IBA pitches for ₹10,000 per unit subsidy for household biogas plants

Business Standard

13-07-2025

Indian Biogas Association has pitched for a scheme to provide ₹10,000 per unit subsidy for reviving 5 million biogas units, which are ready with basic infrastructure, saying it can spur mass adoption of the cleaner fuel, especially in rural India.
Indian Biogas Association (IBA) Chairman Gaurav Kedia told PTI that the overall government spend on the scheme would be ₹5,000 crore, which could be recovered in two years.
He stated that IBA has called for the government to lead a bold, forward-looking attempt to support 5 million biogas units across the country. Infrastructure for these units is already in place and incentives are needed to spur mass adoption in rural India, he noted.
"A focused, mission-driven approach like Swachh Bharat Abhiyan can deliver meaningful results in this direction. Most of these systems are underutilized or idle because of insufficient funding, maintenance, and long-term incentives.
It is high time we move from potential to performance and convert biogas into a real household fuel of the future. IBA calls for a policy revolution to make biogas systems not only accessible but rewarding," he said.
As under the Swachh Bharat Mission (Gramin), where the Government of India provides a subsidy of ₹12,000 to eligible rural households for constructing individual household toilets (IHHL), a similar model could be considered for reviving small biogas plants, assuming a revival cost of approximately ₹10,000 per unit, he suggested.
He informed that the IBA will propose to the government a one-time grant of ₹10,000 per plant to restore non-operative units to bring dead assets to life, increase clean energy production and enhance the return on public and private sector investments.
Given that rural Biogas plants can substitute the subsidized LPG cylinde₹being provided to rural households (12 cylinders per year at ₹603 per cylinder under the Ujjawala Yojana), Biogas can replace free LPG cylinders each year and could help save around ₹3,618 crore per year -if all these 5 million biogas plants become functional, he pointed out.
This provides the assurance of continuous cooking fuel, enhances user confidence, and promotes large-scale acceptance by minimising the perceived risk of using biogas alone, he noted.
Kedia suggested that the quarterly maintenance check-ups should be implemented by the government on biogas units to provide them with long-term viability and smooth operation.
As most breakdowns occur due to minor, avoidable faults, regular check-ups will make plants operate at peak efficiency and enhance user satisfaction, he suggested.
With this preventive measure, plant life will be extended, performance enhanced, rural employment created, and misuse of subsidies prevented, he stated.
The proposed initiative is aimed at realising the potential of Biogas in India through the means of small-scale biogas plants scattered throughout the country. It is more about changing rural lives, managing solid waste, utilising the digestate as organic manure, and enabling a sustainable future at the grassroot level," Kedia said.
One biogas plant can save almost 6 tonnes of CO2 annually and lower firewood use by 5 tonnes, curbing indoor air pollution and felling of trees.
States, on the economic front, could save more than ₹50,000 crore jointly through improved waste management, healthcare cost savings, and import substitution.
With the appropriate nudge, India can minimise reliance on LPG imports while building a circular, renewable energy economy. IBA will be presenting the proposal to the government soon, he pointed out.
"If we get our investments right, India can become the world benchmark," said Kedia, adding that the IBA also urged harmonious integration of this proposed initiative with flagship programs such as GOBARdhan and SATAT, to facilitate easier implementation and impact.
The IBA is the largest and professional biogas association for biogas industry stakeholders, including technology providers, project developers, plant operators and planners of biogas plants.
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