The rate of central financial assistance (CFA) for biomass pellet manufacturing units under biomass programme of National Bioenergy Programme (NBP) has been revised. The Ministry of New and Renewable Energy had announced the NBP for the period spanning from fiscal year 2021-22 to 2025-26. One aspect of the NBP is the initiative to support promotion of manufacturing of briquettes and pellets and biomass (non-bagasse) based cogeneration in industries across the country.
Initially, the CFA for briquette/pellet manufacturing plants was set at Rs 900,000 per Metric Tonne Per Hour (MTPH) with a maximum of Rs 4.5 million per project. Subsequently, the MNRE revised the CFA rates effective from July 16, 2024, specifically for pellet manufacturing plants, introducing a component for torrefied pellet manufacturing plants. For non-torrefied pellet manufacturing plants, the CFA stands at Rs 2.1 million/MTPH production capacity with a maximum of Rs 10.5 million per project. In the case of torrefied pellet manufacturing plants, the CFA is set at Rs 4.2 million/MTPH production capacity with a maximum of Rs 21 million per project or 30 per cent of the capital cost considered for plant and machinery of a 1 MTPH plant, whichever is the lower amount for both components.
The revision of CFA will enhance the utilisation of biomass including utilisation of paddy straw in Punjab, Haryana and Uttar Pradesh and help avoid stubble burning.
Biomass is forestry waste, residue from agricultural operation, processed waste from industry, municipal/urban solid waste. There is 228 MMT of surplus biomass and it can be utilised in production of heat and energy, briquettes/pellets, etc.
