PANAJI
In a major move to decarbonise the transport sector and a step towards a pollution-free bus fleet, the Goa government has proposed to convert diesel-powered State transport buses, which are less than seven years old, into CNG. The government also intends to provide subsidies for conversion of private buses and commercial vehicles from petrol or diesel to CNG.
The proposal is part of draft ‘Goa Bioenergy Policy’ which has been prepared by the Goa Energy Development Agency (GEDA) to create a framework for the promotion and regulation of bioenergy in the State. The policy speaks about blending CNG -- Compressed Natural Gas -- with CBG -- Compressed Biogas.
The policy, once finalized, will make it mandatory for the Boilers using coal to use briquettes and pellets and completely phase out using coal in two years.
According to the draft policy, bioenergy emerges as a critical pillar of Goa’s sustainable energy strategy. Technologies such as biomass pellets, briquettes, compressed biogas (CBG), ethanol, and biodiesel offer scalable and locally adaptable solutions to decarbonize the transport sector and reduce emissions.
“These bio-based fuels can be integrated into existing infrastructure, support rural livelihoods, and enhance energy security while aligning with national and global climate goals,” it said.
The policy seeks to harness these opportunities by creating an enabling framework for investment, innovation, and adoption of bioenergy technologies. It aims to position the state as a leader in sustainable energy transition, leveraging its natural resources and economic strength to build a resilient, low-carbon future.
The main goal of the policy is to promote the establishment of Bio-Energy units through private investors/developers, attracted by various facilities and incentives offered by the state government. The primary thrust is on promoting setting up facilities like Compressed Biogas Plant, Second Generation Ethanol Plant, Briquette/ pellet manufacturing and biomass collection.
In a bid to attract private investment so also to boost the local players to pitch in, the policy offers a range of incentives including 100 per cent exemption in electricity duty for 10 years from the start of commercial production, reimbursement of 50 per cent of Quality Certification cost of Rs 1 lakh or whichever is lower.
The government will provide capital subsidy of 25 per cent on the fixed capital investment (FCI) of a CBG plant of maximum one crore per tonne per day (TPD) and also on 2G ethanol plant with a capacity of 1.5 crore per kiloliter per day (KLPD) capacity.
Under biomass collection, the policy speaks about incentivizing the local bodies and farmers to establish feedstock collection centres with storage facilities. Manufacturers are required to source feed stock from these centres. Upfront subsidy of 25 per cent is proposed for co-operative agencies for a period of five years.
Apart from this, the Briquette, pellet, CBG, Ethanol, Biodiesel, Boilers for green heat steam units will be eligible for 50 per cent assistance for developing power, water, gas pipeline, road, drainage and sewage infrastructure up to the factory gate, subject to a maximum of Rs 5 crores if the investor acquires private land or gets undeveloped government land for setting up the unit.
