The Ministry of New and Renewable Energy (MNRE) is supporting the installation of bioenergy projects across the country under the National Bioenergy Programme (NBP) Phase-I, which was notified on 2 November 2022 with a total budgetary outlay of Rs 998 crore for the period from 2022–23 to 2025–26.
Under the programme, the government is providing Central Financial Assistance (CFA) to promote bioenergy projects spanning waste-to-energy, biomass, and biogas segments. New bioenergy projects continue to be promoted under NBP Phase-I to enhance energy security, support waste management, and increase the share of renewables in India’s energy mix.
In a written reply to the Lok Sabha on 17 December 2025, Union Minister of State for New and Renewable Energy Shri Shripad Yesso Naik said that the government has been consistently supporting bioenergy development over the past decade through multiple schemes. These include the National Biogas and Manure Management Programme during the 12th Five Year Plan, the New National Biogas & Organic Manure Programme from 2018–19 to 2020–21, schemes promoting grid-interactive biomass power and bagasse cogeneration in sugar mills, programmes for energy recovery from urban, industrial and agricultural waste, and initiatives supporting biomass-based cogeneration in sugar mills and other industries.
Under the Waste-to-Energy Programme of the NBP, CFA support includes Rs 0.25 crore for biogas generation projects with a capacity of 12,000 cubic metres per day, and up to Rs 4 crore for BioCNG generation projects with a capacity of 4,800 kg per day from new biogas plants. Power generation projects based on biogas are eligible for CFA of up to Rs 0.75 crore per MW for new plants, while power projects based on bio and agro-industrial waste can receive Rs 0.4 crore per MW. Biomass gasifier projects are also supported for electrical and thermal applications.
The Biomass Programme provides financial assistance for briquette and pellet manufacturing plants, including non-torrefied and torrefied pellet units, as well as non-bagasse cogeneration projects, with project-wise caps specified under the scheme. The Biogas Programme supports both small and medium-scale biogas plants for power generation and thermal applications, with higher CFA provisions for projects in the North-Eastern Region, island territories, registered gaushalas, and SC/ST beneficiaries.
According to MNRE data, bioenergy capacity additions over the last ten years include 2,361.43 MW of biomass-based power projects and 227.56 MWe of waste-to-energy capacity. During the same period, a total of 2,88,079 biogas plants were installed across the country.
State-wise data shows Maharashtra leading in biomass power capacity with over 1,073 MW, followed by Karnataka, Punjab, Uttar Pradesh, and Tamil Nadu. Maharashtra, Karnataka, Madhya Pradesh, Andhra Pradesh, and Telangana also recorded a significant number of biogas installations during the period.
The ministry said the continued rollout of the National Bioenergy Programme is expected to further accelerate deployment of bioenergy projects, supporting India’s renewable energy targets while addressing agricultural residue management, waste disposal, and rural energy needs.
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