Biomass is available in the form of forestry waste, residue from agricultural operation, processed waste from industry, municipal/urban solid waste. Annual Biomass production in the Country is around 750 MMT, out of which 228 MMT is surplus Biomass. Biomass can be utilized in various forms like production of Heat & Energy, Briquettes/Pellets, etc.

The Ministry of New and Renewable Energy notified the National Bioenergy Programme (NBP) for the period of FY 2021-22 to 2025-26 on 02.11.2022. One of the components under the NBP is the Scheme to ‘Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) based Cogeneration in Industries in the Country. Under the Scheme, the Central Financial Assistance (CFA) for Briquette/Pellet manufacturing plant was Rs. 9.0 lakhs/MTPH with maximum Rs. 45.0 lakhs per project. However, the Ministry of New and Renewable Energy has now revised the rate of CFA w.e.f. 16.07.2024 for Pellet manufacturing plants with incorporation of Torrefied Pellet manufacturing plant component. The CFA for Non-Torrefied Pellet manufacturing plant is Rs. 21.0 lakhs/MTPH production capacity with maximum Rs. 105 lakhs per project and for Torrefied Pellet manufacturing plant, it is Rs. 42.0 lakhs/MTPH production capacity with a Maximum Rs. 210 lakhs per project or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower in case of both the components.

The revision of CFA will enhance the utilization of Biomass in the Country including utilization of Paddy Straw in States like Punajb, Haryana and Uttar Pradesh and would contribute to Air Quality Management by avoiding stubble burning.

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