Revised Guidelines for Biomass Programme

The Ministry of New and Renewable Energy (MNRE) has introduced revised guidelines for the Biomass Programme under the National Bioenergy Programme. These changes are effective for the fiscal years 2021–22 to 2025–26. The amendments aim to enhance cleaner energy solutions and facilitate the adoption of biomass technologies across India. The focus is on improving efficiency and reducing the bureaucratic burden for businesses, particularly Micro, Small and Medium Enterprises (MSMEs).
Simplification of Processes
The revised guidelines reduce paperwork and approval requirements. This streamlining allows MSMEs to enhance production capabilities. The Ministry aims to align these changes with better stubble management and India’s goal to achieve net-zero emissions by 2070.
Technological Integration
A key feature of the new guidelines is the integration of Internet of Things (IoT) monitoring solutions. These cost-effective systems replace expensive options like SCADA. This shift promotes digital monitoring and accountability, particularly benefiting smaller operators in the biomass sector.
Documentation Requirements
The guidelines simplify documentation for developers of briquette and pellet manufacturing plants. The need for extensive clearance documents has been eliminated. This change saves time and encourages ease of doing business in the biomass sector.
Flexibility in Sales Contracts
The requirement for a two-year sales contract for briquettes or pellets has been replaced with a general sale agreement. This allows project developers to respond more dynamically to market fluctuations without being tied to long-term contracts.
Performance-Based Subsidy Disbursement
The subsidy disbursement mechanism under the Central Financial Assistance (CFA) has been revised to be performance-based. Projects operating above 80% efficiency will receive full financial assistance, while those below this threshold will receive support on a pro-rata basis. This ensures that only efficient operations are rewarded.
Simplified Inspection Processes
The performance inspection period has been simplified. Inspections can now be conducted within 18 months from either the commissioning date or the date of in-principle approval. Additionally, the duration for performance verification has been reduced from 18 hours to 10 hours of continuous operation. This change aims to make inspections more efficient.
Addressing Air Pollution
The guidelines specifically address air pollution caused by stubble burning in northern India. Biomass pellet producers in affected regions can choose the most beneficial support scheme from either MNRE or the Central Pollution Control Board (CPCB). This flexibility aims to promote the establishment of more biomass-based plants and mitigate agricultural waste issues.
Support for Clean Energy Efforts
Overall, the revised guidelines are designed to facilitate the adoption of biomass technologies. They provide financial incentives for efficient operations and promote sustainable waste management. These efforts contribute to India’s clean energy objectives and address pollution reduction effectively.