Government encourages people to move towards the briquetting technology by offering relaxation and incentives on the briquetting plant project. The subsidy on the biomass briquetting plant varies from state to state and the government taxes. This subsidy on briquetting is not just provided by the Indian government but is also provided in foreign countries. It not just encourages people to start briquetting projects but also sets an initiative for controlling the air pollution and saving the environment for harmful gases that increase the global warming.

The Indian government has presented various privileges that the people can avail for implementing the briquetting projects:

  • 100% depreciation on the total value of briquetting plant and machine for the first year
  • Various states have exempted the briquettes from sales tax
  • The industry of manufacturing is free from obtaining any kind of license
  • The briquetting plant and project set up is completely free from all type of excise duty
  • For the first five years the company is free from the income tax
  • After 5 years, the rate of interest applicable on briquetting is comparatively low
  • No requirement of NOC from the state pollution boards
  • The government even provides a subsidy of 35% on the cost of briquetting plant
  • In the first year the government offers 80% of depreciation on capital cost
  • Financial support is even provided by the government for setting up the briquetting project
  • To make it easy for the companies and industrials business people government allows declination of the cost of the total value of briquetting plant and machineries
  • Some states have allowed the sales of briquetting completely tax free