Biomass Scheme

The Biomass Scheme, spearheaded by the Ministry of New and Renewable Energy (MNRE), Government of India, is a initiative designed to promote the manufacturing of biomass briquettes and pellets, as well as the adoption of biomass (non-bagasse) based cogeneration in industries. This scheme is a vital part of India’s commitment to sustainable energy, waste management, and reduction of carbon emissions.

Objectives

  • Promote Renewable Energy: Encourage the use of biomass as a clean, renewable source for energy generation.
  • Support Industry: Facilitate the setup of biomass manufacturing units and cogeneration projects.
  • Waste-to-Energy: Transform agricultural, urban, and industrial residues into valuable energy resources.
  • Sustainable Development: Foster eco-friendly industrial growth and rural employment.

Application Process

  • 1 Online Submission: Applications are accepted exclusively through the BioURJA Portal before plant commissioning.
  • 2 Approval Process:
  • For projects with bank loans: Approval with MNRE and financial concurrence.
  • For self-funded projects: Scrutiny by the implementing agency and the Project Appraisal Committee.
  • 3 Required Documents:
  • Business registration certificates
  • Financial statements
  • Detailed project report
  • Compliance and statutory documents

Central Financial Assistance (CFA)

  • Briquette/Pellet Manufacturing Plants:
  • ₹9 lakh per MTPH (Metric Ton Per Hour) manufacturing capacity
  • Maximum CFA: ₹45 lakh per plant
  • Biomass (Non-bagasse) Cogeneration Projects:
  • ₹40 lakh per MW (on installed capacity)
  • Maximum CFA: ₹5 crore per project

Eligible Projects

  • Briquette/Pellet Manufacturing Plants:
  • Briquette/Pellet plants (minimum 1 MTPH capacity)
  • Biomass (non-bagasse) cogeneration projects (minimum 0.5 MW)
  • Waste-to-energy setups using agricultural, urban, or industrial residues

Who Can Apply?

  • Industries
  • Organizations promoting sustainable waste management
  • Indirectly, farmers and rural communities (as suppliers of biomass)

Technology & Monitoring

  • Only new equipment/machinery is eligible
  • Mandatory SCADA/remote monitoring system for project tracking

Project Timeline

  • Briquette/Pellet Plants: 12 months from “In-Principle” approval
  • Cogeneration Plants: 24 months from “In-Principle” approval
Watch Our Detailed Video on Biomass Scheme

Avail Subsidy Summary Report On Your Project

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FREQUENTLY ASKED QUESTIONS

Got any questions?

Applications must be submitted online through the BioURJA Portal (https://biourja.mnre.gov.in) before the commissioning of the plant.

Briquette/Pellet Manufacturing Plants, 12 months from “In-Principle” approval. Biomass Cogeneration Projects, 24 months from “In-Principle” approval.

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