The Uttar Pradesh Cabinet approved the bio-energy strategy in an effort to draw substantial investments and boost the state’s agricultural income.The goal of the policy is to encourage and assist the state’s production of compressed biogas, biocoal, ethanol, and biodiesel.
The MSME (small and medium businesses) strategy, which aims to open and support such units in all districts, was also given the green light by the Cabinet.
Compressed biogas plants, biodiesel, and biocoal make up the three parts of the policy. To offer manufacturing incentives, the policy will be in place for five years. Production of compressed biogas will get a maximum of Rs 20 crore in subsidies, or Rs 75 lakh per tonne. A maximum of Rs. 20 crore in subsidies will be offered for the manufacture of bio-coal, at a rate of Rs. 75,000 per tonne.A subsidy of Rs. 3 lakh per kilolitre (up to Rs. 20 crore) will be given for biodiesel.
In each of these situations, the subsidy would equal 15% of the overall expense. Applications will be accepted at the district level for the opening of factories on government-provided land for a 30 year lease in exchange for a nominal fee of Rs 1. Additionally, a committee will be established for the collection of bio or raw materials from farmers, producer organisations, or mandi samitis, etc.
The government will offer a 30% subsidy to individuals performing aggregation work for the acquisition of equipment for material collection, transportation, and storage.
