MNRE Subsidy for Biomass Briquettes and Pellet Business
National Bioenergy Program of Ministry of New and Renewable Energy of Govt. of India has implemented Biomass Program, “A Scheme to Support Promotion of Manufacturing of Briquettes & Pellets Industries in the Country”.This program aims to support the creation of industries that manufacture briquettes and pellets, which are renewable energy sources made from biomass.
Duration of Scheme is up to March 2026.
Budget Outlay for Phase – 1 is Rs. 158 Cr.
Objective:
The goal of the Biomass Program is to help set up factories that make biomass briquettes and pellets, and to support projects that generate energy using biomass (excluding sugarcane residue) in various industries. The main aims are:
1 Reduce Stubble Burning: Use leftover agricultural waste to prevent farmers from burning it.
2 Provide Extra Income for Farmers: Allow farmers to sell their extra agricultural residue.
3 Promote Better Environmental Practices: Reduce pollution and improve environmental health.
Scope:
The program offers financial support to project developers and service fees to agencies that set up briquette and pellet manufacturing plants, as well as biomass (excluding sugarcane residue) energy projects in industries.
Eligibility :-
Companies registered under the Companies Act, partnership firms, proprietorship firms, cooperatives, public sector companies, and government-owned firms are all eligible for financial support under this scheme.
Funding Pattern:
Briquette/Pellet Manufacturing Plants: Rs. 9 lakh per metric ton per hour (MTPH) of manufacturing capacity, with a maximum of Rs. 45 lakh per plant.
Terms & Conditions:
The program will provide financial assistance for projects using various types of biomass, including:
i) Crop residues: Such as paddy straw, wheat straw, mustard stalks, cotton stalks, etc.
ii) Energy plantation wood: Such as prosopis juliflora.
iii) Other organic materials: Such as weeds, palm leaves, coconut shells and husks.
iv) Industrial wood waste: Such as sawdust, offcuts, and bark.
v) Agro-industrial residue: Such as rice husk and barley husk.
vi) Forest residues: Such as pine needles and tree branches and stems.
- Only proposals for setting up briquette/pellet manufacturing plants and biomass (non-bagasse) cogeneration projects are eligible for this scheme. Projects using bagasse are not eligible.
- Biomass (non-bagasse) cogeneration projects that plan to increase the capacity of existing plants can get financial assistance, but only for the additional capacity achieved with new equipment.
- Projects using municipal solid waste, black liquor, slop, press mud, and other processed industrial waste are not eligible for this scheme.
- Minimum project/ plant size requirement for grant of CFA under this scheme
(a) For Briquette/Pellet Manufacturing Plant: 1 MTPH (metric tons per hour) - Central financial assistance from any other Ministry or department of the Central Govt. should not be claimed for proposed plant for which application has been submitted to this Ministry.
- Only projects that install new equipment, such as briquette/pellet making machines, boilers, or turbines, are eligible for financial support under the scheme, including projects that are enhancing their capacity.
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)
Sir please help me to get started biomass briquettes/pellets business so that i can supply enough tones. As I have a forest to produce saw dust as well as fields to produce. Please guide me accordingly step by step to be successful to get loan and kick started. Sir please get me successful help and guidance from you sir. Thanking you a lot for all in all necessary help sir.
Thanks for your interest. If you have any query kindly share your number or you can connect with us on 8683898080.
I am a resident from Sonitpur district of Assam. I am in possession of about 14400 Sqft. of land where I want to set up a Biomass pellet manufacturing plant of capacity 2MT/H from Paddy straw and Rice husk. Since Paddy is abundantly cultivated in the state of Assam, arrangement of raw materials will not be a problem. Kindly share the following information in my mail ID:
i) Documentation and submission of application for grant of Govt. Subsidy.
ii) Market study for Raw materials availability and selling of finished products.
iii) Type of Plant to be set-up and tentative cost of the project.
iv) Consultancy services for preparation of Project Report and all required co-ordination in the process of Project approval.
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