The Ministry of New and Renewable Energy (MNRE) has announced updated guidelines for its Biomass Programme, covering Phase-I (FY 2021–22 to 2025–26) of the National Bioenergy Programme. These revisions are set to foster cleaner energy solutions, streamline operations, and expedite the widespread adoption of biomass technologies across India.
Under the new framework, the Ministry has significantly simplified various processes, including reducing paperwork and easing approval requirements. This move aims to empower the industry, particularly Micro, Small, and Medium Enterprises (MSMEs), to enhance their production of bioenergy. These changes are strategically aligned with efforts to improve stubble management and contribute to India’s ambitious goal of achieving net-zero emissions by 2070.
Key Highlights of the Revised Guidelines
Technological Integration
The updated guidelines promote the use of cost-effective, digital monitoring solutions such as IoT-based systems or quarterly data submissions, offering alternatives to expensive and high-tech systems like SCADA. This measure enhances accountability, especially for smaller operators.
Simplified Documentation
Briquette and pellet manufacturing plants will benefit from significantly reduced documentation requirements related to clearance matters, saving time and fostering a more conducive business environment.
Enhanced Operational Flexibility
The previous mandate for a two-year briquette or pellet sale contract has been replaced with a more flexible general sale agreement. This allows project developers to respond dynamically to market conditions without being constrained by long-term commitments.
Performance-Based Financial Assistance (CFA)
The subsidy disbursement mechanism under the Central Financial Assistance (CFA) component has been made performance-based and transparent. Projects operating efficiently above 80% capacity will receive full financial assistance, while those below 80% will receive aid on a pro-rata basis.
Streamlined Inspection Period
The performance inspection period has been made more flexible. It can now be carried out within 18 months either from the commissioning date or the date of in-principle CFA approval, whichever is later. Furthermore, the Secretary, MNRE, has the authority to extend this period to address on-ground operational challenges.
Reduced Inspection Duration
The operational capacity inspection, previously conducted over three consecutive days averaging 16 hours per day, has been reduced to a single 10-hour continuous operation. This aims to verify claimed and operational capacities more efficiently.
Addressing Air Pollution
To tackle air pollution, especially from stubble burning in northern India, the new guidelines include a provision allowing biomass pellet producers in Delhi, Punjab, Haryana, and the NCR districts of Rajasthan and Uttar Pradesh to choose the most beneficial support scheme available from either MNRE or the Central Pollution Control Board (CPCB).
These revisions are expected to facilitate the smooth implementation of the biomass programme, ensure timely financial support to commissioned plants, and encourage the establishment of more biomass-based facilities. This concerted effort will ultimately aid in addressing crop residue burning and promote sustainable management of agricultural waste, bolstering India’s overall clean energy initiatives.
