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Subvention Scheme launched by MNRE to scale up waste to energy biomethanation projects

The Ministry of New and Renewable Energy (MNRE) along with the United Nations Industrial Development and Global Environment Facility(GEF)  has launched a funded loan interest subvention scheme for the demonstration and scaling up of new & innovative industrial organic waste-to-energy Biomethanation projects and business models.

The primary mode of energy generation in India is heavily dependent on fossil fuels and non-renewable energy sources. In order to generate a more sustainable and eco-friendly form of energy, the scheme was floated by the MNRE. Generally, the industrial organic waste-to-energy biomethanation projects are capital intensive and financially sensitive to operating costs, waste availability, revenue generation, biogas yield, and its utilization milieu. Any new innovations in these projects can improve overall energy output, reduce the cost of energy generation, and may increase the initial project cost at the establishment stage. Thereby over the project’s lifetime, there is an increase in revenue and reduction in operating costs. Hence, the primary objective of the scheme is – First, to bring more developers to this kind of project and second, to provide financial aid to beneficiaries by reducing the rate of interest, so that they don’t have to undertake the full financial burden required for such demonstration projects.

Highlight of the scheme:

  1. A GIS-based inventory tool of organic waste streams was developed to estimate the availability of urban and industrial organic wastes and their energy generation potential.
  2. Central Financial Assistance (CFA) in the form of a back-ended subsidy will be provided for the installation of these projects.
  3. The entire money will be transferred to the developer’s loan account in any lending financial institution/bank only after successful commissioning of the project i.e successful operation of the project for three months.
  4. The project proposal has to be submitted through a financial institution.
  5. The time period for completion and implementation of the project is 24 months, after which the sanction and claim for CFA will not be entertained.


  1. Only claims of non-commissioned projects will be considered.
  2. Projects which have availed of loans for this project will only be considered.

How to apply:

In order to avail of the scheme, the developers have to submit project proposals to Ministry through Bank/Financial Institutions (

In case one has queries regarding the scheme can contact the Deputy Secretary/Director, Waste to Energy Division (Aseem Kumar, Director).

For further information regarding the scheme and documents needed to submit for the approval of financial assistance visit the link .

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