NTPC Dadri Biomass Pellet Tender 2026: A 3.78 Lakh MT Business Opportunity for Biomass Manufacturers and Traders
Hello Businessman.
NTPC Limited has announced a significant procurement opportunity for the supply of agro-residue based non-torrefied biomass pellets for its Dadri Thermal Power Station located in Gautam Buddha Nagar, Uttar Pradesh. The tender offers a substantial requirement of 3.78 lakh metric tonnes (378,000 MT) of biomass pellets over a 270-day supply period, making it one of the major procurement opportunities in India’s biomass sector.
This tender aligns with the Government of India’s ongoing initiative to promote biomass co-firing in coal-based thermal power plants, helping reduce carbon emissions while creating sustainable business opportunities for biomass pellet manufacturers, traders, aggregators, and supply chain partners.
Total Tender Quantity: 3,78,000 MT
Last Date: 31st August 2026
Tender Highlights
- Tender Authority: NTPC Limited
- Project Location: Dadri Thermal Power Station, Gautam Buddha Nagar, Uttar Pradesh
- Product: Agro-Residue Based Non-Torrefied Biomass Pellets
- Total Quantity: 3,78,000 Metric Tonnes
- Supply Duration: 270 Days
- Bid Submission: Through GeM (Government e-Marketplace)
- Bid Submission Deadline: 31st August 2026
Who Can Participate?
The tender allows participation from multiple eligible entities, including:
- Existing Biomass Pellet Manufacturers
- Registered Traders
- Aggregators
- Consortiums comprising eligible participants
However, the tender is not open for future manufacturers who have not yet established production facilities. Participants must already meet the eligibility requirements specified in the tender documents.
EMD Requirements
Earnest Money Deposit (EMD) requirements vary depending on the quantity offered.
The tender provides different EMD slabs based on bid quantity.
Eligible MSME manufacturers may receive exemptions as per applicable government procurement policies, whereas traders and aggregators may be required to furnish EMD according to the tender conditions.
Participants should carefully verify applicable exemptions before bid submission.
Understanding the Pricing Model
- Bidders should note that this procurement follows a benchmark price basis notified by the Ministry of Power for the NCR region.
- Fixed Ex-Factory Price: Rs. 8282.40 per MT (inclusive of 5% GST) for a Gross Calorific Value (GCV) of 3400 Kcal/Kg.
- The Bidding Variable: Bidders do not compete on the base price of the pellets; instead, they quote the transportation price (including GST) per ton from their factory to the NTPC Dadri site
Technical Standards
Supplied pellets must strictly adhere to physical and chemical parameters to ensure efficient combustion
. Key specifications include:
- Gross Calorific Value (GCV): 2800 to 3400 Kcal/Kg (As-Received Basis).
- Dimensions: Cylindrical shape with a diameter ≤ 25 mm and length ≤ 35 mm.
- Moisture Content: Ideally ≤ 14%, with a hard limit of 18%.
- Other Limits: Ash content ≤ 20%, Sulphur ≤ 1%, and Fines ≤ 5.
Eligibility and Participation
- The tender is open to Indian entities, including manufacturers, traders, and aggregators.
- Technical QR: Bidders must have successfully supplied at least 5,000 MT of biomass pellets within a continuous 12-month period during the last three financial years.
- Local Content: Only Class-I local suppliers (offering 100% local content) are eligible.
- Minimum Quantity: Bidders must offer at least 20 Tonnes Per Day (TPD), with increments in multiples of 10 TPD.
Important Commercial Conditions
- Contract Duration: 270 days from the Letter of Award (LOA).
- Security Deposit: Successful bidders must provide a guarantee of 5% of the total contract value.
- Supply Shortfalls: To encourage capacity ramp-up, there is a 60-day “No LD” period.
- Afterward, monthly shortfalls exceeding 30% are subject to liquidated damages at 5% of the quoted FOR price per ton.
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