Key points
- MNRE's Waste to Energy programme, part of the National Bioenergy Programme, offered central financial assistance (CFA) for large biogas, BioCNG and biogas-power plants.
- Assistance was linked to performance. The full amount was paid only when the plant ran at a high plant load factor.
- The SATAT initiative created a buyer market for compressed biogas, and the GOBARdhan portal registers biogas and CBG plants.
- Digestate from biogas plants is recognised as fermented organic manure under the Fertiliser Control Order.
Check before you rely on it: schemes change. The programme period on MNRE's page ran from FY 2021-22 to FY 2025-26. As of 17 October 2026 we could not find a published extension or a second phase. Confirm the current rules on the MNRE website and the BioURJA portal before planning a project around them.
The National Bioenergy Programme
MNRE notified the National Bioenergy Programme on 2 November 2022 for FY 2021-22 to 2025-26. It has components for biogas, biomass and waste to energy. The sanction order approved a Phase-I outlay of ₹858 crore, with ₹600 crore for the waste-to-energy component.
The Waste to Energy component supported projects that make biogas, BioCNG, power or syngas from urban, industrial and agricultural wastes. It covered large biogas, BioCNG and power plants, but not municipal-solid-waste-to-power incineration projects.
Central financial assistance rates
As published on MNRE's programme page:
| Project type | CFA | Maximum per project |
|---|---|---|
| BioCNG / CBG, new biogas plant | ₹4.0 crore per 4,800 kg/day | ₹10 crore |
| BioCNG / CBG, existing biogas plant | ₹3.0 crore per 4,800 kg/day | ₹10 crore |
| Power from biogas, new biogas plant | ₹0.75 crore per MW | ₹5 crore |
| Power from biogas, existing biogas plant | ₹0.5 crore per MW | ₹5 crore |
| Power from bio and agro-industrial waste (not MSW incineration) | ₹0.4 crore per MW | ₹5 crore |
| Biomass gasifier, 100% gas engine (electrical) | ₹15,000 per kWe | — |
| Biomass gasifier, dual-fuel engine (electrical) | ₹2,500 per kWe | — |
MNRE's page also notes that CFA is 20% higher for plants in Special Category States and UTs, and for biomethanation plants in registered gaushalas and shelters.
Assistance tied to performance
For waste-to-energy plants, the CFA depended on the average plant load factor (PLF) over at least three consecutive months:
| Average PLF achieved | Share of CFA paid |
|---|---|
| 80% or more | 100% |
| 60% to below 80% | 80% |
| 50% to below 60% | 60% |
| Below 50% | None |
The message is clear: support goes to plants that actually run. A reliable feed supply, gas cleaning and engine maintenance are what keep the PLF high. Industry reports describe a later revision that released half the CFA earlier, on Consent to Operate backed by a bank guarantee, and the rest on reaching the performance level. Confirm the version that applies to your project with MNRE.
How applications worked
- In-principle approval first. Apply on the BioURJA portal (biourja.mnre.gov.in) before commissioning the plant.
- Appraisal. Projects financed by a bank or financial institution, and projects without debt, followed different appraisal paths.
- Commission within the time allowed. MNRE listed 24 months for waste-to-energy plants.
- Prove performance. Submit generation data to show the PLF, and inspection follows before release.
SATAT and GOBARdhan
SATAT (Sustainable Alternative Towards Affordable Transportation) was launched in October 2018. It invited entrepreneurs to build compressed biogas plants and sell CBG to oil marketing companies, with a headline target of 5,000 plants and 15 million tonnes a year. GOBARdhan runs a unified registration portal for biogas and CBG plants.
For a comparison of selling CBG with using the gas for your own electricity, read Biogas power or CBG?.
Digestate is a recognised fertiliser
The Fertiliser (Control) Order, 1985 has been amended to include fermented organic manure (FOM, the solid fraction of biogas slurry) and liquid fermented organic manure (LFOM). In 2025 it added organic carbon enhancers from CBG plants. A 2023 notification exempted FOM and LFOM makers from the authorisation letter for three years, and later notifications have eased the rules further. Check the latest Gazette notifications for the exact conditions.
The bigger picture
India is aiming for 500 GW of non-fossil power capacity by 2030. Bioenergy, including waste to energy, stood at 11.61 GW at the end of 2025, according to MNRE's year-end review. Unlike solar and wind, biogas power runs on demand, day and night. That is why policy keeps returning to it for farms, food industries and urban waste.
Frequently asked questions
Does MNRE give a subsidy for biogas power plants?
MNRE's Waste to Energy programme listed central financial assistance of ₹0.75 crore per MW for power from new biogas plants (maximum ₹5 crore per project) for FY 2021-22 to 2025-26. Check MNRE for the current position.
Where do I apply for MNRE waste-to-energy assistance?
In-principle approval was applied for on MNRE's BioURJA portal (biourja.mnre.gov.in) before commissioning the plant.
Is the assistance linked to plant performance?
Yes. The share of CFA paid depended on the plant load factor achieved over at least three consecutive months: 100% at 80% PLF or more, and none below 50%.
Can biogas slurry be sold as fertiliser?
Yes. The Fertiliser Control Order lists fermented organic manure (FOM) and liquid fermented organic manure (LFOM) from biogas plants.
Sources
- MNRE: Programme on Energy from Urban, Industrial, Agricultural Wastes/Residues
- MNRE: National Bioenergy Programme sanction order, 2 Nov 2022
- IEA policy database: India National Bioenergy Programme
- IamRenew: MNRE eases waste-to-energy guidelines
- IMPRI: SATAT — building India's compressed bioenergy economy
- Gazette of India: FCO amendment (fermented organic manure)
- GOBARdhan: FCO amendment — authorisation exemption for FOM/LFOM makers (2023)
- IamRenew: Organic carbon enhancers from CBG plants included as fertiliser
- MNRE year-end review 2025, reported by SolarQuarter
Figures are as published in the sources above. Plant results vary with the waste, the design and how the plant is run. Last reviewed 17-10-2026.
