What are the Indian Biogas Association's budget recommendations?

The IBA recommends a Rs 10,000 crore fund, increased subsidies for compressed biogas (CBG) production, and mandatory blending of fermented organic manure (FOM) in fertilizers.

How will subsidies for compressed biogas (CBG) change?

The IBA proposes increasing the subsidy by 50% to Rs 6 crore per 4.8 TPD of CBG capacity, with an upper cap of Rs 25 crore per project.

What is the role of fermented organic manure (FOM) in India's fertilizer use?

The IBA suggests a minimum 5% FOM blending in fertilizer application by 2028, aiming to improve soil health and reduce reliance on chemical fertilizers.

Home / Business and Economy / Biogas Boom: India Eyes Rs 10,000 Cr Fund for Green Growth

Biogas Boom: India Eyes Rs 10,000 Cr Fund for Green Growth

11 Jan

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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.

Biogas Boom: India Eyes Rs 10,000 Cr Fund for Green Growth

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).