Increase In MSME Financing Right Step To Boost Biogas Industry
POWER & RENEWABLE ENERGY

Increase In MSME Financing Right Step To Boost Biogas Industry

Indian Biogas Association (IBA) said the proposed increase in MSME financing in the General Budget 2025 is a right step to boost biogas industry. With a strong push for manufacturing, green energy, and digital transformation, this Budget sets the stage for Aatmanirbhar and Viksit Bharat, an IBA statement said. 

From the standpoint of the fledgling biogas/CBG (compressed biogas) industry, the announced increase to the MSME Credit Guarantee Scheme will significantly benefit the biogas industry, which often faces challenge in securing credit with reasonable terms, it noted. 

By expanding the credit guarantee cover from Rs 50-100 million, the scheme ensures easier access to collateral-free loans, thus reducing financial barriers for the CBG developers, it pointed out. Additionally, the revised MSME classification criteria allow for almost 2-2.5 times higher investment and turnover limits as compared to earlier regime. 

The amendment ensures that now even the larger-capacity CBG projects are eligible for these incentives, it noted. 

While the recent Budget takes adequate steps in supporting the MSME sector, inclusion of specific policy measures for the CBG industry would have made it even more conducive for the sector, it suggested. 

So, to foster the growth of the biogas and CBG producers, the IBA has already requested the Indian government for development of a framework that allows the biogas plant promoters to sell carbon credits in both international and domestic platforms, enhancing financial viability and aiding climate targets, it stated. 

Indian Biogas Association (IBA) said the proposed increase in MSME financing in the General Budget 2025 is a right step to boost biogas industry. With a strong push for manufacturing, green energy, and digital transformation, this Budget sets the stage for Aatmanirbhar and Viksit Bharat, an IBA statement said. From the standpoint of the fledgling biogas/CBG (compressed biogas) industry, the announced increase to the MSME Credit Guarantee Scheme will significantly benefit the biogas industry, which often faces challenge in securing credit with reasonable terms, it noted. By expanding the credit guarantee cover from Rs 50-100 million, the scheme ensures easier access to collateral-free loans, thus reducing financial barriers for the CBG developers, it pointed out. Additionally, the revised MSME classification criteria allow for almost 2-2.5 times higher investment and turnover limits as compared to earlier regime. The amendment ensures that now even the larger-capacity CBG projects are eligible for these incentives, it noted. While the recent Budget takes adequate steps in supporting the MSME sector, inclusion of specific policy measures for the CBG industry would have made it even more conducive for the sector, it suggested. So, to foster the growth of the biogas and CBG producers, the IBA has already requested the Indian government for development of a framework that allows the biogas plant promoters to sell carbon credits in both international and domestic platforms, enhancing financial viability and aiding climate targets, it stated. 

Next Story
Infrastructure Urban

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Next Story
Infrastructure Urban

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Next Story
Infrastructure Urban

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement