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Biogas Boom: India Eyes Rs 10,000 Cr Fund for Green Growth
11 Jan
Summary
- Indian Biogas Association proposes Rs 10,000 crore fund for industry.
- Calls for 50% subsidy increase to Rs 6 crore per 4.8 TPD of CBG.
- Advocates for 5% FOM blending in fertilizer by 2028.
The Indian Biogas Association (IBA) has put forth a significant recommendation for the upcoming Union Budget, proposing a dedicated Rs 10,000 crore fund to support the burgeoning biogas industry. This initiative aims to provide crucial capital subsidy, encouraging private investment and stimulating rural economies. The association is advocating for a substantial 50% hike in subsidies, pushing the figure to Rs 6 crore per 4.8 TPD of compressed biogas (CBG) production capacity, with an upper project cap of Rs 25 crore.
Further, the IBA has championed the integration of organic farming practices by proposing a minimum 5% mandated blending of fermented organic manure (FOM) in overall fertilizer application by 2028, with a further increase to 10% by 2030. This recommendation seeks to redirect a portion of the vast chemical fertilizer subsidy towards eco-friendly alternatives, thereby improving soil health and promoting climate-smart agriculture. The association also highlighted the need for scaling up Central Financial Assistance (CFA).
To unlock further revenue streams and support India's climate targets, the IBA has called for carbon monetization through a Green Certificate mechanism. This would enable biogas plant promoters to sell carbon credits on international and domestic platforms, potentially adding a significant premium to CBG production. The proposed measures collectively aim to position the biogas sector as a vital pillar of India's green growth strategy, requiring deeper fiscal support and easier financing.
