NSPCL Bhilai Biomass Pellet Tender 2026 | 1 Lakh MT Demand | Eligibility, EMD, Quantity & Business Opportunity
India’s push towards clean energy is creating massive opportunities for the biomass industry. One such opportunity has come from NTPC-SAIL Power Company Limited (NSPCL), which has floated a tender for the supply of 1,00,000 MT of biomass pellets for its Bhilai Expansion Power Plant (2×250 MW) in Chhattisgarh.
With no minimum turnover requirement, no prior experience criteria, and opportunities for new manufacturers and traders, this tender can be a game changer for entrepreneurs looking to enter the biomass pellet business.
Last Date to Apply: 19 October 2026
Overview of the Tender
Tender Highlights
| Particulars | Details |
|---|---|
| Buyer | NTPC-SAIL Power Company Limited (NSPCL) |
| Plant | NSPCL Bhilai Expansion Power Plant, Chhattisgarh |
| Product | Non-Torrefied Biomass Pellets |
| Contract Duration | 2 Years (730 Days) |
| Total Requirement | 1,00,000 MT |
| Daily Demand | 140 TPD |
| Tender Portal | GeM Portal |
| Last Date | 19 October 2026 |
Why This Tender is Important
The Government of India is actively promoting biomass co-firing in thermal power plants under the SAMARTH initiative. This policy creates long-term demand for biomass pellets, opening new business opportunities for:
- Biomass pellet manufacturers
- Agricultural waste aggregators
- Traders and suppliers
- New entrepreneurs planning pellet manufacturing plants
- Farmer Producer Organizations (FPOs)
- Biomass business investors
Who Can Participate?
One of the biggest advantages of this tender is its flexible eligibility criteria.
Eligible Applicants
- Existing Biomass Pellet Manufacturers
- New/Future Pellet Manufacturers
- Traders
- Consortiums (maximum three members with at least one pellet manufacturer)
No Experience Required
Unlike many industrial tenders, NSPCL has kept entry barriers extremely low:
- No minimum turnover requirement
- No previous supply experience required
- New businesses can apply
This creates a strong opportunity for first-time entrepreneurs in the biomass sector.
Special Preference for Local Suppliers
To promote regional biomass supply chains, NSPCL has introduced strict local sourcing requirements.
Manufacturing Plant Location
The pellet manufacturing facility must be:
- Located within Chhattisgarh, OR
- Within a 100 km radial distance from NSPCL Bhilai Power Plant
Raw Material Sourcing
Agricultural crop residue used in pellet manufacturing must also be collected from:
- Chhattisgarh State, OR
- Within a 100 km radius of the plant
Distance verification will be done through GPS-based calculations.
Approved Raw Materials for Pellet Manufacturing
| Allowed Agricultural Residues | Restricted Materials |
|---|---|
| Paddy Straw | ❌ Wood obtained from tree cutting |
| Soya Husk | ❌ Municipal Solid Waste |
| Arhar Residue | ❌ Press Mud |
| Cotton Stalk | ❌ Poultry Farm Waste |
| Mustard Crop Residue | |
| Groundnut Shells | |
| Coconut Shells | |
| Bamboo | |
| Dry Garden Prunings |
Biomass Pellet Quality Requirements
To ensure efficient co-firing, NSPCL has specified quality standards.
| Parameter | Requirement |
|---|---|
| Pellet Diameter | Maximum 25 mm |
| Pellet Length | Maximum 35 mm |
| Moisture Content | Maximum 14% |
| Ash Content | Maximum 20% |
| Dust/Fines | Maximum 5% |
| Sulphur Content | Maximum 1% |
| Quoted GCV | 3,400 Kcal/kg |
| Acceptable GCV Range | 2,800 – 4,000 Kcal/kg |
Maintaining consistent pellet quality will be critical for suppliers to avoid financial deductions.
Supply Quantity and Delivery Timeline
| Particulars | Details |
|---|---|
| Minimum Quantity | Every bidder must quote for at least 20 TPD (14,600 MT over 2 years) |
| Quantity Restrictions – Traders & Future Manufacturers | Maximum 30 TPD |
| Quantity Restrictions – Existing Manufacturers | Quantity allowed depends upon certified production capacity |
| Supply Commencement – Existing Manufacturers & Traders | Supply must start within 30 days of award |
| Supply Commencement – Future Manufacturers | Allowed 180 days to establish plant operations |
| Effective Supply Period – Future Manufacturers | 550 days |
EMD and Financial Requirements
Earnest Money Deposit (EMD)
| Quantity Quoted | EMD Amount |
|---|---|
| 20-30 TPD | ₹20 Lakh |
| 31-70 TPD | ₹50 Lakh |
| 71-140 TPD | ₹1 Crore |
EMD Exemption
100% EMD exemption is available only for:
- Micro & Small Enterprises (MSE)
- Actual Pellet Manufacturers
- Valid Udyam Registration
- NIC Code 38300
Traders, consortiums, and future manufacturers are required to submit EMD.
Security Deposit
- Standard Performance Security: 5%
- SC/ST or Women-Owned MSEs: 2.5%
How the Tender Will Be Awarded
NSPCL will follow a Bucket Filling Methodology.
The lowest-priced bidder (L1) will be considered first, and quantities will be allocated upwards until the entire 140 TPD requirement is fulfilled.
Additionally:
25% of total quantity is reserved for MSE suppliers who match the discovered price.
This provides additional opportunities for eligible small businesses.
Quality Deductions and Penalties
Potential bidders should pay close attention to quality compliance because payments are linked directly to pellet performance.
Low GCV
- Payment deductions applicable below standard values.
- No payment if GCV falls below 1,500 Kcal/kg.
Excess Moisture
| Moisture Level | Deduction |
|---|---|
| 14% – 16% | 5% |
| 16% – 18% | 10% |
| Above 18% | Only 20% Payment |
Excess Dust/Fines
Any fines exceeding 5% will attract payment deductions.
Therefore, maintaining proper storage, drying, and pellet production standards is essential.
Business Opportunity Analysis
This tender presents a strong opportunity because:
- Large volume demand of 1,00,000 MT
- Two-year supply security
- No turnover criteria
- No previous experience requirement
- Opportunity for new manufacturers
- Support for local suppliers
- Growing demand under the SAMARTH Mission
Entrepreneurs located in Chhattisgarh and nearby regions can leverage agricultural residue availability to establish sustainable biomass pellet businesses and secure long-term supply contracts.
Conclusion
The NSPCL Bhilai Biomass Pellet Tender 2026 is one of the most entrepreneur-friendly biomass opportunities currently available in India. With low entry barriers, guaranteed demand from a major thermal power plant, and government-backed promotion of biomass co-firing, this tender offers an excellent platform for manufacturers, traders, and new investors to participate in India’s growing green energy ecosystem.
If you are planning to start or expand a biomass pellet manufacturing business, this tender could become your gateway into the rapidly growing biomass energy market.
Tender Closing Date: 19 October 2026
Interested businesses should evaluate their biomass sourcing, manufacturing capacity, and logistics readiness and submit their bids before the deadline.
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