Guidelines revised: Centre eases rules under Biomass Programme to boost clean energy; MSMEs, stubble zones to gain
The Centre has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme, aiming to simplify processes, promote clean energy, and improve ease of doing business, especially for MSMEs, according to a statement by the ministry of new and renewable energy (MNRE).
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"The ministry of new and renewable energy (MNRE) has issued revised guidelines for the Biomass Programme under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021-22 to 2025-26", the statement said.
The ministry stated that the amendments are geared toward accelerating the adoption of biomass technologies across India, aligning with the country's commitment to reach net-zero emissions by 2070 and tackle air pollution caused by
.
As reported by ANI, a key feature of the revised guidelines is the integration of affordable technology for project monitoring. Instead of requiring high-cost SCADA systems, developers can now use IoT-based monitoring solutions or submit quarterly data, offering a cost-effective route, especially beneficial for small players.
Developers of briquette and pellet manufacturing plants will also benefit from eased documentation norms.
"Earlier, clearance-related documents were mandatory, but those have now been relaxed, saving significant time for businesses," the MNRE said.
In another major move to enhance flexibility, the requirement for a two-year sales contract has been replaced with a general sales agreement. This change allows developers to respond more dynamically to market shifts without being locked into long-term contracts.
The subsidy model under the Central Financial Assistance (CFA) component has also been revamped.
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Projects running at or above 80% of their rated capacity will receive full support, while those below the threshold will get assistance on a pro-rata basis.
However, plants operating below 50% capacity will not be eligible for any CFA.
The performance inspection window, previously limited to 18 months from the date of commissioning, can now begin from either the commissioning date or the date of In-principle Approval—whichever is later.
To address on-ground challenges, the secretary of MNRE can also extend this window if necessary.
Inspection criteria have been further relaxed. Earlier, plants had to prove consistent operation over three days at an average of 16 hours per day. Now, the requirement has been reduced to a single 10-hour continuous operation to verify capacity claims.
Recognising regional challenges, especially air pollution from crop residue burning, the revised guidelines permit biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh to choose between support schemes offered by MNRE and the Central Pollution Control Board (CPCB), depending on what suits them best.
According to ANI, these changes aim to strengthen the sector's capacity to implement projects quickly, attract more participation, and ensure timely delivery of financial support.
Overall, the revised norms aim to streamline the biomass energy ecosystem with a mix of regulatory relief, technical flexibility, and financial incentives, thereby promoting practical clean energy solutions while addressing key environmental concerns.
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