The Ministry of New and Renewable Energy (MNRE) has approved a supplementary budget of ₹1.4 billion (~$15.94 million) for the National Bioenergy Program (Phase I), to strengthen the promotion of renewable energy through waste-to-energy, biomass, and biogas projects.

Under the additional budgetary sanction, ₹375 million (~$4.26 million) has been earmarked for the waste-to-energy program, ₹525 million (~$5.97 million) for the biomass program, and ₹500 million (~$5.69 million) for the biogas program.

With this sanction, the total outlay for Phase I has increased to ₹9.98 billion (~$113.61 million), covering the implementation period from April 1, 2021, to March 31, 2026.

The National Bioenergy Program aims to harness clean energy from urban, industrial, and agricultural waste, promote biomass-based cogeneration in industries, and support small- and medium-scale biogas projects.

The allocation is fungible, meaning funds can be shifted among the sub-programs as needed for implementation. The existing guidelines, framework, and conditions laid down under Phase I of the program will continue to apply, along with any future amendments notified by MNRE.

MNRE recently simplified several processes relating to paperwork and approvals under the program. A highlight of the revisions was the integration of internet-of-things based monitoring of quarterly data submissions.

Developers of briquette and pellet manufacturing plants need not submit techno-economic feasibility reports, high-resolution pictures, and environmental impact assessment clearance anymore.

The subsidy disbursement mechanism under the Central Financial Assistance (CFA) was also revised. Applicants seeking subsidies from MNRE for a proposed plant will not be eligible to claim a capital subsidy from any other ministry or department.

Projects with an efficiency rate of over 80% will receive full financial assistance. Those with an efficiency rate below 80% will receive assistance on a pro rata basis. CFA will not be provided if the capacity utilization factor is less than 50%.

Earlier, plant inspections included a performance report on the plant’s operation, averaging 80% of rated capacity over three consecutive days, with standard operating hours of 16 hours per day. This requirement has been reduced to ten hours in the inspection process.

Last year, MNRE revised the CFA rates for biomass pellet manufacturing units under the National Bioenergy Program.