1 The Ministry has been supporting programmes for the deployment of renewable
energy systems and devices such as biogas plants, photovoltaic systems, biomass
gasifiers, solar cookers and other solar thermal systems, etc. in rural areas of the
country. The Ministry has also been implementing remote village electrification
programme. The decentralized biogas-based power generation programme is also under
implementation since 2005-06.

3.2 Biogas production is a clean low carbon technology for efficient management and
conversion of organic wastes into clean renewable biogas and organic fertilizer source.
It has the potential for leveraging sustainable livelihood development as well as tackling
local (land, air and water) and global pollution. Biogas obtained by anaerobic digestion
of cattle dung and other loose and leafy organic matters/ wastes can be used as an
energy source for cooking, lighting and other applications like refrigeration, electricity
generation and transport applications. Since biogas plants contribute in the reduction of
greenhouse gases (GHG) hence they can be installed for availing of CDM benefits
thereby generating additional revenue for wider coverage and reducing cost of biogas
plants to government and beneficiaries. Based on the availability of cattle dung, an
estimated potential of about 12 million family type biogas plants exists in the country,
which can generate annually on an average basis about 15000 million cubic meter of
biogas. In addition, biogas plants also provide high quality organic manure with soil
nutrients which improves its fertility required for sustainable production and
3.3 National Biogas and Manure Management Programme (NBMMP) is being
implemented in the country since 1981-82 for promotion of biogas plants based on
cattle dung and other organic wastes. The NBMMP mainly caters to setting up of family
type biogas plants for meeting the cooking energy needs in rural areas of the country
alongwith making enriched bio-fertilizer availability to farmers. The availability of clean
energy mitigates drudgery of rural women, reduces pressure on forests and accentuates
social benefits. The existing institutional network

BGFP plant at Talwade, Nasik
(Maharashtra) is nearing completion

Family size biogas plant at village Laxbagan,
Lahiripur Gram panchayat, Sunderbans, West
for implementation of the programme includes State Nodal Departments/ State Nodal
Agencies, and Khadi and Village Industries Commission (KVIC) following a multi-model
and multi-agency approach. These agencies, in-turn, involve their State/ District level
network institutions, trained turn-key workers and private entrepreneurs. Panchayats
are also involved for selection of the beneficiaries and monitoring of the programme. In
order to provide training support and technical back-up, 12 Biogas Development and
Training Centers (BDTCs) have been set up in Universities, Indian Institute of
Technology (IITs) and other Technical Institutes.
3.4 The NBMMP provides for Central Financial Assistance (CFA) to turn-key job workers
linked with five years’ free maintenance warranty; toilet linked biogas plants using
biogas in engines/ gensets and refrigerators, repair of old-non functional plants; training
of users, masons, entrepreneurs/ turn-key workers and others; publicity and extension;
administrative charges; and Biogas Development and Training Centers (BDTC). Keeping
in view the limited purchasing power of beneficiaries and increasing costs of
construction of biogas plants based on the feed-back from the implementing agencies,
the Ministry has revised the pattern of CFA and other incentives for various components
of the programme with effect from November 2009. The details of the same are given in
Table 3.1. The revised Administrative Approval of the programme also includes Special
and Innovative Features’ with the objective of enhancing the reach of biogas plants,
which, in turn, would help in achieving viability of this programme. These include
introduction of competitive bidding on pilot basis for setting up biogas plants, large
scale installation of biogas plants with possible CDM benefits, taking up implementation
through Biogas-Fertilizer Companies/ Entrepreneurs (BGFCOs/ BGFEs), Banks, IREDA,
Financial Institutions, Self-Help Groups, Cooperatives and NGOs and use of five per cent
of outlay for establishing such innovative models for financing and implementation.
3.5 In accordance with the evaluation study taken by APITCO for the biogas plants
installed in the 10th Plan the success rate of installation of family type biogas plants has
been found to be the best in the State of Punjab. It was followed by the States of
Chhattisgarh and Kerala. District Kohlapur in the State of Maharashtra has got the
distinction of getting highest number of family type biogas plants installed under the
National Biogas and Manure Management Programme. The State of Maharashtra has
taken up a new initiative for installation of family type biogas plants in eco villages to
protect natural resources and to provide standard basic amenities to the rural
population. Accordingly, the physical target in the State has been raised from 8000 nos.
to 20,000 nos. for the year 2010-11 under NBMMP.
3.6 In respect of repair of old non-functional biogas plants, support will be provided up
to 5 percent of the outlay for the programme after, at least, five years of installation of
such plants. In order to improve the database and avoid duplication it is mandatory to
put up beneficiary- wise list of installation of biogas–fertilizer plants on websites of the
respective implementing agencies and organizations. The family type biogas plants
under NBMMP forms the part of Twenty Point Programme 2006 (TPP 2006) under item
No. 59.
3.7 With the installation of 4.31 million family type biogas plants by January 2011,
about 35% of the estimated potential has been realized so far. Cumulative
achievements till March, 2010 and target and achievements during 2010-11 under the
Programme are given in Table 3.2. Installation of 1,19,914 family type biogas plants
during the year 2009-10 is likely to result in the estimated annual saving of about 3.05
lakh tonnes of fuel wood equivalent and production of about 115.7 lakh kg of urea
equivalent or 21.47 lakh tonnes of organic manure per year. In addition, the rural
families would benefit in terms of reducing drudgery of women involved in collecting fuel
wood from long distances and minimizing health hazards during cooking in smoky
kitchens. It is estimated that the construction of 1,19,914 biogas plants would have
generated about 3.35

