The Ministry of New & Renewable Energy (MNRE) promotes renewable energy projects including Bio‑CNG (compressed biogas) under its National Bioenergy Programme (2021–22 to 2025–26). This programme supports setting up waste‑to‑energy plants that convert urban, industrial and agricultural organic wastes into clean energy such as biogas and Bio‑CNG by providing Central Financial Assistance (CFA) to project developers.

Financial incentives include subsidies (for example, around ₹4 crore per 4,800 kg/day Bio‑CNG capacity, with a cap per project) to reduce capital costs of new Bio‑CNG plants and encourage renewable fuel infrastructure. Projects must meet performance and operational criteria to receive full support. MNRE’s programme aims to boost sustainable energy generation, reduce waste, and support India’s clean energy goals.