MNRE clarifies operational rules for BioCNG project funding

The Ministry of New and Renewable Energy (MNRE) has released a memorandum detailing performance requirements that BioCNG projects must meet to qualify for Central Financial Assistance (CFA). The directive sets out minimum generation thresholds for disbursing the full amount of support.

The clarification applies to the Waste to Energy Programme under Phase-I of the National Bioenergy Programme. It follows the original guidelines issued on November 2, 2022, and the subsequent revision on June 27, 2025.

As per the directive, performance inspection will now require three consecutive months of operation. During this period, plants must demonstrate continuous 24-hour operation at no less than 80 per cent of rated capacity or the maximum CFA-eligible capacity, whichever is lower.

An annexure to the memorandum includes a table outlining minimum generation benchmarks for BioCNG plants with capacities ranging from 2 tonnes per day to 33 tonnes per day.

The memorandum specifies that CFA will not be granted if the plant load factor is under 50 per cent. For projects exceeding 24 tonnes per day, generation data for a 24-hour run at no less than 50 per cent of rated capacity must be submitted.

The directive, issued with the Secretary’s approval, has been circulated to implementing bodies such as IREDA and state-level agencies.