Recently the Government of Madhya Pradesh launched a comprehensive biofuel scheme to boost the production and use of Compressed Biogas (CBG), supporting sustainable energy and rural development.

About the Biofuel Scheme of Madhya Pradesh (2025)

• Objective: To encourage investment in biofuel infrastructure, ensure biomass availability, improve waste management, and support rural livelihoods through a sustainable energy ecosystem.
• Capital and Infrastructure Support: Offers investment promotion assistance (10–40%), infrastructure grants (up to ₹5 crore), and green industrialisation incentives (up to ₹10 crore for ZLD systems).
• Land and Utility Benefits: Includes land subsidies, stamp duty reimbursement, 100% exemption on electricity duty, and support for approach road development.
• Feedstock Security and Ecosystem Development: Implements a “one plant, one block” policy, biomass sourcing contracts via SATAT, and support for organic manure management.
• Digital and Distribution Initiatives: Proposes an IT-based portal, enables CBG pump installation, and mandates licensed sale of biomanure to support offtake and usage.

Significance of the Scheme

• Supports rural economy by ensuring farmer participation and income through waste monetization.
• Reduces waste through organized collection from markets and gaushalas.
• Promotes green energy transition and rural industrialisation.
• Helps manage the FOM surplus, a major viability challenge for CBG units.
• Encourages public-private partnerships and builds investor confidence in the bioenergy sector.
  

About Biofuel

• Biofuels are renewable fuels derived from organic matter (biomass) and serve as eco-friendly alternatives to fossil fuels, aiding in reducing greenhouse gas emissions.
• Compressed Biogas (CBG): CBG is a purified form of biogas with over 90% methane content, comparable to compressed natural gas (CNG), and used as a clean automotive and domestic fuel.
• Sources of Biofuel

National Schemes to Promote Biofuels

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