Bioenergy & Biorefinery

Central Government Policy

Co-Firing


Policy orders, notifications, and advisory documents issued by various ministries of Union Govt., State Govt., Statutory Bodies and Authorities forming the national mandate for biomass co-firing across all thermal power plants in India.

ACTIVE POLICY DOCUMENTS

Comprehensive Policy – Biomass & MSW Co-firing in Coal – based TPPs
Ministry of Power . Nov 2025

National Mandate for Biomass & MSW Co-firing

This is the primary governing document that supersedes all previous co-firing policies. It mandates the use of biomass pellets and, for the first time, integrates torrefied charcoal from Municipal Solid Waste (MSW) into the national energy mix.

Snapshot –

– 7% (5% Biomass + 2% Biomass/MSW) mandatory blending for NCR power plants from FY 2025-26. (5% Biomass/MSW for rest of India)
– 50% minimum requirement of rice paddy straw for pellets used in NCR-based plants

Revised rate of CFA for Biomass Pellet Manufacturing

Ministry of New and Renewable Energy . Jul 2024

Updated Central Financial Assistance (CFA) for Pellet Plants.

Official memorandum revising subsidy rates for pellet manufacturing units under the National Bioenergy Programme to accelerate production capacity

Snapshot

– ₹42.0 Lakhs/MTPH (Max ₹210 Lakhs) for Torrefied Pellet plants
– ₹21.0 Lakhs/MTPH (Max ₹105 Lakhs) for Non-Torrefied Pellet plants
– ₹9.0 Lakhs/MTPH (Max ₹45 Lakhs) for Briquette manufacturing plant

One-Time Financial Support for Stubble-Based Pelletisation

MoEFCC (CPCB) . Nov 2022

Guidelines for grant of one-time financial support under Environment Protection Charge (EPC) Funds for establishment of pelletisation and torrefaction plants to promote utilisation of paddy straw (applicable for NCR)

Snapshot

– Total funding = ₹50 Cr (₹40 Cr for pelletisation plants, ₹10 Cr for torrefaction plants)
– Torrefied Plant – ₹1.4 Cr max fin. support per proposal
– Non-Torrefied Plant – ₹70 Lacs max fin. support per proposal
– 40% of the capital cost (excl. civil and land cost)
– 20% max limit for other biomass feedstock; remaining 80% must be paddy straw.

ARCHIVE

Modified Revised Biomass Policy

Ministry of Power . Jun 2023 . SUPERSEDED

CFBC Boilder Applicability Clarification

Ministry of Power . Apr 2022 . SUPERSEDED

Revised Policy for Biomass Utilisation in Coal-based Power Plants

Ministry of Power . Oct 2021 . SUPERSEDED

Addendum to Revised Policy for Biomass Utilization - Oct 2021

Ministry of Power . May 2023 . SUPERSEDED

Biomass Utilization - CEA Advisory

Central Electricity Authority . Nov 2017 . SUPERSEDED

CBG


Ethanol


Biomass Pelletisation: The Strategic Choice


State Government Policy

UTTAR PRADESH


UP Bio Energy Policy 2022
UPNEDA . 2022
Facilities such as Capital Subsidy, State GST reimbursement, Stamp Duty exemption etc. are offered for promoting Bio-Energy enterprises in the state.

PUNJAB


(Government of Punjab) New and Renewable Sources of Energy (NRSE) Policy – 2012
PEDA . 2012
Supporting private sector investment in NRSE projects including biomass co-generation

HARYANA


Haryana Bio- Energy Policy
HAREDA . 2018
Haryana government provides incentives to promote and develop biomass based projects to harness clean power and safeguard the environment.

BIHAR


Bihar Policy for Promotion of New & Renewable Energy Sources 2025
Aims to accelerate clean energy adoption by offering incentives like single-window clearance, SGST reimbursement, land fee waiver with one of main focus areas being biomass based energy.