MNRE Biomass Subsidy for Pellets – Now became Easier

1. Simple IP Approval Process (Before Starting Production)

Before you start production, you must apply for In-Principle (IP) approval on the Bio Urja Portal. This step is important to become eligible for subsidy.

2. Techno-Economic Report No Longer Mandatory

Earlier, applicants needed to submit a techno-feasibility report signed by their bank. Now this requirement has been removed, making the application process simpler.

3. No More Site Photos & EIA Report

You no longer need to submit high-resolution site photographs or an Environmental Impact Assessment (EIA) report. This removes another major hurdle for small investors.

4. Sales Agreement Flexibility

Previously, a 2-year biomass sales agreement was required. Now, you can submit any type of sales agreement or future buyer intent letter, even if it’s for 6 months or 1 year. This helps new units start with more confidence.

5. IoT-Based Monitoring Allowed (Instead of SCADA)

The older requirement of installing expensive SCADA systems is now relaxed. You can now use any IoT-based system and submit quarterly production data to the ministry.

6. Production Operation Time Reduced from 16 to 10 Hours

Earlier, your plant had to run 16 hours/day during inspection. Now it’s reduced to just 10 hours/day, making it easier for units with lower orders.

7. Simplified Performance Benchmark for Full Subsidy

If your plant achieves 80% or more of its rated capacity, you get 100% subsidy.

• 80%+ = 100% subsidy
• 50%–79% = Proportional subsidy
• Below 50% = No subsidy

This removes confusion and sets clear, achievable targets for manufacturers.

8. Only Pellet Manufacturing Is Eligible for Subsidy

If your unit manufactures both briquettes and pellets, only the pellet production machinery will be eligible for subsidy.

9. One Subsidy Scheme at a Time (MNRE or CPCB)

You can claim subsidy from either MNRE or Central Pollution Control Board (CPCB) – not both. A written declaration is now mandatory to avoid duplication.