Pune: The Maharashtra government’s newly announced biogas policy is expected to boost waste management and green energy production across the state, while also creating new income opportunities for the sugar industry through energy generation from industrial waste.
Under the policy, the government has encouraged the production of compressed biogas using municipal organic waste, agricultural residue, animal waste and by-products generated in sugar factories. Materials such as press mud, spent wash, bagasse and sugarcane residue from mills will now be treated as energy resources instead of waste, Maharashtra Times reported.
The policy has fixed a minimum requirement of 20 tonnes of waste per day for setting up a biogas project. This has opened the possibility for smaller sugar mills to jointly establish projects.
To ensure regular supply of raw material, the government has encouraged long-term agreements between Agricultural Produce Market Committees (APMCs), farmer producer organisations and sugar factories.
Biogas projects have been granted the status of priority infrastructure projects. The government has also announced a single-window clearance system for electricity, water supply and all required approvals. Bio-fertiliser produced from these projects will receive support for marketing through the agriculture department.
The policy also provides financial security to sugar mills as oil companies will guarantee gas purchases under the central government’s scheme. This is expected to strengthen the financial position of mills investing in biogas production.
The government has approved implementation of the policy under the public-private partnership model and has formed separate committees at both state and district levels for monitoring and execution.
While the policy is mainly aimed at improving urban solid waste management, the inclusion of the sugar industry is expected to help mills in pollution control, green energy production and generation of additional revenue.
The policy also includes financial support for project developers. The state has made a provision of Rs 500 crore for the financial year 2026-27. Subsidy of up to Rs 75 lakh per tonne of project capacity and a maximum of Rs 15 crore per project will be provided.
In addition, projects will receive a refund of 2.5 per cent of the Goods and Services Tax (GST) after production begins. Land will also be made available according to project capacity, at the rate of around one acre per tonne capacity, with a minimum allocation of one acre and a maximum of 20 acres. The lease rent has been fixed at 0.7 per cent of the ready reckoner rate.
However, the government has stated that if a project is not started within two years of land allotment, the allocation will be cancelled.
Dilip Patil, co-chairman of the Indian Federation of Green Energy Sugar Bioenergy, said the policy is important for both the agriculture and sugar sectors. He said the financial incentives, easier approval process and institutional support would help speed up investment and implementation of projects in sugar factories. He also urged mills to immediately assess the availability of raw materials and prepare project proposals for application under the scheme.
