MNRE eases rules under Biomass Programme

The Ministry of New and Renewable Energy (MNRE) has revised guidelines under the Biomass Programme, part of the National Bioenergy Programme (Phase-I) for FY 2021–22 to 2025–26. Announced on June 27, 2025, the changes aim to reduce compliance burden and simplify project execution for developers.

Simplified documentation process

Several submission requirements for briquette and pellet plants seeking Central Financial Assistance (CFA) have been removed. Developers no longer need to file techno-economic feasibility reports, high-resolution site photos, or environmental clearance documents. This is expected to speed up project approvals.

Eased commissioning protocol

If a plant is commissioned before receiving in-principle approval, developers can now update the BioUrja portal with the commissioning status. Prior intimation to the implementing agency is no longer required.

Revised performance inspection timeline

Performance inspections must now occur within 18 months from either commissioning or in-principle approval, whichever comes later. Extensions are permitted in cases of delay not attributable to the developer, subject to approval from the MNRE Secretary.

Stricter capacity benchmarks for testing

For full CFA eligibility, briquette and pellet plants must demonstrate 80% of rated capacity for at least 10 hours. Plants performing below this threshold receive proportionate CFA. For example, 73% performance earns 91.25% CFA. No CFA is granted for plants operating below 50%.

Updated monitoring and subsidy norms

SCADA-based monitoring is replaced with IoT-based options or quarterly production data reporting. Developers cannot claim capital subsidies from other central ministries if applying for MNRE’s CFA.

For pellet plants, revised CFA rates notified on July 16, 2024, apply based on the type of dedicated machinery—either for non-torrefied or torrefied pellets, not both.

Special provisions for NCR states

In Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh, developers can opt for either MNRE’s CFA or the higher CFA offered under CPCB’s pelletization scheme. A notarised undertaking on Rs 500 stamp paper is required to confirm that no CPCB assistance has been claimed.

Scope of application

These changes apply to all biomass component projects notified on November 2, 2022, and have been cleared by the Department of Expenditure and approved by the Minister of New and Renewable Energy.