Archive · 28 Jun 2025
India's Biomass Program Gets a Boost with New Guidelines
The Indian government is updating its rules to make it easier for companies to use things like plants and waste to make energy.
They're cutting down on the amount of paperwork and making it simpler to get approved.
Companies can now use simpler ways to track how well their plants are working.
Also, businesses don't need long-term contracts to sell their energy products.
The government will give money to projects based on how well they work, with more money going to the most efficient ones.
These changes aim to help clean up the environment and promote the use of sustainable energy sources.
MNRE released revised guidelines for the biomass program.
The revisions aim to boost bio-energy, ease of doing business, and accelerate adoption of biomass technologies.
Processes are simplified by reducing paperwork and easing approval requirements.
IoT-based monitoring solutions replace expensive systems for digital monitoring.
Flexible selling of biomass products is allowed without long-term contracts.
- Who
- The Ministry of New and Renewable Energy (MNRE).
- What
- MNRE revised guidelines for the biomass programme.
- When
- The revisions are applicable for FY 2021–22 to 2025–26.
- Where
- India
- Why
- To promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies.
Developers
Government
Contract Flexibility
Developers
Developers previously needed to secure long-term contracts to start projects. This made it hard to adjust to changing market dynamics
Government
The updated guidelines removed the two-year contract requirement, allowing more flexibility and market responsiveness for the developers.
Financial Assistance
Developers
Previously, developers had to wait until the entire waste-to-energy project attained 80% generation to receive support.
Government
With revised guidelines, the Central Financial Assistance (CFA) release has been improved to be performance based with provision for pro-rata based disbursement if a plant doesn't achieve the target.
- Ministry
- MNRE
- Program
- Biomass Programme
- Phase
- I
- Period
- FY 2021–22 to 2025–26
- Focus
- Cleaner Energy and Ease of Business
- Monitoring
- IoT-based
- Subsidy
- Performance-based