Srinagar: The Jammu and Kashmir government has notified the Compressed Bio-Gas (CBG) Policy 2026, aimed at promoting clean energy production through the conversion of organic waste into bio-gas and organic fertiliser.
The policy was approved by the Council of Ministers chaired by Chief Minister Omar Abdullah, who described it as a significant step towards strengthening the circular economy, improving waste management and promoting sustainable energy development in the Union Territory.
According to the policy, organic waste streams such as cattle dung, apple pomace, municipal solid waste, pine needles and crop residues will be utilised for CBG production. The initiative seeks to address waste management challenges while supporting energy security, rural employment and sustainable agriculture.
To encourage investment, the policy offers capital expenditure support of ₹0.50 crore per tonne per day (TPD) of capacity, subject to a maximum of ₹10 crore per project. Government land will be made available at a lease rate of ₹1 per square metre, along with a 100 per cent exemption from stamp duty.
The policy also introduces a 60-day deemed approval mechanism for non-statutory clearances through the Single Window Portal, under which eligible permissions will be treated as approved if not processed within the stipulated period.
Other incentives include reimbursement of 100 per cent State Goods and Services Tax (SGST) for the first five years of operation, a manpower subsidy of ₹3,000 per month for each local unskilled worker employed for up to two years, and interest subvention of up to ₹2 crore on bank term loans.
Officials said the government will support feedstock aggregation and facilitate market linkages for bio-manure produced by the plants. The policy aims to distribute bio-manure to 10,000 farmers and generate around 2,000 direct rural jobs by 2030, apart from indirect employment opportunities across the bio-gas value chain.
The policy will remain in force until 2032 and is intended to promote green investments and decentralised waste-to-energy projects across Jammu and Kashmir.
In a statement, Chief Minister Omar Abdullah congratulated Science and Technology Minister Satish Sharma and the Department of Science and Technology for notifying the policy, describing it as an important initiative for advancing sustainable energy and resource-efficient development in the Union Territory.
