NEW DELHI: Indian Biogas Association (IBA) has recommended a Rs 10,000 crore fund to provide capital subsidy for the biogas industry in the forthcoming Budget.
The association also urged the government to increase the subsidy by 50 per cent to Rs 6 crore per 4.8 TPD of compressed biogas (CBG) and suggested capping the upper cap at Rs 25 crore per project, according to an IBA statement issued on Sunday.
IBA will share the recommendations with the Ministry of New & Renewable Energy and the Ministry of Finance, it added. The industry body also raised the demand at various forums before the general Budget.
IBA has proposed a minimum 5 per cent mandated FOM (fermented organic manure) blending in overall fertiliser application by 2028, and further ramped up in a phased manner to 10 per cent by 2030.
For the Union Budget 2026, the Indian Biogas Association would like to advocate for positioning of the biogas/CBG sector as a fast-maturing pillar of green growth, which now needs deeper fiscal support, faster implementation, and easier finance to unlock large-scale private investment and rural income opportunities, the statement said.
It has also called for scaling up project incentives by raising Central Financial Assistance (CFA).
The CBG plant’s capex outlay has increased by more than 50 per cent since the launch of the CFA (Central Financial Assistance) (subsidy) scheme in 2014, due to various factors, it pointed out.