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Maharashtra’s New CBG Policy 2026: Rs 500 Crore for Waste-to-Fuel Projects

steering committee  led by the  Chief Secretary  of Maharashtra.

  • District-level coordination committees  to manage local work.

  • What Financial Support Does the Policy Offer?

    The government wants to attract investors. So it gives several incentives:

    Incentive Details
    Viability Gap Funding (VGF) Up to Rs75 lakh per tonne of CBG capacity
    Maximum VGF per project Rs15 crore
    SGST refund 2.5% refund on State Goods and Services Tax after production starts
    Priority services Electricity and water supply to CBG units

    Important condition:  If a project does not start operations within  two years , the land allocation will be cancelled. This keeps projects on track.

    How Does This Policy Link to National Programmes?

    Maharashtra’s CBG policy supports three major national initiatives:

    1. SATAT  (Sustainable Alternative Towards Affordable Transportation) – Promotes CBG as transport fuel.

    2. GOBARdhan  (Galvanising Organic Bio-Agro Resources) – Converts cattle dung and farm waste into biogas.

    3. Swachh Bharat Mission  – Improves solid waste management across India.

    Why Is This Policy Important for India’s Future?

    The policy connects waste management with renewable energy. It also helps India reach its  Net-Zero target by 2070 . Less waste goes to landfills. Less fossil fuel gets burned. Cleaner air and better farming are added benefits.


    FAQ Section

    Q1: When was the Maharashtra CBG Policy 2026 approved?
    The cabinet approved it on 22 April 2026. The policy was released on 5 May 2026.

    Q2: How much money has the government set aside for this policy?
    ?500 crore for the financial year 2026-27.

    Q3: What is the minimum waste processing requirement for one CBG project?
    At least 200 tonnes of segregated organic waste per day.

    Q4: What is Viability Gap Funding?
    It is financial support for infrastructure projects that have a funding gap. The government pays part of the cost to make the project viable.

    Q5: What happens if a project does not start in two years?
    The land allocation will be cancelled.

    Q6: Which national schemes does this policy support?
    SATAT, GOBARdhan, and Swachh Bharat Mission.

    Q7: How

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