Policy Updates
Accessing VGF and Capital Subsidies Exceeding ₹20+ Crore
If you are planning to set up a Bio-CBG plant in Maharashtra and searching for subsidies available in 2026, this guide provides a clear overview of the latest government support schemes, financial incentives, and implementation strategy.
On 22 April 2026, the Maharashtra Cabinet approved the Maharashtra State Compressed Biogas (CBG) Policy 2026 with an allocated Viability Gap Funding (VGF) support of ₹500 crore for FY 2026–27. Under this policy, developer companies can access combined Central (MNRE) and State subsidies exceeding ₹20 crore.
1. Maharashtra State CBG Policy Key Objectives
The policy aims to process 24,500 MT/day of municipal solid organic wastes generated across 423 urban local bodies and 20 million MT/year of agricultural crop residues. In doing so, it aims to eliminate landfill dumping and residue stubble burning, replacing fossil imports with clean transport Bio-CNG.
Standalone projects require a minimum handling capacity of 200 TPD (Tons Per Day) of segregated organic waste, whereas smaller municipalities are grouped under regional cluster aggregation models to achieve feedstock viability.
2. Consolidated Subsidy Structure
| Subsidy Component | Maximum Benefit | Nodal Authority |
|---|---|---|
| Maharashtra VGF Support | Up to ₹10 Crore | State Urban Development Department |
| MNRE CFA Assistance | Up to ₹10 Crore | National Bioenergy Programme |
| PSI-2019 Capital Support | Up to 100% of FCI | Maharashtra DIC (Zone D+ benefits) |
| Interest Subventions | Up to 5% p.a. | PSI-2019 Scheme |
| Stamp Duty & SGST Refund | 100% Exemption & Refund | State Revenue & Taxes |
3. Zone Wise Capital Incentives (PSI-2019)
Projects located in underdeveloped regions receive higher capital support:
- Zone A / B (Mumbai, Pune, Thane): 40% – 50% of Fixed Capital Investment (FCI).
- Zone C (Nashik, Aurangabad): Up to 60% of FCI.
- Zone D (Kolhapur, Solapur, Jalgaon): Up to 70% of FCI.
- Zone D+ / No Industry Districts (Vidarbha, Marathwada, Gadchiroli): Up to 100% of FCI capital reimbursement.
4. Step-by-Step Claims Process
1. GOBARdhan Registration: Registration on the central GOBARdhan portal is mandatory to link central MNRE claims.
2. Detailed Project Report (DPR): Prepare a professionally audited technical DPR indicating coordinates, layouts, mass flow, and feedstock stability.
3. SATAT LOI Acquisition: File an application to secure buyback intents from IOCL, BPCL, or HPCL.
4. MNRE & State VGF Filing: Apply under the respective central ministry and Maharashtra Urban Development portal.
5. DIC Registration: Register your capital investment intent with the District Industries Centre to lock in PSI-2019 zone benefits.
How Greliance Optimizes Subsidy Claims
Greliance Technologies LLP provides single-point execution services: technical design, CSTR layout planning, equipment procurement, SCADA integration, and statutory compliance (PESO, CTE/CTO). We manage the complex subsidy application lifecycle, mapping your site parameters to get the maximum possible cash incentives.
Claim Your Maharashtra CBG Subsidy
Unlock up to ₹20+ Crore in joint state-central subsidies. Greliance handles complete technical compliance and application filings.