SRINAGAR: The Jammu and Kashmir Government has notified its Compressed Bio-Gas (CBG) Policy 2026, offering capital expenditure support of up to Rs 10 crore per project and a range of incentives aimed at promoting investment in waste-to-energy projects across the Union Territory.
The policy, approved by the Council of Ministers chaired by Chief Minister Omar Abdullah, provides a framework for converting organic waste into compressed bio-gas for automotive fuel and bio-manure, the government said.
Under the policy, eligible CBG projects will receive capital expenditure support of Rs 0.50 crore per tonne per day (TPD), subject to a maximum assistance of Rs 10 crore per project.
Government land will be offered at a nominal lease rate of Rs 1 per square metre, with projects receiving 100 per cent exemption from stamp duty.
The policy covers organic feedstock including cattle dung, apple pomace, municipal solid waste, pine needles and crop residues. The government said the initiative is intended to address waste management while supporting energy security, rural employment and sustainable agricultural practices.
For ease of doing business, non-statutory permissions processed through the Single Window Portal will be subject to a 60-day deemed-approval mechanism. Eligible approvals will be deemed granted if they are not disposed of within the stipulated period.
The policy also provides for 100 per cent reimbursement of State Goods and Services Tax (SGST) for the first five years of operation. A manpower subsidy of Rs 3,000 per month per local unskilled worker will be available for two years, while interest subvention of up to Rs 2 crore has been provided on bank term loans.
The government will facilitate aggregation of feedstock and market linkages for bio-manure. The policy targets distribution of bio-manure among 10,000 farmers and envisages around 2,000 direct rural jobs by 2030, besides livelihood opportunities across the CBG value chain.
The policy will remain in force until 2032 and seeks to establish an ecosystem for green investment and decentralised waste-to-energy projects, according to the government.
Chief Minister Omar Abdullah described the policy as a major step towards clean energy, a circular economy and conversion of organic waste into wealth.
He congratulated Minister for Science & Technology Satish Sharma and the Department of Science & Technology on notifying the policy, describing it as an initiative towards sustainable energy development and a cleaner, more resource-efficient Jammu and Kashmir.
