MNRE eases guidelines, fast-tracks approvals for waste-to-energy projects

In a move to boost clean energy and improve waste management, the Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for its Waste-to-Energy (WtE) Programme under the National Bioenergy Programme. The new framework aims to simplify procedures, reduce red tape, and improve ease of doing business for both public and private sector players, especially Micro, Small, and Medium Enterprises (MSMEs).

The updated guidelines streamline documentation, shorten approval timelines, and are expected to accelerate the production of compressed biogas (CBG), biogas, and renewable power from agricultural waste, industrial residues, and other organic materials.

Overhaul of Financial Assistance Process

One of the key changes is the restructuring of the Central Financial Assistance (CFA) mechanism. Previously, financial support was granted only after a project achieved 80% of its intended generation capacity. Now, support will be provided in two stages:

In stage 1, 50% of the eligible CFA will be disbursed once the project receives a “Consent to Operate” certificate from the State Pollution Control Board, backed by a bank guarantee.

Thereafter, under stage 2: The remaining 50% will be released after the project reaches 80% of its rated or eligible generation capacity.

Additionally, if a project falls short of the 80% target during performance inspection, it will still be eligible for partial CFA on a pro-rata basis—provided the Plant Load Factor is at least 50%. Projects with a load factor below 50% will not be eligible for any assistance.

Simplified Process

The inspection process has been redesigned for better transparency. Joint inspections will now be conducted by the National Institute of Bio-Energy (SSS-NIBE) along with State Nodal Agencies, Biogas Technology Development Centers, or other MNRE-approved bodies. Projects not availing advance CFA will need to undergo only one performance inspection.

Developers will now have 18 months to claim CFA, counted from either the date of project commissioning or the date of In-Principle CFA approval—whichever is later. This flexibility is expected to give developers more breathing room for implementation.

By tying financial support to actual performance and simplifying regulatory processes, the government hopes to create a more enabling environment for investment in waste-to-energy projects. The reforms are aligned with India’s commitment to achieve net-zero carbon emissions by 2070.

The MNRE emphasized that these changes are a significant step forward in creating a sustainable and business-friendly ecosystem in India’s renewable energy sector.

India wants to establish 5000 biogas plants in the country by the decade end to scientifically manage the biowaste and generate green fuel from it under the SATAT program.