Guidelines for implementation of Biomass Programme

“Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) Based Cogeneration in Industries in the Country”- Biomass Programme Scheme

Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) Based Cogeneration in Industries in the Country (Up to March 2026)”. It may also be referred as “Biomass Programme”.

the Biomass Programme is to support setting up of Biomass Briquette/Pellet manufacturing plants and to support Biomass (nonbagasse) based cogeneration projects in Industries in the country. The broader objectives of the scheme are to reduce stubble burning by utilizing surplus agricultural residue, to provide additional source of income to farmers through sale of surplus agro residue and to enable better environmental practices and reduce pollution.

Funding Pattern:

Standard CFA pattern: CFA available under the programme is as follows:

Project TypeCFA
Briquette / Pellet Manufacturing plantsRs. 9 Lakh per MTPH (metric ton/hour) manufacturing capacity (maximum CFA of Rs 45 Lakhs per plant)
Biomass (Non-bagasse ) cogeneration projectsRs. 40 Lakhs/MW (on Installed Capacity) (maximum CFA of Rs. 5 Crores per project)

Service Charges To Implementing/ Inspection Agencies:

  1. Implementing agency (IA) shall be provided a service charge @1% of total CFA for examining and processing the CFA applications received in BioURJA portal and forwarding suitable applications to Ministry. Indian Renewable Energy Development Agency Limited (IREDA) shall be the implementing agency. However the Ministry of New & Renewable Energy (MNRE) may change the IA by way of a suitable notification.
  2.   Performance Inspection Agency shall be provided service charge of:

(a) Rs. 25,000 per metric ton per hour (maximum Rs. 1 Lakh per project) towards monitoring of implementation progress, performance inspection and verification of production record and post installation monitoring of Briquette/Pellet manufacturing plants, and

 (b) Rs.1 Lakh/MW (Maximum Rs.5 Lakh per project) as incentive or service charge towards implementation progress, performance inspection and verification of generation record and post installation monitoring of Biomass (non-bagasse) cogeneration projects.

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