Financial assistance to CBG producers for biomass aggregation machinery
Funded, but no order confirms it is still open: Union Expenditure Budget 2026-27 (Feb 2026, Demand No. 76 (Ministry of Petroleum and Natural Gas), item 23 Scheme for providing financial support for collection of biomass, BE 2026-27 ₹100.00 crore)
A grant to compressed biogas (CBG) plants that run mainly on crop residue: 50% of the cost of balers, rakes and other biomass collection machines, up to ₹90 lakh a set and ₹9 crore a project — so straw is bought from farmers instead of burnt.
- Lead benefit
- 50%of the cost, at most
- Components
- 1each read from the document
- Who can apply
- 4kinds of applicant
- Closing date
- Closed on 30 Sept 2026see “When to apply”
What it pays
50% of the cost of one set of biomass collection machines, at most ₹90 lakh a set; a project gets ₹1.8 crore per 4 tonnes a day of CBG, at most ₹9 crore.
What the document says, word for word
Enter the cost of one set; the number of sets is fixed from the biomass need in your DPR, and three sets with small balers count as one set with a large baler (cl. 4.1.3, 5.2(vi)). Machines must not already have any central or state subsidy (cl. 5.1(iv)) and cannot be sold for 5 years (cl. 7.1).
“4.1.1 A maximum financial assistance of 50% of the procurement cost of biomass aggregation machinery or Rs. 90 lakh per set (whichever is less) will be admissible as grant to a CBG producer. … 4.1.4 The financial assistance of Rs. 1.8 crore for 4 TPD CBG capacity project would be provided with a capping of Rs. 9 crore per project on pro rata basis.”How much can I claim?
This clause does not fund this applicant type (cl. 4.1.1 and 4.1.4).
Enter the cost of one set; the number of sets is fixed from the biomass need in your DPR, and three sets with small balers count as one set with a large baler (cl. 4.1.3, 5.2(vi)). Machines must not already have any central or state subsidy (cl. 5.1(iv)) and cannot be sold for 5 years (cl. 7.1).
Who can apply
- Agri entrepreneur
- Agri startup
- Cooperative
- FPO
Papers you need
- Detailed Project Report of the CBG project (cl. 4.1.3)
- After purchase: bill, sale invoice, registration / laser-cut serial number and photographs of each machine (cl. 5.3(vi))
How to apply
- The CBG plant must use at least 50% agri residue, have at least 2 tonnes a day of CBG capacity, be registered on the GOBARdhan portal, and (if under construction) be at least 50% built (cl. 5.1).
- Apply on the designated portal before buying the machines, between the 1st and 30th day of each quarter (cl. 5.1(v), 5.2(ii)).
- After approval, buy the machines within six months, upload the bill, invoice, serial numbers and photos within two weeks, and the grant is paid to your bank or loan account after physical verification (cl. 5.3).
Applying is free. Never pay anyone to apply for you.
When to apply
Applications each quarter from the 1st to the 30th day; the guidelines’ last date is 30.09.2026 “or as extended from time to time” (cl. 5.2(ii)–(iii)). No extension had been published when we checked on 6 Oct 2026.
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.