IBA Proposes Tax Holiday to Boost CBG Production
POWER & RENEWABLE ENERGY

IBA Proposes Tax Holiday to Boost CBG Production

The Indian Biogas Association (IBA) has urged the finance ministry to offer blanket corporate tax holidays for compressed biogas (CBG) production in the upcoming General Budget. The association believes such incentives would attract investments, drive cleaner energy generation, and support India’s renewable energy goals.

In a letter to Finance Minister Nirmala Sitharaman earlier this month, IBA proposed a complete tax waiver for CBG producers during their initial years of operation. The ministry is expected to present the budget on February 1.

In FY2024-25, approximately 100 commercial CBG plants in India contributed to a total sales value of around Rs 12 billion. With a tax waiver, the government would forgo an estimated Rs 1 billion in tax revenue, a short-term loss that IBA believes will yield long-term benefits for the renewable energy sector, encouraging private investment, and generating employment.

The tax relief could help producers offer competitive prices for CBG, further boosting its adoption in India's energy mix. IBA also highlighted the potential for utilizing agricultural residues like paddy straw and crop wastes in biogas production, reducing air pollution and aligning with India’s shift towards greener energy.

Additionally, IBA proposed extending the Haryana model, which incentivizes farmers to stop burning paddy. It recommended scaling this initiative in states with high agricultural residues such as Punjab, Haryana, Uttar Pradesh, and Bihar, before gradually rolling it out nationwide.

The association also proposed developing a framework for selling carbon credits on domestic and international platforms, offering biogas producers new revenue streams and helping India meet its climate targets. Furthermore, IBA called for simplified legislation regarding renewable energy certification and trading, along with grants for transportation of agricultural feedstock to biogas plants.

These measures, IBA said, would stimulate both economic growth and cleaner energy development across India.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Indian Biogas Association (IBA) has urged the finance ministry to offer blanket corporate tax holidays for compressed biogas (CBG) production in the upcoming General Budget. The association believes such incentives would attract investments, drive cleaner energy generation, and support India’s renewable energy goals. In a letter to Finance Minister Nirmala Sitharaman earlier this month, IBA proposed a complete tax waiver for CBG producers during their initial years of operation. The ministry is expected to present the budget on February 1. In FY2024-25, approximately 100 commercial CBG plants in India contributed to a total sales value of around Rs 12 billion. With a tax waiver, the government would forgo an estimated Rs 1 billion in tax revenue, a short-term loss that IBA believes will yield long-term benefits for the renewable energy sector, encouraging private investment, and generating employment. The tax relief could help producers offer competitive prices for CBG, further boosting its adoption in India's energy mix. IBA also highlighted the potential for utilizing agricultural residues like paddy straw and crop wastes in biogas production, reducing air pollution and aligning with India’s shift towards greener energy. Additionally, IBA proposed extending the Haryana model, which incentivizes farmers to stop burning paddy. It recommended scaling this initiative in states with high agricultural residues such as Punjab, Haryana, Uttar Pradesh, and Bihar, before gradually rolling it out nationwide. The association also proposed developing a framework for selling carbon credits on domestic and international platforms, offering biogas producers new revenue streams and helping India meet its climate targets. Furthermore, IBA called for simplified legislation regarding renewable energy certification and trading, along with grants for transportation of agricultural feedstock to biogas plants. These measures, IBA said, would stimulate both economic growth and cleaner energy development across India.

Next Story
Infrastructure Transport

Uttar Pradesh unveils infrastructure-led growth roadmap at RAHSTA

Mumbai, 9 July 2026: Uttar Pradesh’s ambitious infrastructure-led growth strategy took centre stage on Day 2 of the 16th RAHSTA Expo, where senior government officials outlined how expressways, industrial corridors and technology-driven governance are transforming the state into one of India's most attractive investment destinations.Delivering the keynote address, Srihari Pratap Shahi, IAS, Additional Chief Executive Officer, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), highlighted the state's long-term vision of integrating world-class expressways with industrial dev..

Next Story
Real Estate

NCW closes PRIME Offices Fund at Rs 40 billion

Nuvama and Cushman & Wakefield Management (NCW) has announced the final close of its flagship PRIME Offices Fund at approximately Rs 40 billion, exceeding its original target of Rs 30 billion following strong investor demand.The fund was launched to provide Indian investors with access to institutional-grade commercial office assets across key office markets in the country. According to NCW, the increase in the fund size was supported by strong investor participation and the availability of investment opportunities in India's office sector.The fund has already committed around 45 per cent ..

Next Story
Real Estate

Mayfair Housing adopts Autodesk Forma for digital project planning

Mayfair Housing has entered into a three-year strategic partnership with Autodesk to deploy Autodesk Forma, an AI-enabled cloud platform, as part of its digital transformation programme aimed at improving project planning and execution across its development and redevelopment portfolio.The platform will be integrated into the company's Building Information Modelling (BIM) workflow to support architects, planners and project teams during the early stages of design and development. Autodesk Forma combines real-world data, environmental simulations and collaborative workflows to facilitate data-d..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement