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MNRE in talks with Department of Expenditure to expedite National Bioenergy Programme assistance

MNRE in talks with Department of Expenditure to expedite National Bioenergy Programme assistance

Time of India09-05-2025

New Delhi: The Ministry of New and
Renewable Energy
(
MNRE
) is in talks with the
Department of Expenditure
(DoE) under the Finance Ministry to expedite the flow of assistance to the tune of Rs 857 crore for the second phase of the
National Bioenergy Programme
(NBP), MNRE secretary Santosh Kumar Sarangi said today.
NBP was launched in November 2022 with an aim to promote waste to energy, biomass, and
biogas
projects, with a budgetary allocation of Rs 1,700 crore through which the ministry has taken various initiatives to promote biogas and the associated value addition ecosystem in the country.
The scheme has supported many briquetting and palletisation plants apart from projects which were processing and making Compressed Bio Gas. It has provided support for Briquette and pellet projects of around 400 tonne capacity.
Sarangi said the government was earlier unable to release the required financial commitments because of certain issues in guidelines but the issues have been discussed with the Department of Expenditure and MNRE has found the mechanisms for supporting the industries which have already received clearance.
"In Phase I of the project, we got Rs 858 crore, and in phase II we are likely to get another Rs 857 crore for this. We are also in the process of expediting phase 2 in consultation with the Department of Expenditure," Sarangi said, speaking at the bbb Summit here.
He also said that the government is ensuring that biowaste material -- including agricultural waste, animal dung, sugarcane bagasse and Municipal Solid Waste -- is being converted for more productive uses like production f Green Hydrogen, Methanol or Syngas.
"We have also set up a Bio-Urja portal through which applications can be filed in transparent and streamlined manner. That is expected to be a one stop solution for the applicants who are applying for different projects under MNRE. There are also many ways in which the government has adopted a whole-of-Govt approach covering schemes administered by different ministries," he said.
Sarangi said MNRE is also advancing the "Biomass-to-Green Hydrogen" initiative under the National Green Hydrogen Mission and seven R&D projects have been supported to see the feasibility of generation of green hydrogen using the biomass route.
The biofuel industry is relatively nascent and small as against solar or wind. To that extent, there are many potential barriers like evolution of feedstock logistics, financing gaps, regulatory coordination required etc. This needs to be addressed.

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