Revised Rate Of Subsidy For Biomass Briquettes & Pellets
Dear Businessman/Investors,
The Ministry of New and Renewable Energy has recently updated the rates for Central Financial Assistance (CFA) under the Biomass Programme. This revision aims to support the manufacturing of biomass pellets, which are a key component in sustainable energy production. The updated rates provide more financial support to businesses involved in producing biomass pellets, making it easier for them to invest in and expand their operations.
Revised rate of subsidy for Biomass Briquettes and pellets with effect from 16th July 2024.
The rate of CFA for pellet manufacturing plants stands revised and the scheme guidelines may be read as under :
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1 Briquette Manufacturing Plant :
The Ministry has made some amendments. Under the new amendment, the subsidy for biomass briquettes will remain the same: ₹9 lakh per ton of production capacity, with a maximum capacity of up to 5 tons per hour, which means a maximum benefit of ₹45 lakh for Biomass Briquettes.
2 Non Torrified Pellet Manufacturing Plant :
- The Financial Assistance provided by the Government has increased from ₹9 lakh to ₹21 lakh per ton of production capacity.
- The maximum production capacity is up to 5 tons. Therefore, if you receive ₹21 lakh per ton, then for 5 tons, the maximum subsidy amount would be ₹1 crore 5 lakh.
- The maximum subsidy will be either ₹1 crore 5 lakh or 30% of the cost of your plant and machinery, whichever is lower. An important aspect to note is that you will receive the subsidy based on the lower of these two amounts.
3 Torrefied Pellet Manufacturing Plant :
The Subsidy amount has increased from ₹21 lakh to ₹42 lakh per ton of production capacity. This means that for a maximum capacity of 5 tons, the maximum subsidy benefit for torrefied biomass pellets is ₹2 crore 10 lakh. The same concept applies here you will receive the subsidy based on the lower of either 30% of the cost of your plant and machinery or the ₹42 lakh per ton production capacity.
| Sr No | Type of Project | Rates of CFA under Biomass programme of NBP (for all states and UTs) |
|---|---|---|
| 1 | Briquette manufacturing plant | Rs. 9.0 lakhs/MTPH (Maximum Rs. 45.0 lakhs per project) |
| 2 | Non Torrefied Pellet manufacturing plant | Rs. 21.0 lakhs/MTPH production capacity or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower (Maximum Rs. 105 lakhs per project) |
| 3 | Torrefied Pellet manufacturing plant | Rs. 42.0 lakhs/MTPH production capacity or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower (Maximum Rs. 210 lakhs per project) |
Difference B/W Torrified and Non Torrified Pellets :
There is a significant logic behind this differentiation, as it is based on technology.
1 The torrefaction process results in pellets with high energy density. This is because, during the process, which occurs at temperatures between 300 and 350 degrees Celsius, the moisture content inside the pellets is almost eliminated due to compression.
In contrast, non-torrefied pellets typically retain a moisture content of approximately 10% to 14%.
2 The high compactness of torrefied pellets means that storage and transportation losses are significantly reduced. Their low moisture content minimizes the potential for biodegradation, extending their usability over a longer period.
In contrast, non-torrefied pellets, with their higher moisture content, have a greater chance of biodegradation and are more susceptible to temperature and water impact.
3 Torrefied pellets generate high power, but the cost of plant and technology is higher compared to non-torrefied pellets.
- The equipment required for high-temperature and high-compression processes in torrefaction increases the overall plant cost. That’s why the Ministry of Renewable Energy has provided higher subsidies for torrefied pellets to offset these additional costs.
- Compared to non-torrefied pellets, torrefied pellets receive a higher subsidy. For non-torrefied pellets, you receive ₹21 lakh, while for torrefied pellets, the subsidy is ₹42 lakh per ton of production capacity. Currently, power plants in our country are inviting tenders for non-torrefied pellets because they utilize agro residues more effectively. That’s why the demand is higher for non-torrefied pellets.
For, more information on this you are requested to contact our KIP subsidy helpline on Mail – sales@kipfinancial.com and contact Number- +918683898080
KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
Very informative article. We introducing this project to our investor group. Please share project details for higher Mega Watt projects and oblige.
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I am interested, kindly send details.
Welcome in KIP
Great thanks for showing interest.
Further, you’re requested to kindly share your contact number so that we can contact to you for your requirements.
You may also connect with us on 8683898080.
Thanks & Regards
I’m interested in biomass plate manufacturing
Welcome in KIP
Great thanks for showing interest.
Further, you’re requested to kindly share your contact number so that we can contact to you for your requirements.
You may also connect with us on 8683898080.
Thanks & Regards