The Ministry of New and Renewable Energy (MNRE) has introduced revised guidelines for its Waste-to-Energy (WtE) Programme, a crucial component of the National Bioenergy Programme. These updated guidelines aim to establish a more efficient, transparent, and performance-oriented ecosystem for Bio Waste to Energy deployment across India, simplifying procedures and accelerating the disbursal of Central Financial Assistance (CFA).
The revisions are designed to significantly enhance the ease of doing business for both private and public sector entities. By streamlining processes, such as reducing paperwork and easing approval requirements, the Ministry intends to boost the production of Compressed Biogas (CBG), Biogas, and Power, particularly benefiting Micro, Small, and Medium Enterprises (MSMEs). These strategic changes align with India’s broader goals of improved waste management, including agricultural stubble and industrial waste, and its commitment to achieving net-zero emissions by 2070.
A pivotal highlight of the updated guidelines is the improved system for releasing Central Financial Assistance. Recognizing the challenges faced by developers in achieving an 80% generation threshold, MNRE has introduced flexible provisions for CFA release based on plant performance. Previously, financial support was contingent on a project attaining 80% generation.
Under the new framework, CFA will be released in two stages:
Initial Disbursal
50% of the total CFA will be released after the project obtains the “Consent to Operate” certificate from the State Pollution Control Board, against a bank guarantee.
Balance Release
The remaining CFA will be disbursed upon achieving 80% of the rated capacity or the maximum CFA eligible capacity, whichever is lesser.
Furthermore, a provision for pro-rata disbursement based on percentage output has been introduced, even if a plant does not achieve 80% generation during inspection. However, no CFA will be provided if the Plant Load Factor (PLF) falls below 50%. This flexible approach aims to offer financial viability and support to developers during operational phases. Developers also have the flexibility to claim CFA within 18 months from the date of commissioning or from the date of in-principle approval of CFA, whichever is later.
The inspection process has also been refined to ensure greater credibility, transparency, and accountability. The revised norms mandate joint inspections led by the National Institute of Bio-Energy (SSS-NIBE), an autonomous institute under MNRE, in collaboration with either State Nodal Agencies (SNAs), Biogas Technology Development Centers (BTDCs), or any agency empaneled by MNRE. For developers not opting for advance CFA, only a single performance inspection is required, further reducing procedural delays.
