Indian Biogas Association (IBA) bats for subsidy for revival of 5 million defunct biogas plants

In a major push for clean energy in rural India, the Indian Biogas Association (IBA) has proposed a nationwide scheme to revive five million defunct biogas plants. The plan involves a one-time government subsidy of Rs 10,000 per unit, with an estimated total outlay of Rs 5,000 crore. The IBA asserts this amount can be recovered within two years through reduced LPG subsidies and fuel imports.

IBA Chairman Gaurav Kedia emphasized that most of these plants are structurally sound but remain idle due to lack of maintenance and funding. He said that these systems don’t need rebuilding—just revival and a campaign like Swachh Bharat could bring them back to life.

The IBA chairman believes that reactivating the biogas units would reduce dependence on subsidized LPG under the Ujjwala Yojana, potentially saving the government Rs 3,618 crore annually. Moreover, restored biogas units can offer a clean, reliable source of cooking gas for rural households, generate rural employment through maintenance needs, and reduce indoor air pollution.

The IBA suggests that integrating the initiative with existing government schemes like GOBARdhan and SATAT for effective rollout. Regular maintenance, including quarterly inspections, is also recommended to ensure long-term efficiency and user satisfaction.

Beyond energy access, the proposal highlights broader sustainability benefits. Each small biogas unit can cut six tonnes of CO₂ emissions and eliminate the need for five tonnes of firewood annually. This would aid in curbing deforestation, managing solid waste, and producing organic manure.

Gaurav Kedia concluded by calling this a unique opportunity for India to lead the world in decentralized clean energy solutions. “With focused investment, biogas can transform rural India and set a global example.”

The IBA has been on the forefront for the development of the biogas sector through policy advocacy and industry engagement. Recently, the IBA petitioned with the government for mandatory manure (FOM) off-take to raise the revenue of biogas plant owners. Similarly, last year it also advocated for a fixed procurement rate of Rs 90 per kg for biogas by oil and gas marketing companies in the country.