MNRE Simplifies Biomass Programme Guidelines To Streamline CFA And Project Implementation

The Ministry of New and Renewable Energy (MNRE) has announced revisions to the Guidelines for the Biomass Programme under the National Bioenergy Programme. These changes, dated June 27, 2025, amend earlier guidelines notified on November 2, 2022, and are applicable for the programme duration from FY 2021–22 to 2025–26 (Phase I). The amendments aim to simplify documentation and update performance criteria for biomass-based energy projects, including briquette and pellet manufacturing plants.

Several clauses have been omitted to reduce procedural burden. Requirements such as the techno-economic feasibility report, high-resolution site photographs with timestamps, EIA clearance, and detailed off-take agreements have been removed for briquette and pellet manufacturing plants. The need for SCADA or IoT-based monitoring systems has also been simplified, now requiring only a commitment to share quarterly production data.

A major revision has been made to the performance inspection criteria. For plants to be eligible for 100% Central Financial Assistance (CFA), they must now demonstrate continuous operation at 80% of the rated capacity for 10 hours. A pro-rata CFA structure is introduced for those operating between 50% and 80% capacity. For example, a plant with a 73% capacity utilization factor (CUF) will receive 91.25% of the eligible CFA. No CFA will be granted if CUF falls below 50%. CUF is calculated based on production over 10 hours or three months, depending on the context.

Additionally, applicants are now required to submit a one-minute video and geotagged photographs during the inspection process. Another key update permits plants to commission operations before receiving in-principle approval from MNRE, provided prior intimation is given to the implementing agency.

The CFA rate for pellet manufacturing has also been revised as per an earlier order dated July 16, 2024. These new rates apply to plants using new machinery exclusively for manufacturing either torrefied or non-torrefied pellets. Plants that manufacture both briquettes and pellets using the same machine are not eligible under this revised CFA structure.

Applicants from the National Capital Territory (NCT) of Delhi, and certain districts in Punjab, Haryana, Rajasthan, and Uttar Pradesh are informed that they can opt for CFA under either MNRE’s scheme or the Central Pollution Control Board’s (CPCB) scheme. However, they must submit a notarized undertaking confirming that they are not availing CFA from both schemes.

These amendments aim to streamline the Biomass Programme and ensure clarity in implementation and CFA disbursement, while promoting sustainable biomass energy solutions. The changes have been approved by the Department of Expenditure and the Hon’ble Minister of New & Renewable Energy.