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. 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code