Ministry of Power’s New Price Benchmark Notification for Biomass Pellets
Price Benchmark- NCR – Torrified Biomass Pellet: https://pdf.ac/AZd4i
Price Benchmark- NCR – Non-Torrified Biomass Pellet: https://pdf.ac/3FC5dD
Introduction
Welcome to the KIP business platform, where we bring you the latest updates and insights into business opportunities, particularly in the Biomass sector. Today, we’ll discuss the latest Ministry of Power notification regarding price benchmarking for torrefied and non-torrefied Biomass pellets. This update is crucial for stakeholders in the Biomass industry, as it sets the tone for pricing, demand, and subsidy benefits for the upcoming year.
If you are already in the Biomass industry or planning to start a business in this sector, this blog will serve as a comprehensive guide, helping you navigate through the policy updates, technical standards, and subsidy benefits.
Ministry of Power’s Latest Notification: Price Benchmark for Biomass Pellets
1. Price Benchmark for Torrefied Biomass Pellets
The Ministry of Power has fixed a price benchmark for torrefied Biomass pellets at ₹2.58 per 1000 kcal of calorific value. This benchmark applies from 18th November 2024 to 18th November 2025 in the NCR region.
Key Highlights:
- Base Price: ₹2.58 per 1000 kcal (excluding GST and transportation).
- Calorific Value (GCV): Between 3400 to 5000 kcal/kg.
- Moisture Content: Must be below 14%.
- Per Metric Ton Pricing: Approximately ₹872 per metric ton (base price).
- Additional Costs: GST and transportation charges to be added separately.
2. Price Benchmark for Non-Torrefied Biomass Pellets
For non-torrefied Biomass pellets, the price benchmark remains at ₹2.32 per 1000 kcal. This rate, initially set for 2023, has been extended until 31st August 2025.
Key Highlights:
- Base Price: ₹2.32 per 1000 kcal.
- Calorific Value (GCV): Between 2800 to 3400 kcal/kg.
- Moisture Content: Below 14%.
- Per Metric Ton Pricing: Around ₹788 per metric ton (base price).
- Additional Costs: GST and transportation charges to be added separately.
These benchmarks ensure price stability, which encourages businesses to invest in Biomass production and supply chains.
Demand for Biomass Pellets in the NCR Region
The demand for Biomass pellets has been steadily increasing due to their environmental benefits and policy support. Key drivers include:
- Power Plants: Regular tenders for torrefied and non-torrefied Biomass pellets are floated by power plants.
- Industrial Use: Sectors such as pharmaceuticals, paper, and other industries that rely on coal are increasingly using Biomass pellets as a substitute.
- Government Mandates: Policies promoting Biomass usage in the National Capital Region (NCR) to curb air pollution and manage agricultural residue.
Subsidies and Benefits for the Biomass Sector
The Government of India and various State Governments offer extensive subsidies to boost the Biomass sector. Here’s a quick overview of the available benefits:
1. Capital Subsidy
- Applicable under schemes like the Agriculture Infrastructure Fund.
- Helps reduce the initial investment required for setting up Biomass pellet plants.
2. Interest Subsidy
- Reduced interest rates on loans for Biomass pellet production units.
- Encourages businesses to scale up operations.
3. Tax Incentives
- SGST Refunds: State governments refund a portion of the State Goods and Services Tax (SGST).
- Stamp Duty Exemptions: Reduced costs for land and property registration.
4. Employment Generation Benefits
- Subsidies and incentives for employment created in Biomass-based units.
5. Other Incentives
- Policies supporting land-use approvals (CLU assumptions).
- Programs under the Ministry of New and Renewable Energy.
Starting a Biomass Pellet Business: A Lucrative Opportunity
If you are considering investing in the Biomass sector, now is an excellent time. Here’s what you need to get started:
1. Raw Material Availability
Ensure access to agricultural residues like straw, husk, and other biomass materials.
2. Compliance with Standards
Meet the calorific value and moisture content requirements specified by the government.
3. Financial Feasibility
Our experts can help you develop a detailed financial plan, considering costs like:
- Plant setup.
- Raw material procurement.
- GST and transportation.
4. Vendor Support
We provide a list of reliable technical vendors and power plants demanding Biomass pellets.
5. Access to Subsidy Programs
Utilize our e-book for detailed insights into subsidy provisions, market dynamics, and financial feasibility.
Download Our E-Book for Complete Guidance
To help you make informed decisions, KIP has developed a detailed e-book covering:
- Comprehensive subsidy benefits.
- Financial feasibility reports for a 2 TPH Biomass plant.
- Technical vendor recommendations.
- Power plant demand analysis.
Download Biomass Pellets Business eBook: https://pages.razorpay.com/biomass-pellet-business-ebook
Why Choose KIP for Your Biomass Business Updates?
- Expert Insights: Regular updates on government notifications and tender opportunities.
- End-to-End Support: From financial planning to subsidy application assistance.
- Community Engagement: Join our Business and Subsidy Updates Community for the latest news and networking opportunities.
Conclusion
The latest price benchmarks set by the Ministry of Power provide a golden opportunity for businesses to plan and invest in the Biomass pellet sector. With rising demand and government support, this is the right time to explore this environmentally and financially rewarding business.
For more updates, subscribe to the KIP YouTube Channel and join our community for regular insights into business and subsidy opportunities.
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We are planning to set a manufacturing unit for biomass pellets in Assam and would like project report with positive and negative points for Assam region in reference to market.
Regards
Manish Patel
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We like to have a customised viability report for the incentives and subsidies available for our two projects once in UP/Haryana and second in Madhya Pradesh for our Biomass Pellet plants with warehousing facility in one of them.
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