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MNRE Simplifies Biomass Programme Guidelines to Accelerate Project Deployment

The Ministry of New and Renewable Energy (MNRE) has issued a significant revision to the guidelines under its Biomass Programme, part of the National Bioenergy Programme (Phase-I), running until FY 2025-26. The changes aim to streamline project execution, reduce compliance burdens, and accelerate biomass-based energy adoption across India.

Key changes include the removal of requirements such as the techno-economic feasibility report, long-term fuel sale contracts, Environment Impact Assessment (EIA) clearances, and SCADA system details. The performance inspection norms have also been eased. Now, briquette and pellet plants must operate at 80% of rated capacity for just 10 continuous hours—down from the earlier requirement of demonstrating sustained performance over days and months. Central Financial Assistance (CFA) will be granted on a pro-rata basis if the capacity utilization factor falls below 80%, with no CFA for performance below 50%.

MNRE emphasized that subsidies cannot be claimed under multiple central schemes for the same project. In high-pollution regions such as Delhi, Punjab, and Haryana, developers can opt between MNRE and CPCB subsidy schemes by submitting a notarised declaration.

These updates, effective immediately, aim to eliminate red tape, promote faster implementation, and support India’s clean energy and bioeconomy goals through improved biomass utilization.