Process to Register a Biomass Pellet Plant under MNRE (India)
DESCRIPTION Here’s a crisp, step-by-step guide to getting your biomass pellet (or torrefied pellet) plant registered for Central Financial Assistance (CFA) under MNRE’s National Bioenergy Programme (Biomass Programme), plus linked portals, current CFA rates, co-firing obligations that create demand, and state-level incentives you can stack. Ministry of New and Renewable Energy
DETAILED SUMMARY (How to apply + what to prepare)
A) Check your eligibility & choose the right bucket MNRE’s Biomass Programme (valid till 31-Mar-2026) supports:
Briquette/pellet plants (non-torrefied)
Torrefied pellet plants
Biomass (non-bagasse) cogeneration in industries Official programme & portal: BioUrja (single-window
B) Know the current CFA (subsidy) rates (MNRE) (16 July 2024 Office Memorandum—effective for applications received after issue):
Briquette manufacturing plant: ₹9.0 lakh per MTPH; max ₹45 lakh/project
Non-torrefied pellet plant:₹21.0 lakh per MTPHor30% of plant & machinery cost of a 1-MTPH line (whichever is lower); max ₹105 lakh/project
Torrefied pellet plant:₹42.0 lakh per MTPHor30% of plant & machinery cost of a 1-MTPH line (whichever is lower); max ₹210 lakh/project.
C) Create your BioUrja account & file for In-Principle Approval (IPA)
Register on BioUrja → choose “Biomass Programme → Pellet/Briquette Unit”.
Upload proposal before commissioning to obtain IPA. Tracking happens in-portal. biourja.mnre.gov.in
D) Documents you’ll typically need (indicative)
Promoter KYC, company registration, Udyam/MSME (if applicable)
Technical proposal & rated capacity (MTPH), process flow, machinery quotations (new equipment only), plant layout
Bank sanction (if debt financed) / CA-certified means of finance
Off-take plan (e.g., MoUs with TPPs/industries) is strongly recommended given co-firing demand. (The BioUrja portal lists “Steps to avail CFA”.) biourja.mnre.gov.in
E) Implementation → Commissioning → Inspection → CFA release
After IPA, commission within the programme timelines; request inspection (SNA/SSS-NIBE as per MNRE).
Submit commissioning docs (test runs, invoices, UCs, CA certificates).
CFA is released post-verification as per MNRE guidelines.
F) Parallel central support that can stack (where eligible)
CPCB one-time financial support (EPC funds) for paddy-straw pelletisation/torrefaction (Delhi-NCR/Punjab/Haryana/UP-NCR/Rajasthan-NCR catchments):
Non-torrefied: up to ₹14 lakh per TPH, cap ₹70 lakh/proposal
Torrefied: up to ₹28 lakh per TPH, cap ₹1.4 crore/proposal (Guidelines & addenda; several official CPCB references summarising amounts.)
G) Demand-side tailwind (Ministry of Power)
Mandatory co-firing obligation in coal TPPs:5% from FY 2024-25, rising to 7% from FY 2025-26 → creates sustained pellet demand.
H) GST classification (sale of pellets)
Biomass/wood pellets fall under HSN 4401 at 5% GST (Schedule I).
Haryana (Bio-energy Policy, 2018; HAREDA): Conducive approvals/tariff mechanisms; state-level incentives and tax relaxations as per Industrial Policy; facilitation by HAREDA. (Use with MNRE/CPCB.) hareda.gov.in
Maharashtra (MEDA scheme): State subsidy for briquette/pellet machinery: 20% of machine cost or ₹4 lakh (whichever lower); many MSMEs have availed under MEDA. mahaurja.com
Punjab (PEDA developer support): Active facilitation for biomass power & paddy-straw utilisation (including proposed VGF for straw-based biomass power); dedicated nodal support to speed up RE projects. (Stack with MNRE/CPCB; pellets see strong local demand via TPPs & boilers.) peda.gov.in
⚠️ Exact state-wise capital/interest/tax incentives vary by current notifications and your MSME category/industrial policy. Always check the latest SNA circulars before locking financials. hareda.gov.in
QUICK “CHECKLIST” TO GET STARTED
Incorporation & land ready → Consent-to-Establish (SPCB) route clear.
Freeze capacity (MTPH) and equipment list (new machines).
Prepare DPR/tech note + off-take plan (e.g., TPP/boiler clients).
Build → Commission → request inspection (SNA/SSS-NIBE) → CFA release.
If eligible geography: apply CPCB one-time support (pellet/torrefaction). cpcb.nic.in
DISCLAIMER
Policies, CFA rates, eligibility geographies and state incentives change by notification. Use the official MNRE Office Memorandum (16-Jul-2024) for CFA rates and your State Nodal Agency for local subsidies. GST rates should be verified against the latest GST Council/CBIC notifications before invoicing. This note is informational and not legal/financial advice.
