UP Bio-Energy Policy 2022: Complete Guide
What Is the Policy?
The Uttar Pradesh Bio-Energy Policy, 2022 covers Compressed Bio-Gas (CBG), bio-CNG, biomass pellets and briquettes, biodiesel, ethanol-adjacent projects, and waste-to-energy. It is administered by UPNEDA, with the Additional Sources of Energy Department.
Key Incentives
| What | Details |
|---|---|
| Capital subsidy | Per unit of installed capacity โ capacity-linked rather than purely investment-linked, a distinguishing feature |
| Land facilitation | On government land |
| Stamp & electricity duty | Exemption |
| Transport/logistics | Support |
| Feedstock support | Facilitation for parali (paddy straw) and agri-residue aggregation, and press mud/cattle dung linkages for CBG |
Eligibility
- Project developers setting up production plants above the notified minimum capacity
What Is the Critical Diligence Item?
How Does This Converge With Central Schemes?
With SATAT (offtake assurance from oil marketing companies for CBG), GOBARdhan, and MNRE waste-to-energy programmes.
Where Does This Make the Most Sense?
In urbanised districts, municipal solid waste-to-energy and industrial biomass are the realistic segments, since agricultural feedstock aggregation is harder to secure there.
How to Apply
- Secure your feedstock supply chain (agri-residue, press mud, cattle dung, or municipal waste, depending on project type) before finalising capacity
- Line up an offtake agreement โ for CBG, this typically means an oil marketing company under SATAT
- Approach UPNEDA / the Additional Sources of Energy Department as the nodal point
Frequently Asked Questions
Why do bio-energy projects fail even when they get the capital subsidy?
The critical diligence item is feedstock security and the offtake agreement, not the capital subsidy itself โ projects typically fail on feedstock, not on capital. Secure your supply chain and offtake first.
Is the subsidy based on my investment amount or my plant's capacity?
It's capacity-linked โ a subsidy per unit of installed capacity โ which is a distinguishing feature compared to purely investment-linked subsidies in most other UP sector policies.
Need help with your UP Bio-Energy Policy application?
ClaimDesk (A NorthStar Advisors brand, Noida) helps you assess feedstock security, work out applicable incentives, and prepare your application for UPNEDA. The first conversation is completely free.
MSMEUP.com is independent information & tools โ free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional โ MSMEUP's guides and tools work the same with or without it.
Official portal: upneda.org.in Administered by: Additional Sources of Energy Dept. / UPNEDA Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.