MNRE revises biomass programme guidelines to boost clean energy

New Biomass guidelines spark momentum for India’s clean energy drive

New Delhi: The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021–22 to 2025–26.

The amendments are aimed at promoting cleaner energy solutions, streamlining processes for businesses, and accelerating the adoption of biomass technologies across India

In a major push to improve ease of doing business, especially for Micro, Small and Medium Enterprises (MSMEs), the Ministry has simplified several procedures by cutting down paperwork and easing approval requirements. These changes also align with the national effort to improve stubble management and support India’s goal of achieving net-zero emissions by 2070.

One of the key changes in the revised framework is the adoption of cost-effective, IoT-based monitoring systems or quarterly data submissions in place of high-cost SCADA systems. This shift will promote digital accountability and monitoring, particularly benefitting smaller enterprises in the biomass sector.

To further enhance accessibility, documentation requirements for developers of briquette and pellet manufacturing plants have been significantly reduced. The removal of several clearance-related paperwork requirements is expected to save time and enable faster project implementation.

Another important change is the replacement of the previously mandatory two-year briquette or pellet sale contract with a more flexible general sale agreement. This move allows project developers to adjust their strategies in response to changing market conditions without being tied down by long-term agreements.

Under the revised subsidy mechanism, financial assistance through the Central Financial Assistance (CFA) component will now be performance-based.

Projects operating above 80% efficiency will receive full financial support, while those operating below that threshold will be funded on a pro-rata basis. This ensures that public funds are effectively used to support only high-performing operations.

Inspection requirements have also been relaxed. Earlier, project performance had to be verified within 18 months from the date of commissioning.

Now, the inspection can be conducted within 18 months from either the commissioning date or the date of in-principle approval, whichever is later.

Additionally, the operational performance test, which previously required an average of 16 hours of daily operation over three days, has now been reduced to 10 hours per day. This change acknowledges practical constraints while ensuring credibility in performance claims.

Addressing air pollution caused by stubble burning, especially in northern India, the new guidelines provide flexibility to biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh. These producers can now choose between MNRE and CPCB schemes, depending on which is more beneficial for their operations.

Overall, the revised guidelines are expected to streamline the implementation of biomass projects, improve the delivery of financial assistance, and support the expansion of biomass-based energy production.

By making the adoption of biomass technologies easier and more business-friendly, the updated framework advances India’s clean energy ambitions while promoting sustainable agricultural waste management