Lucknow: The Uttar Pradesh cabinet has approved a bio-energy policy to attract large investments and increase farm incomes in the state. The objective of the policy is to support and promote the production of Compressed Bio-Gas, Bio-Coal, Ethanol and Bio-Diesel in the State. The cabinet also approved the MSME (Small and Medium Enterprises) policy.
According to the UP government, the bio-energy policy will help in increasing farm income by making better use of stubble, agricultural and sugar mill waste and will boost rural employment by using organic waste for energy production. Apart from this, it will also help in making better use of urban waste.
The policy has three components – Compressed Bio-Gas Plant, Bio-Diesel and Bio-Coal. The policy period for providing incentive on production will be five years. A subsidy of Rs 75 lakh per tonne (maximum Rs 20 crore) will be given on compressed biogas production. A subsidy of Rs 75,000 per tonne (maximum Rs 20 crore) will be given in case of bio-coal production. A subsidy of Rs 3 lakh per kiloliter (maximum Rs 20 crore) will be given for bio-diesel.
In all these cases the subsidy will be 15 per cent of the total expenditure. Applications will be sought at the district level or market committee level for opening a plant on land given by the government for 30 years on lease for a token amount of Re 1 in lieu of Rs. In case of people engaged in aggregation work, the government will give 30 per cent subsidy on purchase of machinery for collection, transportation and storage of materials.
Such units will be exempted from stamp duty and electricity duty. Also, in case of units with an investment of Rs 50 crore or more, the government will construct a road leading to at least 5 km for the unit. A target of 1,000 tonnes per day has been set for compressed bio-gas with an approved subsidy of Rs 750 crore, while the production target for bio-coal is 4,000 tonnes per day with a subsidy of Rs 30 crore. The daily production target would be 2,000 tonnes with a subsidy of Rs 60 crore for bio-ethanol and bio-diesel.