Srinagar: The Jammu and Kashmir Government has notified its Compressed Bio-Gas (CBG) Policy 2026, with Chief Minister Omar Abdullah describing it as an important step towards expanding clean energy and making better use of organic waste.
The policy, approved by the Council of Ministers, provides a framework for converting waste such as cattle dung, apple pomace, municipal waste, pine needles and crop residues into compressed bio-gas and organic fertiliser.
Abdullah said the initiative would help address multiple issues at the same time, including waste management, energy security, rural employment and sustainable farming. He said the policy would also help turn organic waste into a useful resource.
To encourage investment in the sector, the policy provides capital support of ₹50 lakh per tonne per day (TPD), subject to a maximum assistance of ₹10 crore for a project. Government land will also be available on a nominal lease rate of ₹1 per square metre, along with a 100 per cent exemption from stamp duty.
The government has also included measures aimed at reducing delays in setting up projects. Non-statutory permissions can receive deemed approval within 60 days through the Single Window Portal if they are not disposed of within the prescribed period.
Eligible projects will receive 100 per cent SGST reimbursement for the first five years of operation. The policy also provides a manpower subsidy of ₹3,000 per month for each local unskilled worker for two years, along with interest subvention of up to ₹2 crore on bank term loans.
The government plans to support the collection and aggregation of raw material needed for CBG plants and facilitate market links for bio-manure. The policy has set a target of supplying bio-manure to around 10,000 farmers.
According to the government, the initiative could generate around 2,000 direct rural jobs by 2030, besides creating employment opportunities in other parts of the CBG supply chain.
The policy will remain in force until 2032. The government said it is aimed at encouraging green investment, promoting decentralised waste-to-energy projects and creating new economic opportunities in rural areas.
Abdullah congratulated Science and Technology Minister Satish Sharma and the Department of Science and Technology for notifying the policy, describing it as a step towards a cleaner and more resource-efficient Jammu and Kashmir.
