Biogas Power Generation

Biogas Power Generation (Off-grid) and Thermal application Programme (BPGTP)

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Biogas plants are reliable source of decentralized Renewable Energy for heating, cooking as well as generating electricity/power generation and as thermal energy application alternative in our country. In order to promote this Decentralized Renewable Energy Source (DRES) of power generation, specifically in the small capacity range (3 Kw to 250 kw) and thermal energy for heating/cooling from the biogas produced from Biogas Plants of 30 m3  to 2500 m3 size, operated based on the availability of required quantity of biodegradable organic waste (s). The scheme has been redesigned to enlarge its pan-India base. The feed stocks for biogas plants that is waste (s) in required quantity and its availability at plant site matching with the biogas plant size from Biomass sources in a sustained manner for a longer period of 15 to 20 years is one of the major parameter for project site selection and feasibility. The eligible feed stock for the purpose of setting up Biogas plants under this scheme are biomass wastes 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.

Central Financial Assistance (CFA) for setting up Biogas Plants under the (BPGTP)

The applicable rate 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. In all the projects categories , the CFA will be paid on re-reimbursement basis, except for the SC &ST categories where in the CFA at the rate of 50% of the  estimated CFA of the project will be given at the middle of the project execution and the balance 50% after proper completion and commissioning of the project in all respect.

The Central Financial Assistance (CFA) for setting of Biogas Plants under the BPGTP as per scheme are  as follows:-

Power generating capacity

Biogas plant capacity (in cubic metre)

Requirement of DPR

CFA/subsidy limited to the following ceiling or 35% of the project cost whichever is less

Administrative charges to Program implementing agencies, State Nodal Departments/Agencies/BDTCs for providing technical supervision, submission of project completion and commissioning reports of project and monitoring of the Project performance.

Power Generation

Thermal application

Power Generation

Thermal Application

3-20 Kw

30 m3
200 m3


DPR required above 10 kw (100 m3
biogas Plant size)

Rs. 35,000/- (Rupees Thirty five thousand only )per kw

Rs. 17,500/- (Rupees Seventeen thousand five hundred only)per Kw eq thermal/cooling

10% of the CFA

5% of the CFA

>20 kw up to 100 kw

Biogas plants of above 200 cu. Metre size or any combination of above plants or approved alternate matching capacity/design

DPR required

Rs. 30,000/- (Rupees Thirty thousand only) per kw

Rs. 15,000/- (Rupees fifteen thousand only )per Kw eq thermal/cooling

Rs. 2,00,000/-

Rs. 1,00,000/-

>100 kw up to 250 kw

1000 cu metre biogas plant of single digester or combination of above plants or approved alternate matching capacity/design

DPR required

Rs. 25,000/-(Rupees Twenty five thousand) per Kw

Rs. 12,500/-(Rupees twenty thousand five hundred only) per kw eq thermal /cooling

Rs. 3,00,000/-(fixed)

Rs. 1,50,000/-(fixed)

Procedure of implementation

The Biogas Power Generation (off-grid) and Thermal application Programme of MNRE will be implemented for setting up of proven standard design specifications and proven Biogas Plants including use of various material and equipment such as 100% Biogas engines, Biogas engines of 80:20 biogas – diesel ratio  for matching size electricity Generators and accessories and required input and output measuring systems of energy metering and biogas flow meter with precision and daily logging of operational hours of the biogas plants for their intended end usage. Such Biogas Plants would be operated for effective promotion of biogas based decentralized power generation in range of 3 kw to 250 kw and also for thermal/cooling applications as given in the Administrative Sanction -cum-Guidelines of the scheme. The Central Financial Assistance (CFA) will be provided based on power generation capacity of biogas plants worked out @ 1 m3 biogas generating 1.250 kw (min) of power or equivalent thermal energy generation capacity of biogas plants at half the applicable rate for power generation of biogas in cubic metre per day from the Biogas plants, set  up for the project and its optimal functionality by the end users, beneficiaries and plant operators.
The proposals of the project under the scheme will be developed and prepared with a complete knowledge of biogas generation through Anaerobic Digestion (AD) process from  the available and proposed feeds stocks and requirement of power /thermal load/cooling load and its handling management at the users end. The proposals will be submitted by the designated Programme implementing agencies (PIAs) of the scheme to the MNRE in the format as annexed to this Administrative Sanction-cum guidelines. The complete details of cattle holding at the proposed plant site/quantity of feeds stock available, estimated power to be generated with a minimum of 10 hours of operation per day (i.e in 24 hours durations) load distribution and connected load, details of biogas plants such as design type and model as well as daily design capacity of biogas generation with a particular kind of feed stock/mixed feed stocks, biogas plant digester Volume and HRT in days/hours. The performance rating of biogas engines, biogas generators, power control units, biogas scrubbers and the capacities of connected load of various appliances and biogas consumption rate in cubic metre per hour in case of the thermal application such as Biogas Burners and furnace/boiler capacity and cooling requirement in cubic metre per hour.

Pattern of Release of Central Financial Assistance funds.

The pattern of release of CFA funds would be, as given below:-
The funds would be released on re-imbursement basis after successful commissioning of the biogas based power/thermal plant as per the DPR norms (wherever DPR is required) receipt of utilization certificates, Audited Statement of Expenditure (duly audited by Chartered Accountant Firm and submitted on their letter head). The installation/commissioning of biogas based power plants should be completed within a year and in any case not more than 18 months from the date of sanction of the project. Project completion and commissioning report along with the required inspection reports and photographs of biogas plants, its equipment and accessories (gas flow meter, energy meter and scrubbers) and power generating systems should be submitted to MNRE by the designated Programme implementing Agency. The condition of successful commissioning of the plant would, inter-alia, imply generating of power with operational capacity of the sanctioned biogas plant with the power generations data for minimum 3 months period including the plant operational time period and units generated per day. The performance data of three months should indicate the operational capacity of the plants not less than 70% (minimum) of the rated capacity for 3 months period and not less than 80& of the rated capacity for subsequent consecutive 8 days (72 hours)