million person-days of employment for skilled and unskilled workers in rural areas
during the year. Under this programme, during the year 2010-11 over one lakh nos. of
such plants are likely to be constructed. One of the major reasons for the shortfall
against potential is the inability of some large States like Uttar Pradesh and Bihar to
take up this programme in a big way.
3.8 In addition, the Ministry has started a scheme ‘Biogas based Distributed/ Grid
Power Generation Programme’ (BGPG programme) from 2005-06 with a view to
promote biogas based power generation, especially in the small capacity range (from 3
KW to 250 KW), based on the availability of large quantity of animal wastes and wastes
from forestry, rural based industries (agro/ food processing), kitchen wastes, etc. The
details of Year- wise Biogas Based Distributed/ Grid Power Generation Projects
Sanctioned during 2005-06 to 2010-11 are given in Table 3.3.
Demonstration of Integrated Technology package on Biogas-Fertilizer Plants
(BGFP) for Generation Purification/Enrichment, Bottling and Piped distribution
of biogas as technology demonstration under RDD&D policy
3.9 Under the provisions for technology demonstration of RDD&D Policy of MNRE, the
Ministry took up a new initiative for bottling of biogas to demonstrate an Integrated
Technology-package in entrepreneurial mode on medium size mixed feed biogas-
fertilizer plants (BGFP) for generation, purification/enrichment, bottling and piped
distribution of

Medium size Biogas plant based power generation
plant at village Thamna, Distt. Anand, Gujarat
biogas. Installation of such plants aims at meeting stationary and motive power,
cooling, refrigeration and electricity needs in addition to cooking and heating
requirements. There could be a huge potential of installation of medium size biogas-
fertilizer plants in various villages of the country. Under the demonstration phase, the
Ministry is providing a central financial assistance of 50 percent of the cost (excluding
cost of land) for a limited number of such projects for implementation following an
entrepreneurial mode on BOO & re-imbursement basis.

BGFP project at Abohar, Ferozepur (Punjab) is under installation

3.10 Under the programme a total of sixteen number of BGFP projects have been
sanctioned including eight BGFP projects with aggregate capacity of 6500 cum/day
sanctioned in the States of Rajasthan, Haryana, Karnataka, Maharashtra and Punjab for
their implementation during the current year. The details of sanctioned projects during
2010-11 are given in Table 3.4.
3.11 The BGFP project sanctioned to Ashoka Biogreen at villiage- Talwade Distt. Nashik
(Maharashtra) is near completion. The biogas generated from the plant has been
purified and a purity of 98.4% methane has been achieved through a test conducted by
Shriram Institute for Industrial Research, Delhi.
3.12 During the year, various meetings have been organized and committees set up for
streamlining necessary approvals from Petroleum and Explosives Safety Organization
(PESO), DIPP, Ministry of Commerce and Industry, Bureau of Indian Standard (BIS),
Central Pollution Control Board (CPCB) and Ministry of Environment and Forests.
3.13 During the year the Ministry also invited expression of interest (EOI) for higher
capacity biogas generation, purification and bottling projects on different type of
biomass wastes available at different locations including sugar mills, agro-processing
plants, poultry units, etc. These projects may have biogas generation

capacity of above 1000 m
. The capacity of BGFP could be 1,100 m
to 20,000 m
biogas/ day and above thereof depending on the availability of suitable biomass feed-
materials and cattle-dung. The MNRE support of 30-40% can be made available for
taking up a limited number of such technology demonstration projects under RDD&D
policy of the Ministry.

