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The Government of Uttar Pradesh in September 2022 declared the policy with the main objective of encouraging setting up Compressed Biogas Plants ,Bio Diesel production plants and Bio Coal production plants utilising Bioenergy waste.
Objective
The Uttar Pradesh Bio-Energy Policy 2022 aims to establish 350+ waste-to-energy plants by 2026-27, targeting 1,000 tonnes/day of Compressed Bio-Gas (CBG), 4,000 tonnes/day of Bio-coal, and 2,000 tonnes/day of Bio-diesel/ethanol. Key incentives include capital subsidies up to ₹20 crore, 100% electricity duty waivers, and 30-year land leases for developers.
- Reduce reliance on fossil fuels and promote waste-based energy production.
- Address the burning of agricultural waste (Parali) and improve soil fertility by utilizing waste.
- Increase farmer income through the sale of agri-residue to energy plants.
- Establish at least one bioenergy plant in every Tehsil.
Benefits / Subsidy
• Main incentives available on setting up these plants in addition to incentives available from Govt of India .
• Incentive of Rs 75 lakh/tonne to the maximum of Rs 20 Crore on setting up Compressed Biogas (CBG) Production Plant.
• Incentive of Rs 75000/tonne to the maximum of RS 20 Crore on setting up of Bio-Coal Production Plant.
• Incentive of Rs 3 lakh/ to the maximum of Rs 20 Crore on setting up Bio diesel Production Plant .
• State subsidy available to the tune of 30 % of cost maximum Rs 20 lakhs on procurement of Boiler Recker and trolley equipment’s. This subsidy will be available in addition to 50 % subsidy available from Central Government in Agriculture mechanisation scheme.
• Financial support available as Infrastructure subsidy on construction of maximum 5 KM of Approach road with maximum investment of Rs 50 Crore.
• Exemption on development charges levied by development authorities.
• Exemption of 100 % Stamp duty and Electricity duty.
• Government land on lease rent of Rs 1 per acre per annum available for setting up Bio Energy industry and storage of feedstocks.
• Permission under change in land use and Land ceiling Act deemed.
Eligibility
Eligible Entities: Companies, cooperatives, and firms producing energy from waste materials, including agricultural waste, urban solid waste, and sugar mill waste.
Approved Technology: Projects must utilize technologies approved by the Ministry of New and Renewable Energy (MNRE).
Environmental Compliance: Units must strictly follow environmental laws and regulations
Application Process
Nodal Agency: UPNEDA, Deptt of Addl Sources of Energy
