The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021–22 to 2025–26. These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.

Under the new framework, Ministry has simplified several processes, such as cutting down on paperwork and easing approval requirements, which will enable the industry especially MSMEs to enhance their production. These changes align well with improvement of stubble management and India’s broader goal of reaching net-zero emissions by 2070.

One of the major highlights of the revision is technological integration by enabling the use of IoT-based monitoring solutions or quarterly data submissions instead of expensive and high-tech systems like SCADA. This cost-effective step promotes digital monitoring and accountability, especially for smaller business operators.

The guidelines also encourage significant simplification of documentation requirements. Developers of briquette and pellet manufacturing plants will no longer be required to submit number of documents related to clearance matters. This change will save time, and promote ease of doing business.

In a move to enhance operational flexibility, the earlier requirement for a two-year briquette or pellet sale contract has been replaced with a general sale agreement. This change will allow project developers to respond more dynamically to market conditions without being constrained by long-term contracts. The amended guidelines rules allow flexible selling of biomass products, meaning businesses no longer need long-term contracts to get started.

Furthermore, the subsidy disbursement mechanism under the Central Financial Assistance (CFA) component has been made performance-based and transparent. Projects that run efficiently, above 80%, will receive full financial assistance, while below 80% will receive on pro-rata basis.

The performance inspection period has been simplified. Earlier, it has to be done within a period of 18 months from the date of commissioning, but now, it can be carried out within 18 months period either from the commissioning date or from the date of In-principle approval, whichever is later. Additionally, to cater on-ground operational challenges of developers, Secretary, MNRE may extend the time period.

During inspection, performance report was made on the basis of Operation Plant at an average of 80% of rated capacity measured over a period of three consecutive days, taking average 16 Hrs per day. However, now it has been reduced to just 10 hrs as the inspection process primarily aims to verify the claimed and operational capacities and inspection for 10 hrs continuous operation would suffice this purpose.

Recognizing the urgent need to address air pollution, especially from stubble burning in northern India, the new guidelines include a provision allowing biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh to choose the most beneficial support scheme, either from MNRE or CPCB.

These revisions will not only support the smooth implementation of the biomass programme and timely delivery of approved financial support to commissioned plants, but also encourage the sector to establish more biomass-based plants. This would ultimately help in addressing the menace of crop residue burning and ensure sustainable management of agricultural waste.

Overall, the updated guidelines will make it easier for businesses to adopt biomass technologies, provide financial incentives for efficient operations, and support India's clean energy efforts, all while promoting practical, business-friendly solutions to waste management and pollution reduction.

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Navin Sreejith

Revisions Press Release