New Delhi: In a bid to strengthen India’s clean energy transition and promote the efficient use of biomass and biowaste resources, the Ministry of New and Renewable Energy (MNRE) has issued revised guidelines under Phase-I of the National Bioenergy Programme, applicable for FY 2021–22 to 2025–26. The updated framework is designed to simplify procedures, promote ease of doing business, and encourage faster adoption of biomass and waste-to-energy technologies across the country.
The revised guidelines cover both the Biomass Programme and the Waste-to-Energy Programme, introducing major reforms aimed at reducing administrative burden, enhancing operational flexibility, and aligning financial assistance with plant performance.
One of the most significant reforms under the revised Biomass Programme is the simplification of documentation and approval procedures, particularly benefiting micro, small, and medium enterprises (MSMEs). Key changes include:
Reduced documentation for briquette and pellet manufacturers by eliminating requirements for multiple clearances.
Flexible sale arrangements: The previous mandate for a two-year briquette/pellet sale contract has been replaced with a general sale agreement, giving project developers more flexibility to respond to market dynamics.
IoT-based digital monitoring introduced as a cost-effective alternative to expensive SCADA systems, enabling easier compliance, particularly for smaller units.
Improved stubble management: The guidelines support India’s goal to reduce air pollution from stubble burning, especially in northern states.
The Central Financial Assistance (CFA) mechanism has also been restructured. Projects operating at or above 80 percent capacity will receive full CFA, while those below will be eligible for assistance on a pro-rata basis. The performance inspection window has been widened, now allowing inspection within 18 months of commissioning or from the date of in-principle approval—whichever is later.
In a region-specific initiative, biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh can now choose between support from MNRE or the Central Pollution Control Board (CPCB), depending on which scheme provides greater benefits.
The revised norms also reduce the inspection duration from a three-day, 16-hour daily operation to a one-day, 10-hour continuous performance test, streamlining the evaluation process while ensuring accountability.
In parallel, MNRE has also issued revised guidelines for the Waste-to-Energy Programme, focusing on increased transparency, quicker disbursement of CFA, and greater support for compressed biogas (CBG), biogas, and power generation from biowaste.
Key changes include:
Two-stage CFA release mechanism:
50 percent of CFA will now be released after obtaining the Consent to Operate certificate from the State Pollution Control Board, backed by a bank guarantee.
The remaining amount will be disbursed after the plant achieves 80 percent of its rated capacity or the eligible capacity for CFA—whichever is lower.
Pro-rata CFA support will be provided to projects that achieve less than 80% capacity utilisation, while no support will be extended to projects operating below 50 percent PLF (Plant Load Factor).
Streamlined inspections: Joint inspections will now be led by the National Institute of Bio-Energy along with either the State Nodal Agency or a Biogas Technology Development Centre. Developers who do not seek advance CFA will be subject to only one performance inspection, reducing procedural bottlenecks.
The MNRE said these reforms are closely aligned with India’s national commitments to achieve net-zero emissions by 2070 and build a circular economy based on sustainable resource management. By addressing real-world challenges faced by project developers and simplifying key processes, the ministry aims to significantly accelerate the deployment of clean energy solutions, particularly in rural and semi-urban regions.
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