Govt extends scheme for biomass-based cogeneration projects to March 2021

• The deadline for the scheme had expired on March 31 this year

• The policy provides central financial assistance for projects utilising biomass like bagasse, agriculture-based industrial residue, crop residues, among others

New Delhi: The Centre has extended the scheme for availing central financial assistance for biomass-based cogeneration projects to March 31, 2021, an official order from the Ministry of New and Renewable Energy said on Thursday. The deadline for the scheme had expired on March 31 this year. The MNRE order said, "… a decision has been taken for continuation/extension of the biomass based cogeneration Scheme namely "Scheme to Support Promotion of Biomass based Cogeneration in Sugar Mills and Other Industries (up to March 2020)" beyond 31st March, 2020 without changing scope, nature, coverage and without creating additional posts till 31st March, 2021 or till the date the recommendations of 15th FC come into effect, whichever is earlier."

The notification added that the expenditure on this scheme will be met from the budget provisions given under Bio-Power Head. 

The biomass-based cogeneration scheme: What is it?

The policy provides central financial assistance for projects utilising biomass like bagasse, agriculture-based industrial residue, crop residues, wood produced through energy plantations, weeds and wood waste produced in industrial operations. However, municipal solid waste is not covered under the programme.

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Registered companies, partnership firms, proprietorship firms, cooperatives, public sector companies and government-owned firms are eligible for financial support under the scheme. To avail financial support, the applicant must have availed term loan from any financial institution like public sector banks, NBFC, private sector banks, central or state cooperative banks.

Under the scheme, CFA will be provided at the rate of Rs 25 lakh for bagasse cogeneration projects and Rs 50 lakh for non-bagasse cogeneration projects.

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