MNRE revises norms for biomass programme to boost clean energy in India

Business Standard

4 hours ago

The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the biomass programme to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.
The norms are revised under Phase-I of National Bioenergy Programme, applicable for the period FY 202122 to 202526.
These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across the country, a ministry statement said.
Under the new framework, the ministry has simplified several processes, such as cutting down on paperwork and easing approval requirements, which will enable the industry, especially MSMEs to enhance their production.
These changes align with improvement of stubble management and India's broader goal of reaching net-zero emissions by 2070.
One of the major highlights of the revision is technological integration by enabling the use of IoT-based monitoring solutions or quarterly data submissions instead of expensive and high-tech systems like SCADA.
This promotes digital monitoring and accountability, especially for smaller business operators. The guidelines also encourage significant simplification of documentation. Developers of briquette and pellet manufacturing plants will no longer be required to submit a number of documents related to clearance matters.
This change will save time, and promote ease of doing business. In a move to enhance operational flexibility, the earlier requirement for a two-year briquette or pellet sale contract has been replaced with a general sale agreement.
This change will allow project developers to respond more dynamically to market conditions without being constrained by long-term contracts, it stated.
The amended guidelines allow flexible selling of biomass products, which means businesses no longer need long-term contracts to get started.
Furthermore, the subsidy disbursement mechanism under the Central Financial Assistance (CFA) component has been made performance-based and transparent.
Projects that run efficiently, above 80 per cent will receive full financial assistance, while below 80 per cent will receive on pro-rata basis. The performance inspection period has been simplified.
Earlier, it had to be done within a period of 18 months from the date of commissioning, but now, it can be carried out within 18 months either from the commissioning date or from the date of in-principle approval, whichever is later.
Additionally, to cater on-ground operational challenges of developers, Secretary, MNRE may extend the time period. During inspection, performance report was made on the basis of operation plant at an average of 80 per cent of rated capacity measured over a period of three consecutive days, taking average to 16 hours per day.
However, now it has been reduced to just 10 hours as the inspection process primarily aims to verify the claimed and operational capacities and inspection for 10 hours continuous operation would suffice this purpose.
Recognizing the urgent need to address air pollution, especially from stubble burning in northern India, the new guidelines include a provision allowing biomass pellet producers in Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh to choose the most beneficial support scheme, either from MNRE or CPCB.
These revisions will not only support the smooth implementation of the biomass programme and timely delivery of approved financial support to commissioned plants, but also encourage the sector to establish more biomass-based plants, it stated.
This would ultimately help in addressing the menace of crop residue burning and ensure sustainable management of agricultural waste.
In another statement MNRE has issued revised guidelines for the waste-to-energy programme under the National Bioenergy Programme.
These revisions aim to foster a more efficient, transparent, and performance-oriented ecosystem for biowaste-to-energy deployment in India.
By simplifying procedures, expediting financial assistance, and aligning support with plant performance, the updated guidelines are designed to significantly enhance the ease of doing business for private as well as public sectors.
Under the new framework, the ministry has simplified several processes, such as cutting down on paperwork and easing approval requirements, which will enable the industry especially MSMEs to enhance their production of CBG, biogas & power.
A key highlight of the revised guidelines is the improved system for releasing Central Financial Assistance (CFA).
Considering the challenges faced by the developers to achieve 80 per cent generation, flexible provisions have been made in the scheme for release of CFA based on plant performance.
Previously, companies had to wait until the entire waste-to-energy project attains 80 per cent generation to receive support. Moreover, as per the revised guidelines, there is a provision to release the CFA in two stages.
Based on performance of the projects, 50 per cent of total CFA will be released after obtaining the Consent to Operate certificate from State Pollution Control Board, against the bank guarantee, while the balance CFA would be released after achieving the 80 per cent of the rated capacity or the maximum CFA eligible capacity, whichever is lesser.
Even if a plant does not achieve 80 per cent generation for above both conditions during performance inspection, provision is made for pro-rata based disbursement based on the percentage output. However, no CFA will be given if the PLF (plant load factor or capacity utilisation) is less than 50 per cent.
The inspection process has also been refined to ensure greater credibility, transparency and accountability.
The revised norms mandate joint inspections led by National Institute of Bio-Energy along with any one agency among respective State Nodal Agencies, Biogas Technology Development Centers.
For developers not opting for advance CFA, only a single performance inspection is required, reducing procedural delays.