The Ministry of New and Renewable Energy (MNRE) has revised the guidelines for the National Biomass Program for the financial years (FY) 2022 to 2027 (Phase-I).

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, several processes relating to paperwork and approvals have been simplified. This will enable the industry, especially MSMEs, to enhance production.

A key highlight of the revisions is the integration of technology to enable the use of Internet of Things (IoT)-based monitoring solutions or quarterly data submissions instead of the existing project supervisory control and data acquisition and remote monitoring systems.

In 2022, the MNRE notified the National Bioenergy Program, valid from FY 2022 to FY 2026, with an outlay of ₹8.58 billion (~$104.66 million) approved for Phase-I.

Developers of briquette and pellet manufacturing plants will no longer need to submit techno-economic feasibility reports, high-resolution pictures, and environmental impact assessment clearance.

The earlier requirement for a two-year briquette or pellet sale contract has been replaced with a general sale agreement.

The subsidy disbursement mechanism under the Central Financial Assistance (CFA) has also been revised. Applicants seeking subsidies from the Ministry 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.

The revisions also simplify the performance inspection period. The inspection team will conduct a performance inspection at the plant following its successful commissioning. The plant’s performance inspection must be carried out within 18 months from the date of commissioning or within eight months from the date of issue of the “in principle” approval, whichever is later.

A suitable extension will be granted in case of an inspection delay due to reasons beyond the developer’s control.

Last year, MNRE revised the CFA rates for biomass pellet manufacturing units under the National Bioenergy Program. For the briquette manufacturing plant, the revised estimate was ₹0.9 million (~$10,767) per MTPH, with a maximum of ₹4.5 million (~$53,808) per project.