Government Subsidies for Biomass Gasification Power Plants
Biomass gasification power plants can avail capital subsidies from the government. Comprehensive details on the same are provided below.
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Type |
Percent of cost |
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A |
BIOMASS GASIFIER WITH REACTOR, BLOWER, MANUAL FEEDING AND MANUAL CUTTER ONLY For Projects upto 1MW capacity (3 MWth, 2.6 million kcal/hr) having CFA on benchmark on cost of Rs.4.25 lakhs for gasifier units of 100 KW |
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A1 |
Unit size upto 100 KWe (300 KWth, 2.5 lakhs kcal/hr) Owned by Co-operative Panchayat, NGOs & Central/State Agencies (Socially Oriented Projects) |
50
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Owned by Individual(s) / Entrepreneur(s) |
30 |
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A2 |
Unit Size > 100 kWe but < 200 kWe (600 KWth, 5.00 lakh kcal/hr) Owned by Co-operative Panchayat, NGOs & Central/State Agencies (Socially Oriented Projects) |
55 |
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Owned by Individual(s)/Entrepreneur(s) |
35 |
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A3 |
Unit Size > 200 Kwe Owned by Co-operative Panchayat, NGOs & Central/State Agencies (Socially Oriented Projects) |
60 |
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Owned by Individual(s) / Entrepreneur(s) |
40 |
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B |
HI-FOCUS AREAS, ISLANDS, NE STATES, LADAKH & SC/ST USERS Additional Financial Assistance(Over and above) |
10 |
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C I
II |
COMPULSORY ADD-ONS Instrumentation for Online Monitoring (System > 100 KWe) a. Hours of Gasifier Operation (hours) Rs.15000/- b. Output (kW) c. Other Fuel (Diesel) Consumption (Ltrs/hr.) |
25% subject to maximum of Rs:15000
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Total AMC for 5 years (including warranty) |
5% of above |
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D |
OPTIONAL ADD-ONS |
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Cooling and Cleaning Subsystem Minimum Performance Level for gas cleaning a. Gas Quality : > 4.0 MJ/nm3 b. Tar Content : < 100 mg / nm3 c. Particulate Matter : < 50 mg / nm3 Minimum Performance Level for gas cooling; Temperature at Engine Outlet: Ambient Temperature ± 50° C or 400° C (Maximum) |
25% of the sub systems cost or Rs. 500/- per kWe/kWth whichever is less
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Automation for Startup (Battery based), Feed Handling and Ash Handling - for systems of Unit Capacity > 200 kW |
25% of the sub systems cost or Rs. 500/- per kWe/kWth whichever is less |
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Biomass Pre Processing / Fuel Preparation Equipment-For systems of Unit Capacity > 200 kW a) Preprocessing Equipment b) Fuel Preparation (Briquetting) Equipment (only in case of village electrification projects of Unit Capacity ³ 500 kW). |
25% of the sub systems cost or Rs.500/- per kWe/kWth whichever is less 25% of the sub-systems cost or Rs. 1000/- per kWe whichever is less |
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Effluent treatment for the gasifier cooling water Treatment of gasifier cooling water for recycling |
25% of the sub systems cost or Rs.500/- per kWe/kWth whichever is less |
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E |
OPTIONAL ADD-ONS FOR ELECTRIFICATION |
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Power Distribution Subsystem (Local) for village electrification projects |
100% |
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Grid Inter-connection Subsystem For electrification projects (> 100 kWe) a) Socially oriented projects b) Individual/Entrepreneurs c) For industrial application projects (> 200 kWe) |
50 25 25 |
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Cost of Gas Engine (peak power delivered to be Specified) |
100 |
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Dual Fuel Gensets a) For all village electrification projects. (Diesel replacement > 70%) i) Socially oriented projects ii) Individual/Entrepreneurs b) For industrial applications > 200 kW |
50 25 25%(or @ Rs. 5,000/- per kWe, whichever is less for all categories |
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F |
OPTIONAL ADD-ONS FOR PUMPSETS |
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Cost of Pump-sets Project Size above 25 HP (Diesel replacement > 70%) |
25% of the cost of the pumpset or Rs.1500/- per HP whichever is less. |
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Project Size below 25 HP (Diesel replacement >70%) |
25% of the cost of the pumpset or Rs.1200/- per HP whichever is less. |
Related Links
- Why Biomass Power?
- Indian Power Production Scenario
- Need for Biomass Power in India
- Benefits of Biomass power
- Potential for Biomass Power in India
- Biomass Power in India- Key Highlights
- Biomass-based Power Production Methods
- Biomass Gasification Technology
- Current Status of Biomass Gasification in India
- Government Incentives for Biomass Power Projects
- Depreciation Benefits for Biomass Gasification Power Plants





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