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Biogas Power (off-grid) Programme for decentralized power generation applications and thermal applications during 2015-16 and the remaining period of 12th Five Year Plan - 2016-17

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Nodal Agency

Ministry of New and Renewable Energy

Applicable Technologies

Off-grid biogas projects

Policy Period

12th Five Year Plan

Incentive Amount


CFA/subsidy limited to the following ceiling or 40% of system cost, whichever is less

Administrative charges to state nodal depts./agencies /BDTCs for technical, supervision, training support, submission of project completion and monitoring report of successful operation


Power Generation

Thermal Applications

Power Generation





10% of CFA

5% of CFA











Release of Incentive

CFA will be released after completion of project and submission of completion report which includes complete technical details, photographs, commissioning report, performance report of 3 months, inspection report by MNRE.

Eligibility Conditions

  • Capacity range – 3 kW to 250 kW.
  • Biogas projects for power generation and thermal applications.
  • Projects to be taken up by village level organizations, institutions, private entrepreneurs etc., in rural areas and areas under remote village electrification programme of MNRE.

Additional Information

  • The proposal submission format is enclosed in the scheme document.
  • The installation/commissioning of biogas power plants should be completed within a year and not longer than 18 months from the project sanction date.
  • The condition of successful commissioning of projects implies project operation for 3 months, including 72 hours continuous operation at 80% minimum rated capacity. The project developer/implementing agency will be required to provide data of its biogas power generation and performance on a six-monthly basis to MNRE.
  • The plant will be monitored for proper performance by the implementing agencies, which includes quantity of feedstock fed into biogas plants, biogas generation and power generation/units generated, and operating hours and usage of the same, on daily basis. The plants will be operated for a minimum of 10 hours per-day.


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