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Programme on Energy from Urban, Industrial and Agricultural Wastes /
Residues during 12th Plan period - 2013

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Nodal Agency

Ministry of New and Renewable Energy

Applicable Technologies

Energy projects from urban, industrial and agricultural wastes/residues.

Policy Period

12th Five Year Plan.  (extended till 30th Sept 2017

Targets under Policy

Not available

Incentive Amount

1. Power generation from municipal solid waste

Rs.2 crore/MW (max.Rs.10 crore/project).

2. Biogas power generation from sewage treatment plant or through biomethanation of urban and agricultural waste/ residues including cattle dung, or production of bio-CNG.

Rs.2 crore/MW or bio-CNG from 12000 m3 biogas/day (max. Rs.5 crore/project).  


3. Biogas generation from agricultural, industrial and urban wastes/residues.


Rs.0.50 crore/MWeq. (12000 m3 biogas/day) (max. Rs. 5 crore/project).


4. Power generation from biogas (engine/gas turbine route) and production of bio-CNG for gas cylinders.


Rs.1 crore/MW

or bio-CNG from 12000 m3 biogas.

(max. Rs.5 crore/project)



5. Power generation from biogas, solid industrial, agricultural waste/residue excluding bagasse, through boiler + steam turbine configuration.

Rs.0.20 crore/MW (max. Rs. 1 crore/project).

Financial assistance would be provided for organizing training courses, business meets, seminars/workshops and publicity/awareness, on case-to-case basis, subject to a maximum of Rs. 3 lakhs per event/activity.

Eligibility Conditions

Projects based on:

  • Any bio-waste from urban, agricultural, industrial/agro – industrial sector (excluding bagasse).
  • Co-generation/power generation and production of bio-CNG from biogas.
  • Municipal solid waste based projects selected through transparent competitive procedure.

Other conditions:

  • Mixing of other renewable wastes, including rice husk, bagasse, sewage, cow-dung, other biomass and industrial effluents (excluding distillery effluents) will be permissible.
  • In MSW to power projects, any waste of renewable nature or biomass can be mixed to the extent of 25%, based on gross calorific value. Use of maximum 25% of conventional fuels would be allowed in biomass co-generation (non-bagasse) projects based on agricultural wastes and residues, excluding bagasse.
  • Projects for generation of power from biogas will be based either on 100% biogas engines or steam turbines with a minimum steam pressure of 42 bar.
  • Projects based on waste-to-energy conversion technologies, namely, bio methanation, combustion, gasification, pyrolysis or a combination thereof.
  • Projects based on biomethanation of MSW should be taken up only on segregated/uniform waste unless it is demonstrated that in Indian conditions, the waste segregation plant/process can separate waste suitable for biomethanation.

·         There will be no minimum/maximum limit on capacity of projects supported under this programme, except that cattle dung-based power generation projects of up to 250 kW capacity will not be considered under this programme.

Implementing and Monitoring Agency
  • Implemented by state nodal agencies, urban local bodies/municipal corporations, private and public sector enterprises and organizations as well as NGOs including energy service companies (ESCOs).
  • State nodal agencies will closely monitor project execution and provide guidance for its timely completion, in addition to submitting periodic progress reports to MNRE.
  •     MNRE may also monitor the progress of project implementation and performance through a monitoring committee consisting of representatives from MNRE, financial institution(s)/banks, technical institutions and state nodal agencies.




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