

Based on the capacity of the plant, the CFA offered under this programme is as follows:

Sr. No Particulars of Central Financial Assistance (CFA) and States / UTs, regions & categories of beneficiaries Biogas Plants under Biogas Programme ranging from size 1 to 25 cubic Metre biogas per day (In ₹per plant )
1 CFA Applicable 1 M3 2-4 M3 6 M3 8-10 M3 15 M3 20-25 M3
  • Hilly/NER States (Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Ladakh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Uttarakhand)
  • Island; and
  • Scheduled Castes (SC)/ Scheduled Tribes(ST).
17,000 22,000 29,250 34,500 63,250 70,400
  • All other States and Categories
9,800 14,350 22,750 23,000 37,950 52,800

Additional fixed Subsidy for

  • Biogas plant if linked with sanitary toilet
  • Biogas plant if linked with MNRE approved Biogas slurry filter Unit.
3 Turn-Key Job Fee for construction, supervision, commissioning, and free O&M warranty for 5 years trouble free operations. ₹ 3,000/- per biogas plant for size ranging from 1 to 10 M3 and ₹ 5,000/- per plant for size ranging from 15 to 25 M3. This turn key job fee is applicable only for plants involving onsite construction such as fixed dome design Deenbandhu Model, floating gasholder KVIC Model. Turnkey job fee will not be eligible for pre-fabricated/ manufactured biogas plants.
4 Incentive for saving fossil fuels & electricity. An additional incentive of ₹10,000/- per Biogas based Generator set / Biogas engine water Pumping System (BPS) for meeting small farm power needs and water pumping from the biogas plant of 10 to 25 M3. CFA will be eligible only if the Generator set / BPS will run on 100% Biogas.

CFA for Medium size biogas plants: The CFA for biogas plants of size above 25 M3 to 2500 M3 biogas generation per day are as given below in the Table-II.


Power generating Capacity (kW) Requirement of DPR CFA** limited to the following ceiling limit Administrative Charges for PIA*
Power Generation Thermal Application Power Generation Thermal application
3 kW – 50 kW No ₹ 45,000 per kW ₹ 22,500 per kWeq thermal/ cooling 10% of the CFA 5% of the CFA
>50 kW – 200 kW Yes ₹ 40,000 per kW ₹ 20,000/- per kWeq thermal/ cooling ₹2,00,000/- (fixed) ₹1,00,000/- (fixed)
>200 kW – 250 kW Yes ₹ 35,000 per kW ₹ 17,500/- per kWeq thermal/ cooling ₹2,50,000/- (fixed) ₹1,00,000/- (fixed)

*Administrative Charges for PIA shall be provided for technical supervision, submission of project completion & commissioning reports and monitoring of projects.

** Special Incentives for NER, Island, Registered Gaushalas; and SC/ST: An incentive of 20% over and above the CFA mentioned in Table-II.

Proposal Submission under Biogas Programme:

  • For Small Biogas Plants (1 M3 to 25 M3): The individual beneficiary can submit their application with requisite details for installation of biogas plants through MNRE biogas web portal/android mobile app. The PIA will process such applications only after allocation of targets and then take action for the installation of biogas plants at the beneficiary site.
  • For Medium Size Biogas Plants (above 25 M3 to 2500 M3): The proposals for such projects shall be submitted by the PIAs to MNRE round the year through MNRE Biogas web-portal.

To know more - Biogas Programme under the Umbrella scheme of National Bio Energy Progamme for FY 2021-22 to 2025-26-(Phase-I)

Allocation of physical targets for small Biogas Plants

To know more - Biogas Programme during FY 2023-24