Government Unveils New Guidelines to Boost Biomass Energy Adoption
New Biomass Programme Guidelines Introduced
New Delhi, June 28: The government has announced updated guidelines aimed at promoting cleaner energy solutions, enhancing the ease of doing business, and accelerating the adoption of biomass technologies nationwide. These revised norms fall under Phase-I of the National Bioenergy Programme, which is set to be effective from FY 2021–22 to 2025–26.
The Ministry of New and Renewable Energy (MNRE) has streamlined various processes, reducing paperwork and simplifying approval requirements, which is expected to benefit the industry, particularly micro, small, and medium enterprises (MSMEs), by boosting production capabilities.
A significant aspect of the revisions is the integration of technology, allowing for the use of IoT-based monitoring solutions or quarterly data submissions instead of relying on costly systems like SCADA. This initiative aims to enhance digital monitoring and accountability, especially for smaller operators, according to the ministry.
The guidelines also significantly reduce documentation requirements. Developers of briquette and pellet manufacturing facilities will no longer need to submit numerous documents related to clearance processes.
According to the ministry, “This change will save time and promote ease of doing business.”
To improve operational flexibility, the previous requirement for a two-year sales contract for briquettes or pellets has been replaced with a general sales agreement. This adjustment allows project developers to adapt more readily to market fluctuations without being tied down by long-term contracts.
The updated guidelines permit flexible selling of biomass products, eliminating the necessity for long-term contracts to initiate operations.
Moreover, the subsidy disbursement mechanism under the Central Financial Assistance (CFA) program has been revised to be performance-based and transparent. Projects operating efficiently at over 80 percent capacity will receive full financial assistance, while those below this threshold will receive support on a pro-rata basis.
The performance inspection period has also been simplified. Previously, inspections had to occur within 18 months of commissioning; now, they can take place within 18 months from either the commissioning date or the date of in-principle approval, whichever is later.
To address the operational challenges faced by developers, the Secretary of MNRE may extend the inspection period as needed.
During inspections, performance reports were previously based on operations at an average of 80 percent of rated capacity over three consecutive days, averaging 16 hours per day. This has now been reduced to just 10 hours, as the inspection process primarily aims to verify claimed and operational capacities, making a 10-hour continuous operation sufficient for this purpose, according to the ministry.
In light of the urgent need to combat air pollution, particularly from stubble burning in northern India, the new guidelines allow biomass pellet producers in Delhi, Punjab, Haryana, and the NCR districts of Rajasthan and Uttar Pradesh to select the most advantageous support scheme, either from MNRE or the Central Pollution Control Board (CPCB).
These modifications align with efforts to improve stubble management and contribute to India's overarching goal of achieving net-zero emissions by 2070.