MNRE adds Rs 140 crore to India’s bioenergy program

The Ministry of New and Renewable Energy (MNRE) has approved an additional budget of Rs 140 crore for Phase-I of the National Bioenergy Programme (NBP), extending financial support for bioenergy projects during FY 2021–22 to 2025–26. With this, the total outlay for Phase-I has risen to Rs 998 crore, underscoring the government’s focus on clean and sustainable energy.

The NBP, overseen by MNRE’s Bio-Energy Division, is implemented through three sub-schemes – the Waste-to-Energy Programme, the Biomass Programme and the Biogas Programme. Of the supplementary funds, Rs 37.5 crore will go towards Waste-to-Energy, Rs 52.5 crore for Biomass, and Rs 50 crore for Biogas projects. The ministry has allowed flexibility in budget utilization across these components, depending on project needs.

In June 2025, MNRE revised the Biomass Programme guidelines to simplify procedures, reduce documentation, and clarify subsidy norms, with the aim of accelerating biomass-based energy projects. A key reform relates to performance inspections of briquette and pellet units. Earlier, plants had to demonstrate extended operational benchmarks over months; now, they need to run at 80% capacity for just 10 continuous hours to qualify for full Central Financial Assistance (CFA).

If the output falls short, the CFA will be adjusted proportionately. For instance, a plant achieving 73% capacity utilization will receive 91.25% of the subsidy, while units below 50% will not qualify for assistance.

Similarly, revised Waste-to-Energy guidelines now link financial aid to project performance. CFA will be disbursed in two stages: 50% upon receiving a Consent to Operate from the State Pollution Control Board (against a bank guarantee), and the balance once the plant achieves 80% of its rated capacity or the maximum eligible threshold.

Through these reforms, MNRE claims to streamline processes, boost efficiency and accelerate India’s bioenergy transition.