Biomass Programme

    Scheme to Support Manufacturing of Briquettes & Pellets and Promotion of Biomass (non-bagasse) based cogeneration in Industries


    The objective of the Biomass Programme is to support setting up of Biomass Briquette/Pellet manufacturing plants and to support Biomass (non-bagasse) based cogeneration projects in Industries in the country.


    FY 2021-22 upto FY 2025-26

    Salient Features

    • The programme provides Central Financial Assistance (CFA) to project developers and service charges to implementing agency and inspection agencies in respect of setting up of Briquette / Pellet manufacturing plants and Biomass (non- bagasse) cogeneration projects in industries.
    • Financial assistance available under the programme is as follows:
      1. Briquette/ Pellet Manufacturing plants: Rs. 9 Lakh per MTPH (metric ton/hour) manufacturing capacity (maximum CFA of Rs 45 Lakhs per plant)
      2. Biomass (Non-bagasse ) cogeneration projects: Rs. 40 Lakhs/MW (on Installed Capacity) (maximum CFA of Rs. 5 Crores per project)
    • Applications to be accepted through online portal only.
    • Under this programme, self-funded projects will also be eligible for Central Financial Assistance.
    • SCADA System/remote monitoring system has been mandated for Biomass projects.
    • Plants installed with new equipment/machinery only shall be eligible for CFA under this programme.
    • The performance inspection agencies for Biomass projects are:
      1. For Briquette/Pellet Manufacturing Plants:
        1. Concerned State Nodal Agencies for Renewable Energy (SNAs); or
        2. Sardar Swaran Singh National Institute of Bio-Energy (SSS-NIBE)
      2. For Biomass (non-bagasse) cogeneration projects: Concerned State Nodal Agency (SNA) and Sardar Swaran Singh National Institute of BioEnergy (SSS-NIBE).

    How to avail the financial assistance

    • The proposal for grant of “In-Principle” approval of CFA will be accepted through BioURJA Portal ( before commissioning of the Biomass plant.
    • For projects with debt/loans from FIs/Banks, the Ministry shall issue an “In-Principle” approval with the concurrence of IFD and approval of Secretary, MNRE.
    • For projects without debt/loan or projects the Implementation Agency shall examine and put up the applications to Project Appraisal Committee (PAC) following which the Ministry shall issue an “In-Principle” approval with the concurrence of IFD and approval of Secretary, MNRE.
    • The time period for commissioning is 12 months for Briquette / Pellet Manufacturing plants and 24 months for Biomass (non-bagasse) cogeneration plants from the date of “In-Principle” approval.

    Whom to contact

    (Sh. Vikram Dhaka, Biomass Division)

    Relevant Documents

    Administrative approval for implementation of Biomass Programme under the Umbrella scheme of National Bioenergy Programme for duration of FY 2021-22 to 2025-26 (Phase-I) (3 mb, PDF)