SRINAGAR — The Jammu and Kashmir Government has notified the Compressed Bio-Gas (CBG) Policy 2026, providing capital support of up to ₹10 crore per project and a range of incentives aimed at promoting clean energy, waste management and rural employment.
The policy was notified following its approval by the Council of Ministers chaired by Chief Minister Omar Abdullah, an official spokesperson said.
It provides a framework for converting organic waste into clean automotive fuel and organic fertiliser, while seeking to utilise waste streams such as cattle dung, apple pomace, municipal solid waste, pine needles and crop residues.
The government said the policy aims to address waste management, energy security, rural employment and sustainable agriculture through the development of CBG projects.
Under the policy, eligible projects will receive capital expenditure support of ₹0.50 crore per tonne per day (TPD), subject to a maximum of ₹10 crore per project.
Government land will be made available at a nominal lease rate of ₹1 per square metre, while projects will also receive 100 per cent exemption from stamp duty.
To improve ease of doing business, the policy provides for deemed approvals within 60 days for non-statutory permissions processed through the Single Window Portal.
Eligible clearances that are not disposed of within the stipulated period will be deemed approved, according to the policy.
CBG projects will also be eligible for 100 per cent reimbursement of State Goods and Services Tax (SGST) for the first five years of operation.
The policy provides a manpower subsidy of ₹3,000 per month for each local unskilled worker for two years, besides interest subvention of up to ₹2 crore on bank term loans.
The government will facilitate aggregation of feedstock and market linkages for bio-manure, with a target of distributing the organic fertiliser to 10,000 farmers.
The initiative envisages around 2,000 direct rural jobs by 2030, besides livelihood opportunities across the wider CBG value chain.
Valid up to 2032, the policy seeks to create an ecosystem for green investment, promote decentralised waste-to-energy projects and support rural economies.
Chief Minister Omar Abdullah congratulated Science and Technology Minister Satish Sharma and the department on the notification of the policy.
Abdullah described the initiative as an important step towards sustainable energy development and a cleaner and more resource-efficient Jammu and Kashmir.
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