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Ministry of New and Renewable Energy
(Bio-Energy Technology Development Group)

Scheme:            Biogas based Distributed / Grid Power Generation Programme

1.1     Introduction 

Biogas technology provides an alternative source of energy mainly from organic wastes. It is produced when bacteria degrade organic matter in the absence of air. Biogas contains around 55-65% of methane, 30-40% of carbon dioxide and small quantities of Hydrogen, Nitrogen, Carbon Monoxide, Oxygen and Hydrogen Sulphide. The calorific value of biogas is appreciably high (around 4700 kcal or 20 MJ at around 55% methane content). The gas can effectively be utilized for generation of power through a biogas based power-generation system after dewatering and cleaning of the gas. In addition, the slurry produced in the process provides valuable organic manure for farming and sustaining the soil fertility.

The Ministry has started a scheme “Biogas based Distributed / Grid Power Generation Programme” from 2005-06 (4th January 2006) with a view to promote biogas based power generation, especially in the small capacity range, based on the availability of large quantity of animal wastes and wastes from forestry, rural based industries (agro / food processing), kitchen wastes, etc., 

1.2     Objectives

The objectives of programme are as follows:-

(i)            Biogas based power units can be a reliable decentralized power generation option in the country. In order to promote this route of power generation, specifically in the small capacity range (3 kW to 250 kW), based on the availability of large quantity of animal wastes and wastes from forestry, rural based industries (agro/food processing), kitchen wastes, etc;

(ii)          A number of projects of different capacities and applications will be takenup for refining the technical know-how, developing manpower and necessary infrastructure, establishing a proper arrangement of operation & maintenance and large scale dissemination.

(iii)         To mitigate Climate Change by preventing black carbon and methane emissions.

1.3     Implementation strategy: 

   The programme would be implemented through nodal departments / agencies of the States / UTs, KVIC, institutions and NGOs. The projects to be taken up by any village level organization, institution, private entrepreneurs etc in rural areas as well as areas covered under the Remote Village Electrification (RVE) programme of MNES other than the industries and commercial establishments covered under Urban, Industrial & Commercial Applications (UICA) programmes for sale of electricity to individual / community / grid etc. on mutually agreeable terms.  Installation of projects will be encouraged only if specific responsibility is taken upright from the initiation of project by the institution including for operation and maintenance for the specified period as per DPR norms or otherwise for a minimum period of ten years. 

1.4     Training & Awareness Promotion

The programme provides support for a variety of workshops, seminars, meetings, training programmers to the implementing agencies/specialized organizations/Biogas Development & Training Centers (BDTCs) for developing the required specifications and standards, discussions/deliberations on the performance of systems, setting up operation and maintenance mechanism, training of required manpower, capacity building, business meets for the prospective industries, etc. with the ultimate objective of promotion of power generation based on biogas in the country.

The quantum of financial assistance to be provided by Ministry of New and Renewable

Energy (MNRE) for conducting these programmers will be decided on the basis of nature & duration of the programme, number of participants, etc. The maximum assistance, however, is limited to `1,00,000 per event.

1.5     Central Financial Assistance (CFA):  

 The central financial assistance for such projects will be limited to a maximum of Rs.30000 to 40000 per kW depending upon capacity of the power generating projects in the range of 3 kW to 250 kW of different rating limited to 40% of the plant cost.

 Power generating capacity Biogas plant capacity  Maximum support for preparation of DPR CFA/subsidy limited to the following ceiling or 40% of the cost of the system whichever is less. Administrative Charges to State Nodal Department / Agencies/BDTC’s for providing technical, supervision, training support and to initiate action on power purchase agreement with state electricity board/power purchasing companies and submission of project completion and monitoring report of successful operation. 
3-20kW 25 M3 to 85 M3 No DPR required Rs. 40,000 per kW 15% of the CFA (up to 20 kW capacity for which no assistance for DPR is provided), 
>20kW up to 100kW Any combination of above plants or approved alternate capacity / design  Rs. 20000 per plant Rs. 35,000 per kW   10% of the CFA (> 20 kW - 250 kW) 
>100kW up to 250 kW Any combination of above plants or approved alternate capacity / design Rs. 1,00,000 per plant above 100 kW Rs. 30,000 per kW

   The programme provides support for a variety of workshops, seminars, meetings, training programmes to the implementing agencies / specialized organizations / Biogas Development & Training Centres (BDTCs). 

1.6     Pattern of Release of funds: 

Central  Financial  Assistance  (CFA)  for  projects  and  service  charges  to  State  Nodal  organizations/implementing agencies/BDTC’s are given at Annexure-II and pattern of release of funds would be as follows:

  1. 50 per cent of the eligible CFA and service charges will be released to the State Nodal Department/Agency/organization/BDTC’s with the sanction order.
  2. The  balance  50%  of  the  eligible  CFA  and service charges will  be  released  after  successful commissioning  of  the  biogas  power  plant  as  per  the  DPR  norms (wherever DPR is required),  receipt  of utilization  certificates,  audited  statement  of  expenditure. Project  on  completion, requires inspection report submitted to  MNRE by an  authorized  agency  of MNRE .The  condition of successful commissioning  of  the  plant would,  inter-alia,  imply generation of power with operational capacity  of 10 kWh/day/kW of sanctioned capacity for 3 consecutive days.
  3. In case the project is set-up by the developer through his own resources, the entire eligible CFA could be released to the project developer after receipt of the successful commissioning and operational report from MNRE state Nodal departments/ Agencies, KVIC and BDTC’s along with  other documents and meeting conditions as mentioned under para 4 (ii) above.
  4.  For  preparation  of  DPR  for  power  projects,  (wherever  required)  and  for programmes  relating  to  Training  &  Awareness  Promotion,  50%  of  the  eligible CFA  will  be  released  to  implementing  organizations    along with  the  sanction order. The balance will be released on receipt of the utilization certificates, audited statement of expenditure and the final report at the time of final acceptance and settlement of the expenditure account of the project as per the approved norms.

