Author: PPD Team Date: 30/06/2025
On June 27, 2025, the Ministry of New and Renewable Energy (MNRE) issued new guidelines under its Waste to Energy (WTE) Scheme, simplifying the process for projects converting waste into biogas, BioCNG, syngas, or power. These revisions update the earlier versions released in 2018, 2020, and 2022.
Revised performance testing norms
WTE plants must now demonstrate continuous operation for 24 hours at 80% of rated or maximum CFA-eligible capacity to qualify for full Central Financial Assistance (CFA). Bio-methanation plants must run digesters continuously for 72 hours for raw biogas generation.
CFA will be disbursed in two phases:
- 50% after securing Consent to Operate (CTO) from the State Pollution Control Board, with a bank guarantee.
- Remaining 50% after achieving the 80% performance benchmark.
If the plant performs below 80%, the CFA is calculated proportionally. For example, 73% performance will result in 91.25% CFA. No financial assistance is granted for operations below 50% capacity.
Inspection process and timeline
Performance inspections must take place within 18 months from either commissioning or in-principle approval, whichever is later. Developers may seek extensions for uncontrollable delays by submitting a request to the MNRE Secretary before the deadline.
Inspections will now be conducted by joint teams comprising the Sardar Swaran Singh National Institute of Bio-Energy (SSS-NIBE), State Nodal Agencies (SNAs), Biogas Technology Development Centres (BTDCs), or other MNRE-recognised agencies.
Two separate inspection reports are required:
- One post-CTO for the initial 50% CFA release
- Another after performance testing for the balance CFA
For projects not seeking advance CFA, only one report is needed.
Wider coverage and flexibility
These updated rules apply to all projects approved under the 2018, 2020, and 2022 WTE Scheme guidelines. MNRE retains the authority to relax provisions based on project-specific needs. The revisions were cleared following the Department of Expenditure’s directive dated April 30, 2025.