CPCB Subsidy for Biomass Pellet Projects in NCR Areas
The biomass sector in India is growing rapidly due to rising demand from thermal power plants and industrial units. To promote the use of biomass-based fuels and reduce air pollution caused by stubble burning, the Central Pollution Control Board (CPCB) has introduced a one-time financial assistance scheme for Biomass Pellet Pilot Projects, specifically targeted at the NCR region.
This blog explains the CPCB Biomass Pellet Subsidy, its benefits, eligibility conditions, and application process in a simple and practical manner.
Why Biomass Pellet Projects Are Important
Biomass pellets are an eco-friendly alternative to fossil fuels. They are widely used in:
Thermal power plants
Cement and steel industries
Industrial boilers
Food processing units
By promoting biomass pellets, the government aims to:
Reduce crop residue burning
Improve air quality in NCR
Encourage sustainable energy solutions
Support clean industrial fuel adoption
What Is the CPCB Biomass Pellet Subsidy?
The CPCB subsidy is a one-time financial assistance provided for setting up new biomass pellet manufacturing pilot projects in NCR areas.
This incentive is designed to support plant and machinery investment, not land or civil construction.
Applicable Areas (NCR Region)
The scheme is applicable only to projects located in the National Capital Region (NCR), which includes:
Delhi
Haryana
Punjab
NCR districts of Uttar Pradesh
NCR districts of Rajasthan
Only projects located within the notified NCR boundaries are eligible.
Subsidy Amount & Financial Assistance
. Non-Torrefied Biomass Pellets
₹28 lakh per TPH (ton per hour) capacity
Maximum eligible capacity: 5 TPH
Maximum subsidy: ₹1.40 crore
Subsidy limited to 40% of plant & machinery cost, whichever is lower
2. Torrefied Biomass Pellets
₹56 lakh per TPH capacity
Maximum eligible capacity: 5 TPH
Maximum subsidy: ₹2.80 crore
Also limited to 40% of eligible plant & machinery cost
Key Eligibility Conditions
To avail CPCB subsidy, the project must meet the following criteria:
The project must be new (existing units are not eligible)
At least 80% raw material must be paddy straw
Remaining 20% can be other biomass residues
The unit must be located in NCR
Only one subsidy scheme can be availed (either CPCB or another central scheme, not both)
Preference is given to:
Units with farmer agreements / FPO linkage
Pellet sales agreements with industries or power plants
Indian-made machinery
Eligible Plant & Machinery Components
Subsidy is applicable only on plant and machinery, including:
Grinder / Shredder
Dryer system
Pelletization machine
Conveyors and handling systems
Air pollution control devices
Automation systems
❌ Land cost, building, and civil works are NOT eligible
Application & Approval Process
Prepare a Detailed Project Report (DPR)
Obtain Consent to Establish (CTE) from State Pollution Control Board
Apply on the CPCB portal before starting production
State Pollution Control Board reviews and forwards the proposal to CPCB
Upon approval, the project is monitored for compliance
A bank guarantee equal to subsidy amount may be required (valid for one year)
Subsidy is released after verification and compliance
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