Government Scheme

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

Ministry of New and Renewable Energy (MNRE)

Rs. 158 crore (Biomass Programme portion)
Total Budget (Phase-I)
Indian Renewable Energy Development Agency Limited (IREDA)
Implementing Agency
31-12-2025
Last Date of Application

Scheme Overview

The programme supports setting up of biomass briquette/pellet manufacturing plants and biomass (non-bagasse) based cogeneration projects to reduce stubble burning, provide additional income to farmers, and promote clean energy practices.

Scheme Objectives

  • ✓ Reduce stubble burning by utilizing surplus agricultural residue.
  • ✓ Provide additional source of income to farmers through sale of surplus agro residue.
  • ✓ Enable better environmental practices and reduce pollution.

Eligible Sectors

Briquette/Pellet Manufacturing Industrial Biomass Cogeneration (Non-Bagasse)

Eligibility Criteria

Primary Criteria

  • ✓ Companies registered under the Companies Act
  • ✓ Partnership Firms
  • ✓ Proprietorship Firms
  • ✓ Cooperatives
  • ✓ Public Sector Companies and Government-owned Firms
  • ✓ Minimum plant size: 1 MTPH for Briquette/Pellet or 0.5 MW for Cogeneration
  • ✓ Projects must use new machinery

Subsidy (CFA) Pattern

Briquette/Pellet Manufacturing Plants

Rs. 9 Lakh per MTPH (Max Rs. 45 Lakhs per plant)

Biomass (Non-bagasse) Cogeneration Projects

Rs. 40 Lakhs per MW (Max Rs. 5 Crores per project)

Key Benefits

Central Financial Assistance

Direct subsidy for setting up biomass manufacturing or cogeneration infrastructure.

Environmental Impact

Supports pollution reduction and circular economy by repurposing agricultural waste.

Application Process

1

Submission

Ongoing till 31.12.2025

Submit proposal via BioURJA portal before commissioning of the plant.

2

In-Principle Approval

40 days

Review by Implementing Agency and approval by MNRE.

3

Performance Inspection

Within 18 months of commissioning

Physical inspection by authorized agencies (SNA/SSS-NIBE) to verify performance.

4

CFA Disbursement

Post-Inspection

Funds released directly to developer's account or loan account upon successful verification.

Documents Required

Application Documents

Primary Application Form Required

Frequently Asked Questions

Are bagasse-based projects eligible?

No, bagasse-based biomass cogeneration projects are explicitly not supported under this programme.

Can I apply after commissioning the plant?

Generally, proposals must be submitted before commissioning, except for specific projects commissioned between 1.4.2021 and the date of guideline notification.

Success Stories

Sample Beneficiary

MSME

Verified
Investment
As per project
Subsidy Received
As per scheme norms

"Application support improved documentation quality and approval readiness."

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