The Cabinet cleared two important policies aimed at taking the state’s economy to USD 1 trillion. As part of that, a nod was given to the UP Biofuel Policy-2022 and to the new MSME policy.
Urban development minister AK Sharma said that the biofuel policy would help in reducing pollution by preventing burning of municipal waste, agricultural and mandi waste and that from sugar mills. All this could be processed into biofuel, reducing the dependency on imported gas and oil and increasing farmers’ incomes.
The policy will be in place for five years and is expected to bring in of Rs 5,500 crore. It will include production of compressed biogas, biocoal, bioethanol and biodiesel. The incentive will mainly be provided on production,
For compressed biogas a subsidy of Rs 75 lakh per ton, up to a maximum of Rs 20 crore while on biocoal a subsidy of Rs 75,000 per ton up to a maximum of Rs 20 crore will be given. For Plants with an investment of Rs 50 crore or more, the government will pay for five km of the approach road.