Ministry of New and Renewable Energy initiates National Bio Energy Programme to utilize surplus biomass for power generation

The Ministry of New and Renewable Energy (MNRE) has notified the National Bioenergy Programme on 2^nd November, 2022. The programme has been recommended for implementation in two phases with a total budget outlay of Rs 1715 Crore and a budget outlay of Rs 858 Crore has been allocated for the Phase-1. This programme has a provision of Central Financial Assistance (CFA) for various components related to Power generation, Biogas/BioCNG generation and Briquette/Pellet manufacturing, wherein Biomass is one of the major feedstock material, which primarily shall be sourced from rural areas. The National Bioenergy Programme shall not only promote the utilization of surplus biomass but also provide an additional source of income for rural households.

Salient features and implementation mechanism of the National Bio Energy Programme:

The National Bioenergy Energy Programme supports setting up of Bioenergy projects in the country under the following components:

1. Waste to Energy Programme
2. Biomass Programme
3. Biogas programme

1. 1. Waste to Energy Programme: The objective of this programme is to support setting up of waste to energy projects for generation of Biogas/BioCNG/Power/producer or syngas from urban, industrial and agricultural wastes/residues. The programme provides Central Financial Assistance (CFA) to project developers and service charges to implementing/inspection agencies in respect of successful commissioning of Waste to Energy plants. The details of CFA for different components under this programme are as follows:

1. 1. 1. for Biogas generation: Rs 0.25 crore per 12000 cum/day (Maximum CFA- Rs.5.00 crore/project)
    2. for BioCNG/Enriched Biogas/Compressed Biogas generation: (Maximum CFA- Rs.10 crore/project)
      1. BioCNG generation from new Biogas plant- Rs 4.0 Crore per 4800 Kg/day;
      2. BioCNG generation from existing Biogas plant- Rs 3.0 Crore per 4800 Kg/day;

1. 1. 1. for Power generation based on Biogas (Maximum CFA- Rs. 5.00 crore/project):-
      1. Power generation from new biogas plant : Rs 0.75 Crore per MW
      2. Power generation from existing biogas plant: Rs 0.5 crore / MW

for Power generation based on bio & agro-industrial waste (other than MSW through incineration process):- Rs. 0.40 crore/MW (Maximum CFA – Rs.5.00 Crore/Project)

(f) for Biomass Gasifier for electricity/ thermal applications:

1. Rs. 2,500 per kWe with duel fuel engines for electrical application
2. Rs. 15,000 per kWe with 100% gas engines for electrical application
3. Rs. 2 lakh per 300 kWth for thermal applications.

Note: The eligible CFA would be 20% higher than Standard CFA pattern for (a) all plants in Special Category States (NE Region, Sikkim, Himachal Pradesh and Uttarakhand), Jammu & Kashmir, Ladakh, Lakshadweep and Andaman & Nicobar Islands, and (b) Biogas/BioCNG/Power (biogas based) generation plants based on cattle dung as main feedstock set up by Gaushalas registered with respective State Government.

1. 1. Biomass Programme: The objective of this programme is to support setting up of Biomass Briquette/Pellet manufacturing plants and Biomass (non-bagasse) based cogeneration projects in the country. This programme provides Central Financial Assistance (CFA) to project developers and service charges to implementing/inspection agencies for setting up of Biomass projects. The details of CFA for different components under this programme are as follows:
1. 1. 1. for Briquette/Pellet manufacturing plants: Rs. 9.00 Lakhs/ TPH (Maximum CFA- Rs. 45.00 Lakh per project).
    2. for Non-Bagasse Cogeneration Projects: Rs. 40 Lakhs/ MW (Maximum CFA- Rs.

5.00 Crore per project).

1. 1. Biogas Programme: The objective of this programme is to support setting up of biogas plants for clean cooking fuel, lighting, meeting thermal and small power needs of users which ultimately results in GHG reduction, improved sanitation, women empowerment and creation of rural employment. The details of Central Financial Assistance (CFA) for different components under this programme are as follows:
1. 1. 1. for small biogas plants (1-25 cubic meter/day plant capacity): Rs. 9800/- to Rs. 70,400/- per plant based on size of the plant in cubic meter;
1. 1. 1. for Power generation and thermal application (25 – 2500 cubic meter/day plant capacity): Rs. 35,000/- to Rs. 45,000/- per kilowatt for power generation and Rs. 17,500

/- to Rs. 22,500/- per kilowatt equivalent for thermal applications (The eligible CFA would be 20% higher than Standard CFA for NER, Island, Registered Gaushalas and SC/ST beneficiaries).

This information was given by Shri R.K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha today.