The Ministry of New and Renewable Energy (MNRE) has revised its financial assistance program for biomass pellet manufacturing units. This initiative aims to promote the use of cleaner bioenergy sources.
Program Details
The program falls under the National Bioenergy Programme (NBP) launched in November 2022. It provides Central Financial Assistance (CFA) to briquette and pellet manufacturing plants.
Revised Rates
Briquette manufacturing plants continue to receive a CFA of Rs. 9 lakh per Metric Ton per Hour (MTPH) capacity, with a maximum of Rs. 45 lakh per project.
Non-torrefied pellet manufacturing plants will now receive a significantly higher CFA of Rs. 21 lakh per MTPH or 30% of the capital cost (whichever is lower), with a maximum of Rs. 1.05 crore per project.
Torrefied pellet manufacturing plants will receive the highest CFA of Rs. 42 lakh per MTPH or 30% of the capital cost (whichever is lower), with a maximum of Rs. 2.1 crore per project. Torrefied pellets are processed to improve their energy density and storage stability.
Applicability
- The revised rates apply to new project applications submitted to the Ministry through the Biourja Portal under Phase-I of the NBP’s Biomass component.
- All other program guidelines remain unchanged.
By providing greater financial assistance, the government aims to accelerate the adoption of biomass pellet production technologies, contributing to a more sustainable energy future.
