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Madhya Pradesh Launches Biofuel Scheme with Major Incentives for Investment and Infrastructure

The Madhya Pradesh government has approved a new Biofuel Scheme aimed at promoting the production and use of various types of biofuels in the state. This scheme is designed to attract private investment and support the development of infrastructure required for biofuel production. Under this scheme, the government will offer up to ?200 crore in investment support. The incentives will be increased based on important factors like the efficiency of the plant, how much biofuel is exported, and the number of jobs created.

One of the key benefits includes a 50% subsidy (up to ?5 crore) for building infrastructure related to biofuel projects. Investors will also enjoy a 10-year exemption from electricity duty, which will help reduce operational costs significantly. Additionally, the scheme offers a 50% reimbursement on stamp duty and gives priority to land allotment at discounted rates.

To boost the supply chain and support small producers like Farmer Producer Organizations (FPOs) and cooperatives, the scheme offers up to 30% upfront subsidy on the purchase of biofuel-related machinery. Overall, this initiative is expected to strengthen the biofuel ecosystem, support rural development, and contribute to cleaner energy usage in the state.