Incentives, local support at state can boost biogas sect, says industry

Additional financial assistance, easy access to finance and local support mechanisms are some of the measures that the state governments can take to promote the biogas sector which can help them save Rs 50,000 crore in various means, Indian Biogas Association (IBA) has suggested.

Talking to PTI in an interview, IBA Chairman Gaurav Kedia said, "States can bolster central initiatives for the sector by offering additional financial incentives, facilitating easy access to credit, and providing local support mechanisms."

He stressed that involvement of state governments is critical to achieve the larger goal of self-reliance in energy.

State governments can save up to Rs 50,000 crore through the biogas sector, he said, adding that savings could be in the form of waste management and pollution reduction, biogas production and health improvements of population.

He cited the example of the Uttar Pradesh government, which offers an additional Rs 75 lakh per ton of production capacity (up to Rs 20 crore) on the top of central government subsidies for biogas projects.

Such efforts can accelerate the growth of the sector and encourage more widespread adoption of biogas technology, he explained.

He suggested that states can further enhance the sector by improving infrastructure around biogas plants.

For bio-energy enterprises investing Rs 50 crore or more, infrastructure like roads can be critical for ensuring smooth operations and reducing logistical costs, he pointed out.

He further stated that another area where state governments can contribute is in the allocation of underutilised land for biogas projects.

States could also explore integrating biogas facilities within existing agricultural operations, and industries generating organic waste streams, thereby streamlining the setup process and improving overall efficiency, he suggested.

Land is becoming an important commodity for any greenfield projects and state government can play an important role in the biogas industry.

There is a delay in almost 50 per cent of the plants due to the unavailability of land in various states, he noted.

State governments can also play a critical role in creating a sustainable supply chain for organic waste or biogas plant substrate, which is essential for the continuous operation of biogas plants, he suggested.

More than 80 per cent of the operational biogas plants are unable to run at full capacity due to the unavailability of raw materials, he pointed.

Collaboration with local agricultural and municipal sectors to establish a reliable feedstock supply from agricultural residues and food waste would enhance the sector's efficiency, he suggested.

Promoting the collection of biodegradable waste through state-level initiatives would also contribute to effective waste management, reducing the burden on landfills and mitigating environmental pollution, he stated.

"If implemented effectively, state-driven support for biogas projects could result in significant economic and environmental benefits. Achieving just 10 per cent of the SATAT target through these incentives could lead to savings of up to Rs 50,000 crore in areas such as waste management, biogas production, health improvements, and pollution reduction, " he said.

The biogas sector in India has witnessed significant momentum due to the central government's proactive policies and incentives.

Central financial assistance from the Ministry of New and Renewable Energy, buy-back possibility under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme by Oil Marketing Companies (OMCs), and incentives for the production of Fermented Organic Manure (FOM) are among the measures introduced to accelerate the adoption of biogas technology across the country.