From a demonstration unit in 1974, a national biogas programme was launched in three phases from 1980-81. In the first phase 20 biogas plants were provided free of cost to the villages having the highest livestock available, as the raw material for the biogas units is animal waste.
In the second phase the demand resulting from the first phase was met through sharing the cost with the beneficiaries. In the third phase all the cost is to be borne by the beneficiaries and the government will provide only technical assistance.
In case of deserving farmers, however, a subsidy is given presently in the form of cash varying from Rs. 1,50O to 3,000 depending on the merits of the case. Till 1991 over 5,000 biogas units have been installed in the country, including the remote areas.