Govt. of Jharkhand


PROGRAMME>>>Bio-Gas and Bio-Gasifiers


In the area of small scale biomass gasification,   significant technology  development work     has made India a   world leader. Biomass gasifiers capable of  producing power from a few KW upto 1 MW capacity  have been successfully developed indigenously.


A large number of installations for providing power to small scale 

industries and for electrification  of a village or group of villages have been undertaken.

The Biomass Gasifier Programme has been recasted to bring about better quality and cost effectiveness.


The programmes on biomass briquetting and biomass production are being reviewed and a new programme on power production linked to energy plantations on wastelands is proposed to be developed.



A total capacity of 55.105 MW has so far been installed, mainly for stand-alone applications.

A 5 x 100 KW biomass gasifier installation on Gosaba Island in Sunderbans area of  West  Bengal  is being  successfully  run on a commercial basis to   provide electricity to the inhabitants of the Island through a local grid.

A 500 KW grid interactive biomass gasifier, linked to an energy plantation, has been commissioned under a demonstration project.


A 4X250 kW  (1.00 MW) Biomass  Gasifier based  project  has  recently  been commissioned at Khtrichera, Tripura for village electrification.


Pattern of Financial Assistance/Incentives for Setting up of Biomass Power/Cogeneration Projects


Interest Subsidy for Bagasse/Biomass Cogeneration Projects (Commercial Projects)


Bagasse Co-generation (Commercial Projects)



Pressure Configuration

Interest Subsidy

1. Projects by Cooperative/Public/ Joint Sector Sugar Mills 40 bar & above 3%
60 bar & above 4%
80 bar & above 5%
2. Projects in IPP Mode in Cooperative/Public Sector Sugar Mills 60 bar & above 2%
80 bar & above 3%
3. Projects by Private Sector Sugar Mills 60 bar & above 2%
80 bar & above 3%

Biomass Co-generation


Commercial Projects

60 bar & above 2%
80 bar & above 3%

For Bio-gases Cogeneration by Cooperative/Public Sector Sugar mills, the floor rates of interest shall not be lower than 8%, otherwise 10% for general category of projects


Interest Subsidy for Biomass Power Projects (Commercial Projects)


Biomass Power
  Schemes Pressure Configuration Interest Subsidy

Commercial Projects (Direct Combustion, including captive power)

60 bar & above 2%
80 bar & above 3%

Commercial Projects (Atmospheric Gasification including captive power)

-- 2%

MW-Scale projects with 100% Producer Gas Engines

Capital Subsidy of Rs.1.00 Cr./MW


Advanced Biomass Gasification

Capital Subsidy of Rs.1.00 Cr./MW


Biomass Power projects in North-Eastern States & Sikkim, additional interest subsidy @2% will be provided subject to floor rates of interest shall not lower than 8%, otherwise 10% for general category of projects

  • Promotional incentives for industrial co-generation projects in core industry sector for surplus power generation.

Biomass Power/Cogeneration


Item Description
Accelerated Depreciation

80% depreciation in the first year can be claimed for the following  equipment required for co-generation systems:

  • Back pressure, pass-out, controlled extraction, extraction–cum-condensing turbine for co-generation with pressure boilers

  • Vapor absorption refrigeration systems

  • Organic ranking cycle power systems

  • Low inlet pressures small steam turbines

Income Tax Holiday Five year tax holiday with 30% exemption in the next 5 years for power generation projects with PPAs
Customs Duty Duty livable for NRSE power projects of less than 50 MW capacity (under Project Import Category) is 20% ad valorum.
General Sales Tax Exemp

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