Madhya Pradesh’s Biofuel Initiative

April 29, 2025

Recently, the Madhya Pradesh government launched the ‘Scheme for Implementation of Biofuel Projects in Madhya Pradesh’ under its Renewable Energy Policy. This initiative aims to position the state as a leader in biofuel production. It leverages the state’s agricultural strength and biomass resources to reduce fossil fuel dependency, enhance energy security, and create rural employment.

What are Biofuels?

Biofuels encompass various renewable energy sources. These include briquettes, bio-CNG from waste, biodiesel from non-edible oils, and biomass-based power. The scheme excludes first-generation bioethanol as it has a separate promotion framework.

Comprehensive Approach to Biofuel Production

The scheme covers all aspects of biofuel production. This includes feedstock cultivation, production technologies, distribution, and utilisation. A reliable supply chain for renewable resources is crucial for success.

Financial Incentives

The scheme offers financial incentives for investments over ₹10 crore. The Basic Investment Promotion Assistance provides up to ₹200 crore over seven years. Other incentives include infrastructure development funding and exemptions from electricity duties.

Ensuring Biomass Availability

The government aims to ensure a steady biomass supply. Upfront subsidies for biomass collection equipment will be provided. Training for biomass aggregators will be led by the Agriculture Department.

Integration of Waste Streams

Urban solid waste projects will utilise existing facilities. The Animal Husbandry Department will support bio-CNG plants through long-term contracts for cow dung. Mechanisms for agricultural waste collection will also be established.

Project Registration and Compliance

Biofuel developers must register projects with the NRE Department. The registration requires project and biomass assessment reports. Environmental laws must be adhered to, ensuring sustainable biomass availability.

Governance and Oversight

A high-powered committee chaired by the Chief Secretary will oversee the scheme. This committee will coordinate efforts across departments and address challenges.

Potential Impact on Energy Security

This initiative aims to meet local energy needs while supporting India’s sustainable energy goals. Successful implementation could serve as a model for other states.