Govt extends bioenergy programme to FY26, to provide Rs 858 crore for Phase-I

Paddy stubble bundles stored near a biomass power plant in Punjab. Photo by Manu Moudgil/Mongabay.

To increase India’s bioenergy capacity, which stands at merely 10,701 MW, the government on November 7 said it was extending a national programme to 2025-26 and would provide Rs 858 crore for the first of the two-phased initiative.

The ministry of new and renewable energy (MNRE) in a statement said the National Bioenergy Programme would include three sub-schemes —Waste to Energy Programme (Rs 600 crore), Biomass Programme (Rs  158 crore) and Biogas Programme (Rs 100 crore).

Under the waste-to-energy programme, companies that take up production of biogas, bioCNG, and electricity from urban, industrial and agricultural waste and residues would be given a central financial assistance (CFA) of ₹25 lakh for 12,000 cubic metre a day.

The maximum assistance for a biogas project will be Rs 5 crore. The Centre will provide financial assistance of ₹75 lakh per MW for new biogas plants and ₹50 lakh per MW for existing units.

The Indian Renewable Energy Development Agency (IREDA) will be the implementing agency for the programme.

The biomass programme is aimed at supporting manufacturing of briquettes and pellets, apart from the promotion of biomass (non-bagasse) based cogeneration in industries).

Financial assistance of Rs 9 Lakh per MTPH (metric ton/hour) manufacturing capacity, with a maximum CFA of Rs 45 lakh per plant, will be given to set up pellets and briquettes for use in power generation.

For biomass (non-bagasse) cogeneration projects, a CFA of Rs 40 lakh per megawatt on installed capacity will be given with a maximum of Rs 5 crore per project.

The biogas programme will support the setting up of family and medium size plants in rural areas, the MNRE said. The CFA for this programme is diverse starting from Rs 17,000 based on the plant sizes.

To utilise huge surplus biomass, cattle dung, industrial and urban biowaste available in the country for recovery of energy, the MNRE has been promoting bioenergy in India since 1980s, the ministry said. The central financial assistance for bioenergy projects increased project viability,” the ministry said.