The Finance of Clean Air – What the 2024 Budget Had for Crop Residue Burning

The 2024 Interim Budget gives a strong push to ex-situ crop residue management by providing explicit financial support for building a biomass supply chain. It allocates INR 564.75 crore for biomass aggregation machinery for CBG producers and increases funding for the National Bio Energy Programme from INR 75 crore to INR 300 crore. The Budget also announces phased mandatory blending of CBG in CNG and PNG, which is expected to create a market for CBG uptake. However, it does not address offtake challenges for by-products such as FOM and LOM, and the National Biofuel Fund remains without a dedicated allocation.

In comparison, in-situ management receives limited focus. The standalone CRM Scheme no longer has a separate allocation and is now funded through broader schemes like RKVY and the Agriculture Infrastructure Fund, making its exact support unclear. While allocations for training, innovation, and oversight have increased, the Budget overall prioritises ex-situ measures more than in-situ crop residue management.