(MENAFN- KNN India)
New Delhi, Jan 13 (KNN) The Indian Biogas Association (IBA) has appealed to Finance Minister Nirmala Sitharaman for comprehensive corporate tax exemptions for compressed biogas (CBG) producers in the upcoming General Budget, aiming to stimulate investment in renewable energy.
The proposal, submitted ahead of the February 1 budget presentation, emphasises the strategic importance of tax incentives in scaling up CBG production.
According to IBA data, approximately 100 operational commercial CBG plants in India generated sales of roughly Rs 1,200 crore in FY2024-25. The proposed tax waiver would result in an estimated revenue loss of Rs 100 crore for the government.
However, the industry body argues that this short-term fiscal impact would be offset by long-term benefits, including increased private investment, job creation, and progress toward national renewable energy targets.
The association emphasises that tax relief would enable CBG producers to offer more competitive prices, thereby accelerating the adoption of biogas in India's energy mix.
Additionally, the initiative would promote the utilisation of agricultural residues in biogas production, offering an alternative to crop burning and addressing pollution concerns.
The IBA points to Haryana's existing program, which provides Rs 1,000 per acre to farmers who avoid burning paddy, suggesting a phased implementation of similar schemes across agricultural states like Punjab, Uttar Pradesh, and Bihar.
To further strengthen the sector, IBA has proposed developing a framework for biogas producers to trade carbon credits on domestic and international platforms.
The association recommends expediting legislation on renewable energy and green certificate trading, while suggesting the implementation of cap-and-trade practices for carbon-intensive entities. They also advocate for government grants to support the transportation of feedstock from farms to biogas plants.
The comprehensive proposal includes recommendations for streamlining certification and trading processes to enhance export opportunities, while emphasising the need for practical implementation measures.
These initiatives aim to create additional revenue streams for producers while supporting India's climate change commitments and rural economic development.
(KNN Bureau)
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