1.7     Monitoring Mechanism

Monitoring  of  the  Bio-gas  based  power  projects  would  be  done  based  on  half yearly/annual progress reports as well as monitoring by SNA/ an authorized agency of MNRE. The project developers would extend all help required in monitoring of the projects.

1.8     Technology: 

1.8.1     Components of a Biogas Based Power Generation System (BPGS)

• Biogas Plants

• Gas Cleaning System

• Engine with alternator

• Control Panel

• Machine Room / Shed

• Manure management system / protocol

1.8.2     Biogas plants

Standard KVIC floating drum model (vertical or horizontal type) would be supported. The eligible item associated with a biogas plant includes:

• Digester, gas holder and accessories

• Feed / slurry handling system (composed pits) with water supply and storage

• Initial feed

• Gas outlet

1.8.3     Gas Cleaning System

The biogas contains hydrogen disulphide gas. Concentration of hydrogen disulphide in access of 0.1 % is harmful to the engine. Hence it is necessary to remove hydrogen sulphide before the gas is taken to the engines.

1.8.4     Engine with alternator

• 100% biogas engines

• Micro-turbines

• Standard dual fuel engines preferably with bio-diesel in place of diesel.

1.8.5     Control / Monitoring Panel

BIS Standard control / monitoring panel would be supported.

1.8.6     Machine Room / Shed

A  proper  machine  room  with  shed  would  be  planned  as  per  standard  practices.  The  biogas generated  in  the  digester,  if  necessary  can  be  stored  in  a  suitable  storage  unit  or  membrane  type storage balloon

1.8.7     Manure management system /protocol management is an integral part of a biogas based power generation system for arriving at an economically feasible operation level. Marketing strategy of the biogas slurry or the value added bio-manure is required to be defined new efficient system for production of biogas, cleaning of the gas and conversion of the gas to electricity, etc. can also be used subject to prior approval of the Ministry. dome / Deenbandhu  and other approved models of  biogas plant up to capacity of 10 – 90 cubic meter per day may also be propagated as per design dimensions and standards for the same developed at BDTC, PAU, Ludhiana, Punjab and medium and large capacity approved models of Biogas plants for digestion of cattle dung and other suitable biomass. Approval of MNRE may be sought for any new model of Biogas plant before submission of project proposal(s) under these guidelines.

1.9     Potential and Achievement

A cumulative total of 348 projects with Biogas generation capacity of 65,287 m3 and power generation capacity of 6.62 MW have been sanctioned out of which 98 biogas based power generation plants have been installed in the country with power generation capacity of 0.793 MW. State-wise information on achievement vis-a-vis potential is given in Annexure-I as per figures of 28-02-2011

1.10  Details:           

1.10.1       Eligibility criteria:  

The programme is implemented through State Nodal Agencies (SNAs) with the involvement of KVIC, Institutions, Energy Service Companies (ESCOs), Co-operative, Panchayats, NGOs, manufactures or entrepreneurs etc.  

1.10.2       How to avail:  

The projects to be taken up by any village level organization, Panchayats, institution, private entrepreneurs, industries, etc. in rural areas other than the industries and commercial establishments covered under urban, industrial and commercial applications (UICA) programmes for sale/use of electricity to individual, community, grid etc. The proposals have to be submitted in the prescribed format to the concerned State Nodal agencies who in turn would forward to the Ministry with their recommendations for seeking Central Financial Assistance (CFA) under the scheme. 

Contact Person:

Shri Dr. A.R. Shukla, Advisor (Telefax: 91-11-24361604, E-mail: shuklaar[at]nic[dot]in)
Shri A.Haribhaskaran, Scientist ‘B’ (E-mail: hari[dot]a[at]nic[dot]in)


State-wise Biogas Based Distributed/ Grid Power Generation Projects installed since inception till 31-03-2011

Sl. No. Name of the State Installed Under installation Grand Total
Nos. M3 KW Nos. M3 KW Nos. M3 KW
1. Andhra Pradesh 15 1540 149 49 5595 647 64 7135 796
2. Bihar -- -- -- 2 50 6 2 50 6
3. Goa -- -- -- 15 1500 180 15 1500 180
4. Gujarat 1 200 12.75 30 2550 300 31 2750 312.75
5. Haryana -- -- -- 1 2200 115 1 2200 115
6. Himachal Pradesh -- -- -- 1 180 15 1 180 15
7. Karnataka 5 590 66.00 36 6575 695 41 7165 761
8. Maharashtra 16 720 74.5 35 5420 563 51 6140 637.5
9. Punjab 5 625 72.5 19 1645 181.5 24 2270 254
10. Rajasthan -- -- -- 7 455 50.5 7 455 50.5
11. Tamil Nadu 10 1305 154 42 30755 2934 52 32060 3088
12. Tripura -- -- -- 1 32 3 1 32 3
13. Uttarakhand 3 205 21 3 180 22 6 385 43
14. Uttar Pradesh -- -- -- 8 960 109 8 960 109
15. Madhya Pradesh 1 350 25.00 1 35 3 2 385 28
16. Chhattisgarh 1 170 45.00 -- -- -- 1 170 45
17. Kerala 40 1110 113.50 -- -- -- 40 1110 113.5
18. West Bengal 1 340 60.00 -- -- -- 1 340 60
Total 98 7155 793.25 250 58132 5824 348 65287 6617.25