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Implementation of Biomass Gasifier based projects for Rural Areas and Grid Connected during the remaining period of the 12th Five Year Plan - 2014

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Nodal Agency

Ministry of New and Renewable Energy

Applicable Technologies

Grid-connected biomass gasifier based projects for rural areas.

Policy Period

12th Five Year Plan.

Targets under Policy

Not available

Eligibility Conditions

  • Grid connected power plants with 100% producer gas engines
  • Besides, biomass based grid connected Boiler-Turbine-Generator (BTG) projects, preferably at tail end of the grid and having a decentralized distribution component
  • The maximum installed capacity of each such project would be 2 MW. 

Incentive Amount

Distributed/off-grid power projects in rural areas and grid- connected power projects with 100% producer gas engines or biomass based combustion projects.

Rs.15,000 per kW

Biomass gasifier projects for distributed/off-grid for rural areas and grid-connected power projects. For ensuring regular availability of biomass, provision is made for collection, processing and storage, operation  and maintenance including compulsory AMC for 5 years after the guarantee period.

Rs.1.50 lakh per 50 kW

Support towards lighting devices and distribution network

Financial support limited to a maximum of 3 km, i.e. Rs.3 lakh per project (@Rs.1 lakh per km).

Support towards project formulation

Financial incentives of Rs.5000 per project to banks/FIs, manufacturers, promoters, consultants and service providers for developing firmed up and bankable proposals for a minimum of 10 projects and above.

Service charges for verification and certification Rs. 10,000 per 100 kW, subject to maximum of Rs.1 lakh for a project of 1 MW capacity. Minimum service charge, Rs. 10,000 per site.

Preparation of Detailed Project Report (DPRs) for centralized distributed/grid-connected/captive power generation projects


Projects between 100-500 kW capacities - Rs.0.50 lakh

Projects above 500 kW capacities- Rs.1.00 lakh

DPR is not required for the projects below 100 kW capacities.


HRD & Training

O&M Technician’s Course

Gasifier Entrepreneur Development Course


Awareness promotions such as organization of workshops, seminars etc


@Rs.2 lakh per course


@Rs.3lakh per course


Maximum up to Rs.3 lakh

Support for gasifier suppliers/manufacturers for establishing service centres in areas where cluster of systems (minimum 10), have been set up in one district/region.




Rs.5 lakh (one-time funding)

Special category states and islands

20% higher CFA

Release of Incentive

  • CFA will be disbursed post-commissioning, through one instalment, directly to the promoters or lending institutions/FIs after receipt of commissioning and verification reports and submission of the requisite documents/reports.
  • For programmes relating to Training & Awareness Promotion, 75% of eligible CFA will be released to implementing organizations along with sanction order. The balance will be released on receipt of utilization certificate, audited statement of expenditure and final report.
  • Service charges for independent verification agency (IVA) or state nodal agencies (SNAs), as the case may be, would be provided after commissioning and certification by the designated agencies as per guidelines.

Implementing Agencies

State nodal agencies/departments, energy service companies (ESCOs), co-operatives, panchayats, SHGs, NGOs, manufacturers or entrepreneurs, independent power producers, promoters and developers, etc. 

Additional Information

  • Project proposals, as per guidelines, could be submitted online/directly to the Ministry.
  • A project advisory committee (PAC) set up by the Ministry would evaluate and recommend proposals for issue of in-principle approval, based on the programme guidelines, project details, commissioning schedule.
  • The Ministry will also, separately, empanel independent verification agencies (IVA) other than state nodal agencies.

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