J&K Govt notifies Compressed Bio-Gas Policy to promote clean energy

at 5:03 pm
CM Omar Abdullah

Srinagar, Oct 2 (NVI): The Jammu and Kashmir government has notified its Compressed Bio-Gas (CBG) Policy 2026, offering capital support, subsidised land, tax incentives and faster approvals to promote clean energy and waste-to-energy projects in the Union Territory.

Chief Minister Omar Abdullah described the policy as a major step towards promoting clean energy, strengthening the circular economy and converting organic waste into wealth.

The policy was notified following its approval by the Council of Ministers chaired by Abdullah and provides a framework for converting organic waste into compressed bio-gas for use as automotive fuel and organic fertiliser.

It seeks to encourage the use of various organic waste streams, including cattle dung, apple pomace, municipal solid waste, pine needles and crop residues, while addressing waste management, energy security, rural employment and sustainable agriculture.

Under the policy, CBG projects will be eligible for capital expenditure support of Rs 0.50 crore per tonne per day (TPD), subject to a maximum assistance of Rs 10 crore per project.

Government land will be made available at a nominal lease rate of Rs 1 per square metre, along with 100 per cent exemption from stamp duty, officials said.

To facilitate ease of doing business, the policy provides for deemed approval within 60 days for non-statutory permissions through the Single Window Portal if applications are not disposed of within the stipulated timeframe.

Eligible projects will also receive 100 per cent reimbursement of SGST for the first five years of operation, a manpower subsidy of Rs 3,000 per month for each local unskilled worker for two years and interest subvention of up to Rs 2 crore on bank term loans.

The government will facilitate feedstock aggregation and market linkages for bio-manure, with the policy targeting its distribution among 10,000 farmers.

The initiative is expected to create around 2,000 direct rural jobs by 2030, besides generating livelihood opportunities across the CBG value chain.

The policy will remain in force until 2032 and aims to create an ecosystem for green investment, promote decentralised waste-to-energy solutions and strengthen rural economies.

Abdullah congratulated Science and Technology Minister Satish Sharma and the Department of Science and Technology for notifying the policy, describing it as an important initiative towards sustainable energy development and a cleaner and more resource-efficient Jammu and Kashmir.—(NVI)