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Two pilot projects will be undertaken in Maharashtra and Madhya Pradesh under the aegis of partnership for clean indoor air of the US environment protection agency.
The grants were awarded to the Appropriate Rural Technology Institute and Society for Development Alternatives.
"We hope to improve the livelihood and quality of life of India's households through these projects," deputy chief of the mission Robert Blake said after handing over the grant.
The ARTI project will replace the existing fuel-stove combinations by a compact biogas system in about 2000 homes in Maharashtra while the DA project will aim at providing easy access of retail credit for improved 'chullahs' and other cooking technologies to about 3000 families.
Both the projects will also conduct statewide campaigns for social marketing and public awareness.
"These two projects had been selected from among 90 competitive proposals. The aim of the partnership will be to reduce risks from indoor air pollution and provide people with reliable, affordable and clean cooking practices", John Mitchell of USEPA said.