Results of a techno-economic evaluation of biomass gasifier based projects for decentralized power supply for remote locations in India are presented. Contributions of different components of diesel engine generator (DG) sets, dual fuel (DF) engine generator sets and 100% producer gas (HPG) engine generator sets to their capital costs as well as to the levelized unit cost of electricity (LUCE) delivered by the same have been analyzed. LUCE delivered to the consumers has been estimated to be varying in the range of Rs. 13.14-24.49/kWh (US$(1) 0.30-0.55/kWh) for DF BGPP. LUCE increases significantly if BGPP is operated at part loads. Presently available 40 kW capacity HPG systems in India are expected to be financially competitive with a DG set of equivalent capacity beyond a break-even diesel price of Rs. 34.70/l. It is expected to be financially more attractive than an equivalent capacity DF BGPP for diesel prices of more than Rs. 44.29/l. In certain specific conditions operating two smaller capacity systems has been found to be attractive as against a single larger capacity system. (c) 2006 Elsevier Ltd. All rights reserved.