renewable energy

MNRE Subsidy Schemes

1. Waste To Energy Programme

the programme is to support the setting up of Waste to Energy projects for generation of Biogas/ BioCNG/ Power/ producer or syngas from urban, industrial and agricultural wastes/residues.- mnre subsidy 



 Standard CFA pattern: Standard pattern of CFA for grant of ‘In-principal Approval’ to Waste to Energy projects under the programme is as follows:


Type of project

Standard CFA rate @ installed capacity of the plant


Rs 0.25 Cr per 12000cum/day (maximum CFA of Rs. 5.0 Cr/project)

BioCNG / Enriched Biogas/ Compressed Bio Gas

Rs 4.0 Cr per 4800 kg/day (for BioCNG generation from new biogas plant) -Rs 3.0 Cr per 4800 kg/day (for BioCNG generation from existing Biogas plant#) -Maximum CFA of Rs. 10.0 Cr/project for both cases

Power (based on Biogas)

-Rs 0.75 Cr/MW (for power generation from new biogas plant) -Rs 0.5 Cr /MW (for power generation from existing Biogas plant#) -Maximum CFA of Rs. 5.0 Cr/project for both cases

Power based on bio & agro-industrial waste (other than MSW through incineration process)

Rs 0.4 Cr/MW (maximum CFA of Rs. 5.0 Cr/project)

Biomass Gasifier for electricity/thermal applications

Rs. 2,500 per kWe with dual fuel engines for electrical application o Rs. 15,000 per kWe with 100% gas engines for electrical application o Rs. 2 lakh per 300 kWth for thermal applications.


2. Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) Based Cogeneration in Industries in the Country”

The programme provides Central Financial Assistance (CFA to project developers and service charges to implementing agency and inspection agencies in respect of setting up of Briquette / Pellet manufacturing plants and Biomass (non- bagasse) cogeneration projects in industries

Funding Pattern

Standard CFA pattern: CFA available under the programme is as follows:


Project Type


Briquette / Pellet Manufacturing plants

Rs. 9 Lakh per MTPH (metric ton/hour) manufacturing capacity (maximum CFA of Rs 45 Lakhs per plant)

Biomass (Non-bagasse ) cogeneration projects

Rs. 40 Lakhs/MW (on Installed Capacity) (maximum CFA of Rs. 5 Crores per project)

3. Biogas Power Generation And Thermal Energy Application Program

·         To promote biogas based Decentralized Renewable Energy Sources of power generation (Off-Grid), in the capacity range of 3 kW to 250 kW or thermal energy for heating/ cooling applications from the biogas generation produced from Biogas plants of 30 M3 to 2500 M3 size.

·         To process scientifically the organic wastes/ Biomass waste as feed stocks for the purpose of setting up

·         Biogas Plants as a source of RE under, such as cattle dung/ animal wastes, food & kitchen waste, poultry dropping waste in single mode or with mix of poultry waste and cattle dung/ goat & sheep dropping, paddy straw, green grass including elephant grass/ Napier grass grown specially for biogas production. Also wastes from rural Industries such as residue /effluents from Agro Processing Industries and Food Processing Industries/ Food Processing Parks, Agricultural Farms/ Dairy Farms, Gaushalas and Milk processing effluent from all dairies.

·         Creation of biogas plant facilities for Farmers/ Dairy Farmers / Individual organizations in Rural Areas.

  • The applicable rates of CFA/ Subsidy for setting up of Biogas based Power Generation (Off-grid) and Thermal application projects are provided in three slabs of sizes of Biogas Plants and corresponding Power generation/ Thermal Energy generation capacity which varies from Rs. 25,000/- to Rs. 40,000/- per KW for Power and Rs. 12,500/- per KWe to Rs.20,000/- per KWe of thermal energy.
  • In all the projects categories, the CFA will be paid on re-reimbursement basis, except for the SC & ST categories and all categories beneficiaries of North Eastern Region States where in the CFA at the rate of 50% of the estimated CFA of the project will be