State-Wise CBG Subsidy Guide: What Each State Adds on Top of the Central Scheme

Our earlier piece on the GOBARdhan GR covered the national framework in detail: central Capital Assistance of ₹1.25 crore per TPD for plant establishment, plus up to ₹0.75 crore per TPD for feedstock aggregation machinery, capped at ₹30 crore per project — alongside an administered CBG price and offtake obligations on City Gas Distribution entities. That's the floor every CBG project in India stands on, regardless of location. What that piece doesn't cover is that several states have layered their own capital subsidies, land concessions and tax breaks on top of this central floor — and the difference between operating in one state versus another can move a project's economics by crores.

This is the question we get most often from clients evaluating a site: “does my state add anything to the central scheme?” The honest answer varies a lot by state, and some of it is still catching up to the headlines. Here's what we found when we went state by state.

A Note Before You Read the Numbers

State CBG and bioenergy policies are being notified, revised and, in some cases, only proposed at a fast pace right now — several of the schemes below were announced or updated within the last year. Where a scheme is still at the “proposed” or “forthcoming” stage rather than formally notified, we've said so. And where a state policy doesn't explicitly clarify whether its support stacks on top of the central GOBARdhan capital assistance, we haven't assumed it does — that's a question to raise with the state nodal agency before it goes into a financial model, the same caution we'd apply to the central scheme's own headline figures.

One more central-scheme detail worth carrying into every state comparison below: the central Capital Assistance ceiling is lower for brownfield projects (50% of the greenfield rate, on incremental capacity only) and comes with a ₹30 crore per-project cap and a three-tranche, performance-linked disbursement schedule — not a lump sum on approval. State schemes have their own separate conditions on top of that, covered state by state below.

States With Dedicated CBG Capital Subsidy Schemes

Interesting to note: Uttar Pradesh's ₹75 lakh/tonne structure was in place under its 2022 Bio-energy Enterprises Promotion Programme well before the central scheme adopted a similar per-TPD formula in August 2026 — UP was, in effect, ahead of the national scheme on this specific mechanism.

States With Adjacent, Non-CBG-Specific Support

Not every state incentive that touches biogas is a CBG plant subsidy, and it's worth being precise about the difference:

• Haryana offers a 50% VAT rebate to industrial units switching from diesel generators to CNG or piped natural gas — a genuine incentive, but aimed at industrial gas consumption generally, not at CBG plant developers specifically.
• Telangana runs a capital support scheme for decentralized biogas power and thermal projects in the 3–250 kW range, aimed at village-level organizations and individual entrepreneurs — a different scale and purpose from a commercial CBG plant.
• Andhra Pradesh has sanctioned ₹60 crore to build and upgrade five municipal CBG plants (25 TPD each) through its Swachh Andhra Corporation — a state-funded municipal project model, not an open capital subsidy scheme a private developer applies to.

States Currently Working Off the Central Scheme Alone

Based on what's been formally notified as of this writing, Karnataka, Tamil Nadu and Gujarat don't yet have a dedicated state-level CBG capital subsidy layered on top of the national GOBARdhan framework. That doesn't mean there's no state involvement — nodal agencies like the Karnataka State Bioenergy Development Board play a coordination and facilitation role — but a developer in these states should currently plan around the central scheme's Capital Assistance (₹1.25 crore/TPD, plus up to ₹0.75 crore/TPD for machinery, capped at ₹30 crore/project) as the primary capital support available, rather than expecting an additional state top-up. This is worth rechecking periodically, since several of the schemes above (Chhattisgarh, Maharashtra) are recent enough that other states may follow with their own notifications.

What This Means for Project Planning

Two practical takeaways follow from this state-by-state picture. First, location decisions for a CBG plant shouldn't be made on feedstock and offtake alone — the state's land, duty and capital-subsidy regime can swing project IRR by a meaningful margin, and that's before accounting for what the central scheme already provides. Second, several of the state schemes above are recent, partially notified, or explicitly “forthcoming” — which means the responsible approach is the same one we'd apply to the central scheme itself: build the base financial model on what's confirmed and formally notified, and treat anything still in a proposed or draft stage as upside to validate closer to financial close, not as a line item to bank on today.

Plan a Multi-State Comparison Before You Commit

Feedstock, land cost, and now state-level subsidy design all vary enough across India that the same plant capacity can look very different on paper depending on where it's sited. Bharat Bioenergy works with clients across Maharashtra, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh and Punjab, and can help lay the central and state support your specific location offers against realistic feedstock and offtake assumptions before you finalize a site. Talk to our team about your location and capacity.

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