MNRE Revises Biomass Guidelines to Boost Bio Energy

Syllabus: GS3/ Economy

Context

• 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.

What is Biomass?

• Biomass refers to organic material derived from plants and animals, and it includes: forestry waste, residue from agricultural operation, processed waste from industry, municipal/urban solid waste. 
• Annual Biomass production in the Country is around 750 MMT, out of which 228 MMT is surplus Biomass. 

Key Features of the Revised Guidelines

• Simplified Procedures: Reduced paperwork and approval hurdles, especially benefiting MSMEs.
  • Eased documentation requirements for briquette/pellet manufacturing units.
• Technological Integration: Promotes IoT-based monitoring or quarterly data submission, replacing costly SCADA systems.
  • Ensures digital accountability while reducing operational costs.
• Market Flexibility: Replaces the earlier two-year contract requirement with a general sale agreement, allowing businesses to adjust to market demand dynamically.
• Performance-Based Subsidies: Under Central Financial Assistance (CFA), Projects operating at ≥80% efficiency get full subsidy.
  • Projects below 80% get subsidy on a pro-rata basis.
• Rationalized Inspection Criteria: Performance inspection can now be done within 18 months of either commissioning or In-principle approval.
  • Reduced operational requirement from three days (16 hrs/day) to one 10-hour stretch to verify performance.
• Regional Coordination: Biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan & Uttar Pradesh can choose between MNRE or CPCB support schemes, depending on benefits.

Source: PIB