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A general view of the new AstraZeneca biogas plant that will produce biogas from organic waste in Grantham, Lincolnshire, Britain, February 27, 2025. REUTERS/Chris Radburn
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CNBC TV18•02-10-2026, 18:51
J&K Unveils Compressed Bio-Gas Policy 2026 to Transform Waste into Wealth
  • •The Jammu and Kashmir government has notified the Compressed Bio-Gas (CBG) Policy 2026, establishing a framework for converting organic waste into clean fuel and high-quality bio-fertilisers.
  • •Chief Minister Omar Abdullah highlighted the policy's role in promoting clean energy, strengthening the circular economy, and turning organic waste into wealth.
  • •The policy aims to boost investment in CBG production by utilizing diverse organic waste streams like cattle dung, apple pomace, municipal solid waste, pine needles, and crop residues.
  • •Key features include capital expenditure support of Rs 0.50 crore per TPD (capped at Rs 10 crore per project), government land at nominal lease rates, and 100% stamp duty exemption.
  • •It also offers 100% SGST reimbursement for five years, a manpower subsidy, interest subvention, and aims to create around 2,000 direct rural jobs by 2030.

Key Questions Answered

The policy provides capital expenditure support of Rs 0.50 crore per TPD, capped at Rs 10 crore per project, along with government land at a nominal lease rate of Rs one per square metre and 100 per cent stamp duty exemption. It also offers 100 per cent SGST reimbursement for five years, a manpower subsidy of Rs 3,000 per month per local unskilled worker for two years, and interest subvention up to Rs 2 crore on bank term loans.

The initiative promotes investment in CBG production by facilitating the use of diverse organic waste streams, including cattle dung, apple pomace, municipal solid waste, pine needles, and crop residues.

To streamline operations, the policy provides for 60-day deemed approvals for non-statutory permissions through the Single Window Portal, meaning eligible clearances are deemed granted if not disposed of within the stipulated timeframe.