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State-Specific Incentives for Biomass Sector Entrepreneurs in Uttar Pradesh
Hello Businessman,
Welcome to KIP platform where we continuously share the latest updates on biomass sector subsidies and tender opportunities across India. Today, we’re diving into a game-changing initiative from the state of Uttar Pradesh – the UP Bio Energy Policy 2022 – a crucial policy document with state-specific provisions to promote investments in the biomass sector.
Why Uttar Pradesh?
Uttar Pradesh has emerged as a strategic location for biomass businesses due to two major factors:
- More than 12 thermal power plants across the state require a consistent supply of biomass pellets and briquettes.
- Large parts of UP fall under the NCR (National Capital Region), where demand for green fuels like biomass is rapidly increasing due to environmental regulations.
If you’re planning to invest in biomass briquettes or pellets – either as a new entrant or as part of your business expansion – this policy opens many doors.
Key Highlights of UP Bio Energy Policy 2022
1. Production-Linked Subsidy
The UP government provides ₹75,000 per metric ton of annual production capacity.
This is an additional state-level incentive, over and above the central government subsidies like the Agriculture Infrastructure Fund (AIF) or Ministry of New and Renewable Energy (MNRE) schemes.
The maximum subsidy limit is up to ₹20 Crore per project.
2. Capital Subsidy on Machinery and Equipment
For procurement of feedstock handling machinery (like balers, tractors, shredders, etc.), UP Government provides an additional 30% capital subsidy, up to ₹20 lakh.
This is in addition to the Central Government’s SMAM Scheme (Sub-Mission on Agricultural Mechanisation).
3. Electricity Duty Exemption
Biomass businesses get 100% exemption from electricity duty for 10 years, significantly lowering operational costs.
4. Stamp Duty Exemption
For land purchase or lease, the policy offers 100% stamp duty exemption, helping reduce your upfront investment.
5. Land Conversion Exemption
Deemed land-use conversion is applicable – no need to convert agricultural land for biomass business operations separately.
6. Land Bank Availability through UPNEDA
UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency), the implementing authority, has set up a dedicated land bank.
Land is available at nominal lease rates for up to 30 years – starting from as low as ₹1 per acre.
If you don’t already own land, you can register on the UPNEDA portal and apply for land under this scheme.
Why It Matters
Biomass briquette and pellet production is not only a green business but also highly profitable with the right subsidy planning. With central and state-level benefits combined, you can:
Lower your capital and production costs
Earn consistent income by supplying to power plants
Maximize your ROI with subsidies and incentives
Get land at low cost and fast-track business setup
Conclusion :
If you’re planning a biomass-based business in Uttar Pradesh, now is the time. With increasing demand, strong government support, and ready-to-apply benefits, this is a golden opportunity.
Need help? Connect with our team to get:
Project Report Assistance
Central + State Subsidy Guidance
Land Support from UPNEDA
Bank Finance Coordination
Let us help you build a profitable and sustainable biomass business in Uttar Pradesh.
Reach Us
Call Us : 8683898080
E-mail Us : sales@kipfinancial.com
KIP Financial Consultancy Pvt. Ltd.
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