MNRE Approves Program on Energy from Urban, Industrial and Agricultural Wastes

The Ministry of New and Renewable Energy (MNRE) has approved a program called “Energy from Urban, Industrial and Agricultural Waste/Residue” with modified terms and conditions from 2017-18 to 2019-20.

The program aims at creating conducive conditions and environment with fiscal and financial regime to develop, demonstrate, and disseminate utilization of wastes and residues for recovery of energy.

The program has been launched with the objective of promoting setting up of projects for recovery of energy in the form of biogas, bioCNG, enriched biogas, power from urban, industrial, and agricultural wastes and captive power and thermal use through gasification in industries.

The program also aims to promote biomass gasifier based power plants for producing electricity to meet the demand of captive power and thermal needs of rice mills and other industries and villages for lighting, water pumping and micro-enterprises.



Central financial assistance (CFA) in the form of capital subsidy and grants-in-aid will be provided for biogas production from industrial waste, sewage treatment plants, urban and agricultural waste/residue through biomethanation.

CFA will be provided for power generation or production of bio-CNG, enriched biogas produced from industrial waste, sewage treatment plants, urban and agricultural waste or residue.

Installation of biomass gasifier-based projects in industry for producing electricity to meet the unmet demand of captive power and thermal needs of rice mills and other industries and villages for lighting, water pumping, and micro-enterprises can also avail CFA.

Total CFA of ₹780 million (~$11.37 million) will be released for biogas, bio-CNG, enriched biogas, power and biomass gasifier projects under the program between up to 2019-20.

CFA will be provided for promotional activities including research and development (R&D), resources assessment, technology upgradation and performance evaluation, etc.

The amount of capital subsidy would be calculated on the basis of installed capacity subject to maximum ceiling of ₹100 million (~$1.46 million)/project.

State nodal agencies (SNAs) would be provided an incentive/service charge at the rate of 1 percent of the eligible CFA (incentive maximum of ₹500,000 (~$7290.23)/project) to facilitate development of projects and their monitoring during implementation and post commissioning.

Financial support would be provided for R&D projects, setting of test centers and technology upgradation, performance evaluation to institutions and industries. This will be governed by the procedures and guidelines issued by MNRE.

The time-period for completion of a waste to energy project is 24 months, after which contract will be cancelled and no claim for CFA will be entertained. The timeline for completion of biomass gasifier projects is 12 months.

This is another step towards attaining the goal of doubling farmers’ income, import reduction, employment generation, waste-to-wealth creation. Recently, the central government’s cabinet, headed by Prime Minister Narendra Modi, approved the National Policy on Biofuels – 2018.

A program to support promotion of biomass-based cogeneration in sugar mills and other industries was also announced in May 2018, by MNRE’s biomass power division.