Looking to set up a Napier Grass-based pellet plant in Gujarat or Maharashtra?
You’re in luck—both states support agricultural biomass projects with subsidies and incentives.
Central aid is available via MNRE’s Biomass Programme and BioURJA portal, alongside state-level perks.
Here’s a practical eligibility checklist to help you get started.

📋 Eligibility Checklist for Napier Grass Pellet Plant Support

Legal & Business Status: • Registered company, LLP, cooperative, or individual entrepreneur (for MSME schemes) • GST registration and PAN required
Project Specifications: • Plant capacity: minimum 1 TPH (ton per hour) recommended • Use of non-bagasse biomass (Napier Grass is accepted)
Land & Infrastructure: • Clear land title or lease agreement (preferably in GIDC or agri-industrial zone) • Pollution Control Board (PCB) NOC required
Technical Documentation: • Detailed Project Report (DPR) with cost, layout, raw material plan • MNRE “In-Principle” Approval via https://biourja.mnre.gov.in
Financial Eligibility: • MSME UDYAM registration (for collateral-free loan via CGTMSE) • Tie-up with banks like SIDBI, NABARD, IREDA, or nationalized banks • Promoter contribution (typically 20–30%) of total project cost
State-Specific Criteria: • Gujarat: Preference for agri-based biomass, availability of water & grid connectivity • Maharashtra: Biomass sourcing agreement or cluster model recommended • Compliance with co-firing or energy feed-in guidelines (optional but beneficial)
Timelines & Compliance: • Commissioning must be completed within 12 months of sanction • Periodic compliance with subsidy utilization and audit norms

🔹 Central Scheme: MNRE Biomass Programme (Revised as per OM dated 16 July 2024)

• Non-Torrefied Pellet Plant: ₹21.0 Lakhs/MTPH or 30% of capital cost of 1 MTPH (whichever is lower), max ₹105 Lakhs per project

• Torrefied Pellet Plant: ₹42.0 Lakhs/MTPH or 30% of capital cost of 1 MTPH (whichever is lower), max ₹210 Lakhs per project

• Petitions accepted via BioURJA portal: https://biourja.mnre.gov.in

• Applicable to non-bagasse/co-gen projects; commissioning window: 12 months post “In-Principle” approval

🔹 State-Level Incentives

Gujarat • Encourages biomass (incl. Napier grass) via Agri biomass policy • Capital subsidies: 20–40% project cost (max caps vary), aligned with central CFA • Land perks: preferential leases via GIDC, stamp duty waivers • Electricity waivers: exemption from electricity duty for captive use
Maharashtra • Similar 20–40% capital subsidy on project cost • Co-firing mandate: State enforces 5% biomass in thermal plants (rising to 7% from FY 2025-26) • Off-take support: Collectives can supply power/pellets to state’s energy agencies/power utilities

🔹 Financial & Tax Relief • Tax benefits: Central incentives include ITC up to 30% for biomass pellet projects • Depreciation & carbon credits: Additional financial relief at central level • Low interest loans: Via IREDA, SIDBI, NABARD; collateral free loans (≤₹2 crore) under CGTMSE for MSMEs

✅ Napier Grass Potential • High yield (150–200 t/acre/year); GCV ~3,800–4,200 kcal/kg • Proven hybrid use in Gujarat for both CBG and pellet plants (e.g., Dhrangadhra CBG plant)

📋 Step-by-Step Roadmap

Project planning: DPR, land lease, raw material plan, MNRE “In-Principle” via BioURJA portal
Apply central CFA & state subsidy: Through MNRE + Gujarat/Maharashtra nodal agencies
Loan recommendation: Approach IREDA/SIDBI/NABARD/PSL banks/CGTMSE
Site permitting: Acquire pollution clearance & HT electricity
Commissioning & claim: Within 12 months to become eligible; link state offtake agreements

🏡 Government Websites

• MNRE Biomass Programme: https://mnre.gov.in/en/biomass

• BioURJA Portal: https://biourja.mnre.gov.in

• Gujarat Agriculture & Farmers Welfare Dept.: https://agri.gujarat.gov.in

⚠️ Disclaimer Policies and subsidies are subject to change. Always verify through respective nodal agencies and official websites before project finalization.