India’s commitment to a sustainable future is furthered by the Biomass Programme, a key initiative under the National Bioenergy Programme. This program, backed by the Ministry of New and Renewable Energy (MNRE), aims to promote the use of biomass for energy generation, reduce pollution, and stimulate rural economies. The program focuses on supporting the manufacturing of briquettes and pellets, and promoting biomass-based cogeneration in industries.
Program Objectives and Vision
The Biomass Programme is designed with several key objectives:
- Briquette and Pellet Manufacturing: To support the establishment of facilities that convert agricultural residues into briquettes and pellets, providing cleaner fuel alternatives.
- Biomass Cogeneration: To encourage industries to adopt biomass-based cogeneration systems, enhancing energy efficiency and reducing reliance on fossil fuels.
- Stubble Burning Reduction: To reduce the harmful practice of stubble burning by utilizing surplus agricultural residues.
- Farmer Income Enhancement: To provide farmers with an additional source of income through the sale of agro-residues.
- Environmental Sustainability: To promote better environmental practices and reduce pollution.
Funding and Financial Assistance
The National Bioenergy Programme has a total budget outlay of Rs. 858 crore for Phase-I (FY 2021-22 to 2025-26), with the Biomass Programme allocated Rs. 158 crore. The program provides Central Financial Assistance (CFA) to project developers, along with service charges to implementing and inspection agencies. The CFA is structured as follows:
- Briquette/Pellet Manufacturing Plants: Rs. 9 Lakh per metric ton per hour (MTPH) of manufacturing capacity, with a maximum CFA of Rs. 45 Lakhs per plant.
- Biomass Cogeneration Projects: Rs. 40 Lakhs per MW of installed capacity, with a maximum CFA of Rs. 5 Crores per project.
Eligible Biomass Resources
The program supports projects that utilize a variety of biomass resources, including:
- Crop residues like paddy straw, wheat straw, mustard stalks, and cotton stalks.
- Wood from energy plantations such as prosopis juliflora.
- Weeds, palm leaves, coconut shells, and husks.
- Wood waste from industrial operations like saw dust, off cuts, and bark.
- Agro-based industrial residues such as rice husk and barley husk.
- Forest residues such as pine needles, branches, and stems of trees.
Terms and Conditions for Participation
- Bagasse-based cogeneration projects are not supported under this program.
- Projects that add capacity to existing plants are eligible for CFA only for the enhanced capacity achieved through new machinery.
- Projects using municipal solid waste, black liquor, slop, press mud, and other processed industrial waste are not eligible.
- Eligible applicants include companies, partnership firms, proprietorship firms, cooperatives, public sector companies, and government-owned firms.
- Minimum plant size requirements are set at 1 MTPH for briquette/pellet plants and 0.5 MW for biomass cogeneration plants.
Procedure for Availing CFA
- Proposal Submission: Proposals must be submitted through the BioURJA Portal before commissioning (with exceptions for specific projects). The last date for submission is December 31, 2025.
- In-Principle Approval: The Ministry issues an “In-Principle” approval based on project appraisals.
- Commissioning: Projects must be commissioned within 12 months (briquette/pellet plants) or 24 months (biomass cogeneration plants) from the date of “In-Principle” approval.
- Performance Inspection: After commissioning, an inspection team verifies the plant’s performance.
- Release of CFA: CFA is released after successful commissioning and performance inspection.
Performance Requirements
- Briquette/Pellet Plants: Must operate at an average of 80% of rated capacity over three days and 70% over three months.
- Biomass Cogeneration Plants: Must operate continuously for 72 hours at 80% of rated capacity and maintain an average of 80% over three months.
Project Monitoring and Implementation
Developers are required to share plant generation data with MNRE through SCADA systems. The program is subject to changes and is dependent on the availability of funds. The Indian Renewable Energy Development Agency Limited (IREDA) is the implementing agency.
Documentation Requirements
Extensive documentation is required for both “in-principle” approval and CFA release, including:
- Forwarding letters from developers or lead banks.
- Detailed Project Reports (DPR).
- Loan sanction letters.
- Techno-economic feasibility reports.
- Site photographs.
- Undertakings.
- Performance inspection reports.
- CA certificates, and more.
Conclusion
The Biomass Programme is a crucial step towards achieving India’s renewable energy goals. By harnessing the potential of biomass, this program not only provides clean energy but also contributes to rural development and environmental protection. This initiative is essential for promoting a sustainable and greener future for India.
