SRINAGAR, October 3, 2026 – In a significant move towards sustainable development and a circular economy, the Jammu and Kashmir Government has officially notified the Compressed Bio-Gas (CBG) Policy 2026. Hailing the newly approved framework, Chief Minister Omar Abdullah described the policy as a major step toward clean energy and turning organic waste into wealth. The policy, cleared by the Council of Ministers, aims to convert organic waste into high-quality bio-fertilizers and clean fuel while providing robust economic support to local farmers and promoting green investment in the Union Territory.
The comprehensive policy introduces substantial financial incentives to attract investors to the CBG sector. Under the new framework, the government is offering land for eligible projects at a nominal lease rate of just ₹1 per square meter, coupled with a 100% exemption from stamp duty. Investors are set to receive significant capital expenditure support, including a 100% reimbursement of the State Goods and Services Tax (SGST) for the first five years of operation. Furthermore, the policy offers an interest subvention of up to ₹2 crore on bank term loans and a manpower subsidy of ₹3,000 per month for each local unskilled worker employed by these projects over a two-year period.
To ensure ease of doing business, the administration has introduced a 60-day “deemed approval” mechanism for all non-statutory permissions through the Single Window Portal. If the concerned authorities fail to process an application within this timeframe, the permissions will be automatically deemed granted. The government will also actively facilitate feedstock aggregation and establish market linkages to supply bio-manure produced by the CBG units to an initial target of 10,000 local farmers. Valid until 2032, the policy is projected to create approximately 2,000 direct rural jobs by 2030, alongside numerous additional livelihood opportunities across the waste-to-energy supply chain. Chief Minister Abdullah congratulated Science and Technology Minister Satish Sharma and his department, emphasizing that the initiative is crucial for creating a cleaner, more resource-efficient Jammu and Kashmir while strengthening rural economies.
Published by True Roots Media Network