Bio-Energy Policy

Giving an impetus to its commitment to increasing biofuel use, the Uttar Pradesh government has decided to implement a state Bio-Energy policy in 2022 that will help in curtailing the use of fossil fuels and help in increasing the income of farmers. The government also adopted a resolution to formulate a new MSME promotion policy.
With the new policy, investment in rural areas will increase, and people will be linked with employment on a large scale. One bio-plant will be set up in each tehsil of the State while developing the waste supply chain.
The state government was determined to solve the problem of burning agricultural waste (perali) in the fields. To implement this policy, the State government will spend Rs.1040cr. On the additional grant on CBG plants, Bio-coal plants, Bio-ethanol, and Bio-diesel for the collection of Biomass. The government claims it will also lead to an investment of Rs. 5500cr. in the state.
Agricultural waste, agricultural produce market waste, livestock waste, sugar mill waste, urban waste, and other organic waste available in abundance will be used in generating biofuel.
The new policy has been formed to finalize the possibilities of setting up bio-energy enterprises in the state by removing the shortcomings of the earlier policies.
Under the Bio-Energy Enterprises Promotion Programme-2018, 100% exemption was given in stamp duty on land purchase to bio-energy enterprises, and 100% reimbursement of SGST for ten years from the date of commencement of production was given.
The term of the new policy will be five years. Incentives will be given on production land for setting up of enterprises/plants (compressed biogas, bio-coal, bio-ethanol, and bio-diesel), and collection and storage of feedstock will be given on token lease rent of Rs. 1 per acre per annum for a lodge period of 30 years. Under this policy, a subsidy will be given on compressed biogas production at the rate of Rs 75 lakh per ton to a maximum of Rs 20 crore. It will be Rs 75,000 per ton of bio-coal production to a maximum of Rs 20 crore and Rs 3 lakh per kilolitre on biodiesel production.

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