Government Incentives for biomass power projects - Subsidies, Tax Holidays, Feed in Tariffs, Soft Loans- Energy Alternatives India

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Biomass power projects can avail some incentives provided by the governments at both central and state levels. The table below summarizes the various incentives provided by the government for the biomass gasification projects.

Project Type	Capital Subsidy Special Category States (NE Region, Sikkim, J&K, HP & Uttaranchal)	Capital subsidy For other states
Biomass Power projects	25 lakh X (C MW)^0.646	20 lakh X (C MW)^0.646
Bagasse Co-generation by private sugar mills	18 lakh X (C MW)^0.646	15 lakh X (C MW)^0.646
Bagasse - Co-generation projects by cooperative/ public sector sugar mills
40 bar & above	40 lakh *	40 lakh *
60 bar & above	50 lakh *	50 lakh *
80 bar & above	60 lakh *	60 lakh *
	Per MW of surplus power **	Per MW of surplus power **
	(maximum support `8.0 crore per project)	(maximum support `8.0 crore per project)
For new sugar mills, which are yet to start production and existing sugar mills employing backpressure route/seasonal/incidental cogeneration, which exports surplus power to the grid, subsidies shall be one-half of the level mentioned above. * Power generated in a sugar mill (-) power used for captive purpose i.e. net power fed to the grid during season by a sugar mill.