+
Madhya Pradesh Unveils Biofuel Push with Major Incentives
ECONOMY & POLICY

Madhya Pradesh Unveils Biofuel Push with Major Incentives

The Madhya Pradesh government has launched a new biofuel policy under its Renewable Energy Policy 2025, aiming to set up at least one biofuel plant in every development block. The initiative offers a wide range of fiscal and regulatory incentives to attract private investment, reduce rural waste, and boost farmer income.

The focus will be on advanced biofuels like compressed biogas (CBG), biodiesel, and bio-coal, excluding first-generation ethanol. The policy is backed by capital subsidies of up to Rs 2 billion under the Basic Investment Promotion Assistance (BIPA) scheme, disbursed over seven years. An extra Rs 50 million is allocated for critical infrastructure, and projects using zero liquid discharge (ZLD) systems can claim up to Rs 100 million more.

Only one plant will be permitted per block, with investors selected by a District Committee headed by the local Collector.

To further encourage participation, government revenue land will be offered at 50 per cent of the circle rate, while forest and agricultural land for biomass use will be available at just 10 per cent of the annual guideline rate. Land requirements will vary by plant size — for instance, a 10-tonne-per-day CBG unit will need 10 acres. Lease terms will span 30 years, with a renewal option.

The policy also waives electricity duty and energy development cess for 10 years. Private land purchases will get a 50 per cent stamp duty reimbursement. Projects supplying electricity to third parties can seek exemptions from cross-subsidy and additional surcharges, subject to regulatory approval.

The Madhya Pradesh government has launched a new biofuel policy under its Renewable Energy Policy 2025, aiming to set up at least one biofuel plant in every development block. The initiative offers a wide range of fiscal and regulatory incentives to attract private investment, reduce rural waste, and boost farmer income. The focus will be on advanced biofuels like compressed biogas (CBG), biodiesel, and bio-coal, excluding first-generation ethanol. The policy is backed by capital subsidies of up to Rs 2 billion under the Basic Investment Promotion Assistance (BIPA) scheme, disbursed over seven years. An extra Rs 50 million is allocated for critical infrastructure, and projects using zero liquid discharge (ZLD) systems can claim up to Rs 100 million more. Only one plant will be permitted per block, with investors selected by a District Committee headed by the local Collector. To further encourage participation, government revenue land will be offered at 50 per cent of the circle rate, while forest and agricultural land for biomass use will be available at just 10 per cent of the annual guideline rate. Land requirements will vary by plant size — for instance, a 10-tonne-per-day CBG unit will need 10 acres. Lease terms will span 30 years, with a renewal option. The policy also waives electricity duty and energy development cess for 10 years. Private land purchases will get a 50 per cent stamp duty reimbursement. Projects supplying electricity to third parties can seek exemptions from cross-subsidy and additional surcharges, subject to regulatory approval.

Next Story
Infrastructure Urban

Companies in GIFT City IFSC Cross 400 Mark

As of July 31, 2025, a total of 409 companies are operating in the Gujarat International Finance Tec City – International Financial Services Centre (GIFT IFSC), Finance Minister Nirmala Sitharaman informed Parliament.In a written reply in the Lok Sabha, she highlighted that the number of firms in GIFT IFSC has grown nearly fivefold in less than five years — from 82 on October 1, 2020, to 409 by July 2025.The centre now hosts a wide range of entities, including those in banking, asset management, and allied services, alongside other financial segments.To support GIFT IFSC’s growth, the go..

Next Story
Infrastructure Urban

GMDA to Prepare Fresh DPR for Naurangpur Sewage Treatment Plant

The Gurugram Metropolitan Development Authority (GMDA) will prepare a fresh detailed project report (DPR) for the proposed 40 million litres per day (MLD) sewage treatment plant (STP) at Naurangpur. The move comes after it was found that a high-tension power line and a 24-metre-wide road pass through the site allocated for the project, requiring a revised plan.According to officials, the original 3.65-acre land parcel transferred from the Municipal Corporation of Manesar (MCM) was reduced to 2.89 acres following the road development. The presence of the power line further divided the land into..

Next Story
Infrastructure Transport

PM Inaugurates Bihar Highway and New Ganga Bridge

Prime Minister Narendra Modi will inaugurate a key highway project on Friday, connecting Aunta (Mokama) and Simaria (Begusarai), featuring a newly built 1.865-km bridge across the Ganga.The project establishes direct road connectivity between Mokama in Patna district and Begusarai. The bridge has been constructed parallel to the old two-lane rail-cum-road Rajendra Setu, which is currently under repair and restricts heavy vehicle movement.The new bridge will allow heavy vehicles to avoid a detour of nearly 100 km while travelling between north Bihar districts such as Begusarai, Supaul, Madhuban..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?