Bio-CNG and CBG project finance, loans and subsidy advisory
Turn feedstock, technology and offtake assumptions into a traceable financial model before finalising the investment. We support vendor comparison, DPR/CMA, lender documentation and scheme eligibility review.
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What should a CBG financial model include?
A compressed-biogas project needs more than a gas-price assumption. Build the model around saleable output, delivered feedstock cost, operating availability and the time between spending and collections. Technology and production assumptions must be supported by project-specific technical evidence.
| Input | Evidence to obtain | Why it changes the funding requirement |
|---|---|---|
| Feedstock | Quantity and quality survey, test results, seasonal supply and delivered-price terms | Collection, transport, storage and supply variation affect operating cash needs |
| Plant and vendor | Comparable operating references, scope, exclusions, performance conditions and maintenance support | Headline equipment cost can omit civil works, utilities, spares or operating support |
| Saleable gas | Technical output basis, recovery assumptions, gas specification and downtime case | Raw biogas production is not the same as CBG accepted and paid for by a buyer |
| Offtake | Delivery point, gas testing, logistics, price mechanism and payment terms | Dispatch distance and collection timing affect margins and working capital |
| Manure | Quality requirements, processing costs, buyers, logistics and payment terms | Digestate production alone does not establish a profitable fertiliser business |
| Assistance | Current scheme conditions, sanction and release milestones | An expected subsidy is not cash available to pay the next loan instalment |
The GOBARdhan registration guidance explains the registration route for entities operating or intending to set up biogas plants. Registration must be distinguished from an approval under a particular funding scheme.
Worked example: what does DSCR tell a promoter?
Hypothetical illustration, not a project quotation or a lender's eligibility rule. Assume the annual cash available for debt service, calculated under the model's stated methodology, is ₹1.50 crore. Scheduled principal plus interest is ₹1.20 crore.
DSCR = cash available for debt service ÷ scheduled debt service = ₹1.50 crore ÷ ₹1.20 crore = 1.25.
Now assume lower saleable output and slower manure collections reduce that cash to ₹1.08 crore, while debt service stays ₹1.20 crore. The stressed DSCR becomes 0.90: the model has a ₹12 lakh annual cash shortfall before any additional funding arrangement. This is why a base-case ratio alone is insufficient. A lender determines its own methodology, covenants and acceptance criteria.
Do not count unapproved assistance as a substitute for promoter funds. Model a delayed-subsidy case separately and identify how the funding gap would be met.
Vendor identification: compare the complete scope
We can help identify potential vendors and structure a comparison covering operating references, feedstock suitability, quoted capacity, methane-recovery definitions, exclusions, payment milestones, warranty, service response and spare-parts responsibility. Independent engineering and operating-plant evidence remain essential; a commercial comparison is not a certification of gas yield.
The CBG plant bottlenecks guide explains feedstock procurement, methane loss, maintenance and fertiliser sales in more detail.
Loan and subsidy documentation support
Our work can include a project-cost statement, sources-and-uses schedule, DPR, CMA data where requested, cash-flow projections, debt-service scenarios, promoter document checklist and bank-query responses. Subsidy work can include eligibility review, expenditure classification, a deadline tracker and claim evidence.
The BioUrja programme page, checked on 9 September 2026, carries a closure notice for new Biomass and Waste-to-Energy applications until further notice. Check the current route rather than inserting an older CFA rate into a new DPR. Also read the Bio-CNG and GOBARdhan overview, with its scheme-specific qualifications.
Ongoing finance after commissioning
A plant MIS should distinguish feedstock received, operating hours, gas generated, CBG accepted by the buyer, invoices raised and cash collected. We can help structure operating and financial reporting with technical inputs supplied by the plant team.
Connect this work with Fractional CFO, Project Finance, Subsidy & Grants and Accounting & Bookkeeping.
Can every CBG project obtain a loan or subsidy?
No. Lender appraisal and scheme approval are separate decisions. Commercial viability, promoter contribution, documentation, permits, technical evidence and current scheme conditions need project-specific review. No approval, gas yield or vendor outcome is guaranteed.
Discuss your CBG project, or compare the planning requirements for a biomass pellet or briquette unit.