3.14 The Remote Village Electrification Programme is being implemented by the
Ministry to provide lighting/electricity using renewable energy, in those remote
unelectrified villages and hamlets, which are not going to be covered under Rajiv Gandhi
Grameen Vidyutikaran Yojana (RGGVY) for grid electrification. The Programme is being
implemented in complementary mode to RGGVY. It is also worthwhile to mention that
the National Rural Electrification Policy, 2006 clarified that provision of renewable
energy based systems in unelectrified villages and hamlets should not jeopardize the
rights of such villagers to grid connectivity. The Programme has continued during the
11th Plan and a budget allocation of `80 crore was made for the year.
3.15 The Programme is implemented in states by state notified implementing agencies.
The Ministry provides Central Financial Assistance of upto 90% of the costs of
installation of various renewable energy devices/systems. In addition, many other
promotional supports and a substantial

SPV Home Lighting System in a hut in Jaisalmer Distt. of Rajasthan
amount of service charge are provided to the state implementing agencies.
3.16 Although a variety of renewable energy technologies are possible for electrification
of remote villages including small hydro, biomass and solar energy, yet, solar PV
lighting remains the most preferred. The decision to use a particular technology is taken
by the state implementing agencies after examination of the technical feasibility and
resource availability.
3.17 The cumulative sanctions under the Programme since its inception reached around
11,000. The state-wise details are given in Table 3.5. A target for coverage of 10,000
villages and hamlets has been set for the 11
Plan, of which 4589 villages and hamlets
have been taken up by 15.01.2011. The main States where the Programme has greater
relevance, due to their inaccessible areas are Jammu and Kashmir, Madhya Pradesh,
Orissa, Chhattisgarh, Jharkhand and the North Eastern states. Special priority is being
accorded to villages affected by internal disturbances in line with the policy of the
3.18 In addition several steps were initiated during the year to accelerate
implementation of the Programme. A Coordination Committee has been constituted
under the chairmanship of Secretary, MNRE for the Programme in accordance with the
mechanism approved by the Cabinet. The other members of the Committee include
representatives of Ministry of Power, Rural Electrification Corporation, Ministry of
Panchayati Raj and Planning Commission. The Committee approves the proposals for
financial support under the programme.
3.19 A number of review meetings have been held during the year with the state
implementing agencies to expedite the implementation of already sanctioned projects
and also to impress upon them the need to identify early the villages and hamlets
excluded from RGGVY for coverage under the programme. Such meetings have been
held at the level of Secretary with the North Eastern states, Jharkhand, Orissa, Uttar
Pradesh, Jammu & Kashmir, Madhya Pradesh, etc. Reviews through video conferencing
mode have also been started.
3.20 National Council of Applied Economic Research, New Delhi has carried out an

133 villages in Assam, 114 villages in Chhattisgarh, 19 projects in Madhya Pradesh, 3 in
Maharashtra, 24 in Rajasthan, 4 in Karnataka, 53 in Uttarakhand, 5 in Jharkhand and 168 in UP
and 145 hamlets in Tripura and 51 hamlets in Tamil Nadu have been cancelled by the State
Governments as they were taken up for grid electrification.
SPV street light installed in a remote village in
Kokrajhar district of Assam
study in three states viz Madhya Pradesh, Orissa and Chhattisgarh during the current
year to assess the implementation of the RVE Programme. The study has found that
provision of lighting in the remote villages has improved the life of the villagers. Around
5200 households in 186 villages of the three states were covered by the survey. The
functionality of the Solar lighting systems was found to be between 68 to 86%.
3.21 In continuation of its efforts for involvement of different stakeholders, such as the
concerned officials of the district and the SEB, the beneficiaries,

the local elected representatives, NGOs, etc., the Ministry sponsored a number of
training and awareness programmes in different states.

3.22 Limited number of Test Projects on Village Energy Security was taken up in the
Plan to meet total energy requirements of villages in an efficient, reliable and cost-
effective manner. These projects were undertaken by the Gram Panchayats and
facilitated by SNAs, District Rural Development Agencies (DRDAs), Forest Departments
and NGOs.
3.23 61 VESP test projects have so far been commissioned, of which six test projects
have been commissioned and eight test projects have been completed during the year
2010-11 (till 31
January, 2011). Details of the projects are given in Table 3.6.
3.24 During Mid-Term Appraisal of 11
Plan in September, 2009, “it was decided to
concentrate on consolidating the projects already taken up for implementation and take
up new villages only under the RVE Programme. During the remaining period of 11
Plan, consolidation of VESP activities will be undertaken. As such, new VESP test
projects are not being sanctioned.