The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme
- These changes aim to promote cleaner energy solutions, ease of doing business, and faster adoption of biomass technologies, contributing to India’s goal of achieving net-zero emissions by 2070.
| Biomass is material of biological origin, for example wood, dung or charcoal. Biomass energy involves using organic materials as fuel to produce electricity, heat, or transportation fuels. |
National Bioenergy Programme
- The programme will aid the use of huge surplus biomass, cattle dung, and industrial and urban biowaste available in the country for energy recovery.
- This programme has a provision of Central Financial Assistance (CFA) for various components related to Power generation, Biogas/BioCNG generation and Briquette/Pellet manufacturing.
The National Bioenergy Programme will comprises of the following sub-schemes
- Waste to Energy Programme (Programme on Energy from Urban, Industrial and Agricultural Wastes /Residues) to support setting up of large Biogas, BioCNG and Power plants (excluding MSW to Power projects).
- Biomass Programme (Scheme to Support Manufacturing of Briquettes & Pellets and Promotion of Biomass (non-bagasse) based cogeneration in Industries) to support setting up of pellets and briquettes for use in power generation and non-bagasse based power generation projects.
- Biogas Programme to support setting up of family and medium size Biogas in rural areas.
Key Features of Biomass Programme
- Central Financial Assistance (CFA): For instance for Briquette/Pellet manufacturing plants: Rs. 9.00 Lakhs/ TPH (Maximum CFA- Rs. 45.00 Lakh per project).
- Monitoring System: Projects must incorporate Supervisory Control and Data Acquisition (SCADA) or IoT-based remote monitoring systems to ensure real-time tracking and transparency.
- Eligibility Conditions: Only new machinery and equipment will qualify for the subsidy.
- Inspection Authorities: State Nodal Agencies (SNAs) and Sardar Swaran Singh National Institute of Bio-Energy (SSS-NIBE)
Revised Biomass Guidelines
- Ease of Doing Business
- Simplified procedures: Reduced paperwork and faster approvals, especially beneficial for MSMEs.
- Documentation relaxed: Briquette/pellet plant developers no longer need multiple clearance documents.
- Cost-Effective Monitoring: IoT-based alternatives allowed in place of costly SCADA systems.
- Enables digital oversight suited for small operators.
- Flexible Sales Model: No mandatory long-term contracts: Two-year sales agreement replaced by a general sale agreement.
- Performance-Linked Subsidies : Central Financial Assistance (CFA) now tied to efficiency
- Full subsidy if performance ≥ 80% and others get on Pro-rata if < 80%.
- A plant operating at 70% will get 7/8th of eligible CFA.
- Simplified Inspections: Only 10 hours of continuous operation needed for capacity verification.
- Region-Specific Support: Pellet units in Delhi, Punjab, Haryana, NCR (Rajasthan, UP) can choose between MNRE or CPCB schemes to tackle stubble burning.
Impact: The revisions aim to:
- Ensure timely financial support to approved plants.
- Encourage the setup of new biomass plants.
- Support sustainable agricultural waste management.
- Address pollution caused by stubble burning.
Other Initiatives
- GOBAR-Dhan (Galvanizing Organic Bio-Agro Resources – Dhan)
- Launched in 2018 under the Swachh Bharat Mission (Grameen), GOBAR-Dhan is part of the Biodegradable Waste Management strategy.
- It aims to enhance village cleanliness while promoting the generation of energy and wealth from cattle dung and organic waste.
- SATAT (Sustainable Alternative Towards Affordable Transportation)
- This initiative focuses on promoting clean, affordable fuel alternatives, benefiting farmers, entrepreneurs, and vehicle users alike.
- It supports the development of Compressed Bio-Gas (CBG) infrastructure and encourages the use of biofuels in the transport sector.
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