India’s commitment to a sustainable future is furthered by the Biomass Programme, a key initiative under the National Bioenergy Programme. This program, backed by the Ministry of New and Renewable Energy (MNRE), aims to promote the use of biomass for energy generation, reduce pollution, and stimulate rural economies. The program focuses on supporting the manufacturing of briquettes and pellets, and promoting biomass-based cogeneration in industries.
Program Objectives and Vision
The Biomass Programme is designed with several key objectives:
-
Briquette and Pellet Manufacturing: To support the establishment of facilities that convert agricultural residues into briquettes and pellets, providing cleaner fuel alternatives.
-
Biomass Cogeneration: To encourage industries to adopt biomass-based cogeneration systems, enhancing energy efficiency and reducing reliance on fossil fuels.
-
Stubble Burning Reduction: To reduce the harmful practice of stubble burning by utilizing surplus agricultural residues.
-
Farmer Income Enhancement: To provide farmers with an additional source of income through the sale of agro-residues.
-
Environmental Sustainability: To promote better environmental practices and reduce pollution.
Funding and Financial Assistance
The National Bioenergy Programme has a total budget outlay of Rs. 858 crore for Phase-I (FY 2021-22 to 2025-26), with the Biomass Programme allocated Rs. 158 crore. The program provides Central Financial Assistance (CFA) to project developers, along with service charges to implementing and inspection agencies. The CFA is structured as follows:
-
Briquette/Pellet Manufacturing Plants: Rs. 9 Lakh per metric ton per hour (MTPH) of manufacturing capacity, with a maximum CFA of Rs. 45 Lakhs per plant.
-
Biomass Cogeneration Projects: Rs. 40 Lakhs per MW of installed capacity, with a maximum CFA of Rs. 5 Crores per project.
Eligible Biomass Resources
The program supports projects that utilize a variety of biomass resources, including:
-
Crop residues like paddy straw, wheat straw, mustard stalks, and cotton stalks.
-
Wood from energy plantations such as prosopis juliflora.
-
Weeds, palm leaves, coconut shells, and husks.
-
Wood waste from industrial operations like saw dust, off cuts, and bark.
-
Agro-based industrial residues such as rice husk and barley husk.
-
Forest residues such as pine needles, branches, and stems of trees.
Terms and Conditions for Participation
-
Bagasse-based cogeneration projects are not supported under this program.
-
Projects that add capacity to existing plants are eligible for CFA only for the enhanced capacity achieved through new machinery.
-
Projects using municipal solid waste, black liquor, slop, press mud, and other processed industrial waste are not eligible.
-
Eligible applicants include companies, partnership firms, proprietorship firms, cooperatives, public sector companies, and government-owned firms.
-
Minimum plant size requirements are set at 1 MTPH for briquette/pellet plants and 0.5 MW for biomass cogeneration plants.
Procedure for Availing CFA
-
Proposal Submission: Proposals must be submitted through the BioURJA Portal before commissioning (with exceptions for specific projects). The last date for submission is December 31, 2025.
-
In-Principle Approval: The Ministry issues an “In-Principle” approval based on project appraisals.
-
Commissioning: Projects must be commissioned within 12 months (briquette/pellet plants) or 24 months (biomass cogeneration plants) from the date of “In-Principle” approval.
-
Performance Inspection: After commissioning, an inspection team verifies the plant’s performance.
-
Release of CFA: CFA is released after successful commissioning and performance inspection.
Performance Requirements
-
Briquette/Pellet Plants: Must operate at an average of 80% of rated capacity over three days and 70% over three months.
-
Biomass Cogeneration Plants: Must operate continuously for 72 hours at 80% of rated capacity and maintain an average of 80% over three months.
Project Monitoring and Implementation
Developers are required to share plant generation data with MNRE through SCADA systems. The program is subject to changes and is dependent on the availability of funds. The Indian Renewable Energy Development Agency Limited (IREDA) is the implementing agency.
Documentation Requirements
Extensive documentation is required for both “in-principle” approval and CFA release, including:
-
Forwarding letters from developers or lead banks.
-
Detailed Project Reports (DPR).
-
Loan sanction letters.
-
Techno-economic feasibility reports.
-
Site photographs.
-
Undertakings.
-
Performance inspection reports.
-
CA certificates, and more.
Conclusion
The Biomass Programme is a crucial step towards achieving India’s renewable energy goals. By harnessing the potential of biomass, this program not only provides clean energy but also contributes to rural development and environmental protection. This initiative is essential for promoting a sustainable and greener future for India.