Union Minister of State for New and Renewable Energy and Power Shri Shripad Naik on Tuesday underscored the critical role of bioenergy in India’s clean energy transition, particularly in decarbonising industrial process heat in the MSME sector.
The Minister was delivering the keynote address at a national workshop titled ‘Introduction and Adoption of Biomass for Green Steam and Heat Applications in MSMEs’, organised by the Ministry of New and Renewable Energy (MNRE) in collaboration with the German Agency for International Cooperation (GIZ) and Grant Thornton Bharat. On the occasion, Shri Naik also jointly released a report titled “Decarbonizing MSMEs: Use of Biomass for Green Steam and Heat Application.”
Addressing the gathering, the Minister said that under the leadership of Prime Minister Narendra Modi, India’s renewable energy sector has witnessed unprecedented growth over the past decade, with bioenergy evolving from a peripheral option to a strategic pillar of the country’s clean energy agenda.
Shri Naik noted that bioenergy today extends beyond electricity generation and contributes to multiple national priorities, including energy security, rural livelihoods, waste management, pollution reduction and climate action. Highlighting the challenge of industrial decarbonisation, he pointed out that MSMEs account for nearly one-third of India’s manufacturing output and employ millions, yet continue to rely heavily on coal, furnace oil and pet coke for steam and heat requirements.
Transitioning MSMEs to clean and renewable thermal energy is therefore essential, he said, adding that biomass-based green steam and heat solutions offer a practical, scalable and India-specific pathway. The Minister highlighted India’s abundant availability of agricultural residue, animal waste and municipal solid waste, which can be converted into value while reducing emissions and creating additional income opportunities for farmers and rural entrepreneurs.
He outlined the government’s integrated approach through initiatives such as the National Bioenergy Programme, SATAT and GOBARdhan, which support biomass briquettes and pellets, non-bagasse-based cogeneration, industrial applications and decentralised solutions tailored to MSMEs. He also noted the alignment of these initiatives with the National Green Hydrogen Mission.
Referring to the report released during the workshop, Shri Naik said it provides a data-driven, sector-specific roadmap for adopting biomass-based green heat and steam solutions across industries including textiles, food processing, chemicals, foundries and pharmaceuticals. The report identifies key policy and market enablers such as biomass deployment obligations, standardised steam supply agreements, biomass exchanges and stronger supply-chain coordination, and is expected to serve as a reference for policymakers, industry stakeholders and financial institutions.
The Minister stressed that technology alone cannot drive transformation and called for close collaboration across the biomass value chain, involving farmers and FPOs, aggregators, logistics providers, boiler manufacturers, energy service companies, financiers and regulators. He added that MSMEs require confidence in fuel availability, price stability, operational reliability and supportive policy frameworks.
Calling bioenergy a reflection of the spirit of “Sabka Saath, Sabka Vikas,” Shri Naik expressed confidence that the workshop and the report would accelerate the adoption of green steam and heat solutions across the MSME sector.
Speaking at the event, MNRE Secretary Shri Santosh Kumar Sarangi said biomass-based applications have the potential to be deployed across the country, ranging from municipal solid waste-to-energy projects and compressed biogas to decentralised rural biogas plants. These solutions, he said, support livelihoods, strengthen rural value chains and promote decentralised energy access, making bioenergy a critical pillar of India’s clean energy transition.
Referring to the report, the Secretary highlighted its findings on the significant potential for biomass-based industrial heat and steam applications across sectors such as textiles, food processing, metals and artisan-based industries, with adaptability for both large-scale and decentralised use. He emphasised the need to strengthen biomass supply chains, enhance research and development, and promote multi-fuel boiler technologies to ensure year-round fuel availability and cost-effective operations for MSMEs.
The workshop was attended by senior MNRE officials, representatives from the German Embassy and GIZ, industry leaders, MSMEs, financial institutions, state governments, technology providers and knowledge partners.
