GS Paper - 3 (Energy)

The Ministry of New and Renewable Energy (MNRE) said it has launched a loan interest subvention scheme in association with UNIDI and GEF to provide financial assistance for innovative waste to energy biomethanation projects.


  1. The industrial organic waste-to-energy bio-methanation projects are generally capital intensive and financially sensitive to both operating costs, including waste availability, and revenue, particularly biogas yield and its utilisation scenario.
  2. The United Nations Industrial Development Organization (UNIDO) and MNRE launched the Global Environment Facility (GEF)-funded loan interest subvention scheme that provides financial assistance to innovative waste to energy biomethanation projects and business models.
  3. Innovations in such projects seek to improve overall energy output thereby minimising the cost of energy generation but may lead to an increase in the initial project cost at the establishment stage yet increase revenue and reduce operating costs over project's lifetime.
  4. The loan scheme provides financial assistance to beneficiaries to reduce the financial burden on account of interest on the loan component faced by such demonstration projects.
  5. A GIS-based inventory tool of organic waste streams developed under the GEF-MNRE-UNIDO project was also launched.
  6. The tool provides district level estimates of available urban and industrial organic wastes and their energy generation potential across India.
  7. The tool will enable SMEs and project developers to set up new waste to energy projects and may facilitate the rapid growth of biomethanation in the waste-to-energy sector in the country.