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
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?