July 1, 2025

MNRE Revised Subsidy Scheme for Biomass Pellet Plants – 2024 Update

📘 Detailed Summary

The Ministry of New and Renewable Energy (MNRE) has revised the Central Financial Assistance (CFA) rates under the Biomass Programme, part of the National Bioenergy Programme (NBP), effective 16 July 2024. These changes aim to boost the production of biomass briquettes and pellets, especially torrefied pellets, by providing higher financial incentives.

The original CFA, notified in 2022, offered the same rate for both briquettes and pellets. However, the revised scheme now differentiates between torrefied and non-torrefied pellets, with significantly enhanced subsidies to promote cleaner energy alternatives.


✅ Revised Key Points

  1. 🔄 Subsidy Differentiation Introduced: New rates distinguish between non-torrefied and torrefied pellets, with torrefied receiving double the support.
  2. 💰 Higher CFA Rates:
    • Non-Torrefied: Rs. 21 lakh/MTPH
    • Torrefied: Rs. 42 lakh/MTPH
  3. 📉 Cap Condition: 30% of capital cost for 1 MTPH plant OR max subsidy amount — whichever is lower.
  4. 🆕 Torrefied Pellet Projects Supported for First Time under CFA.
  5. 🌐 Applicable Only for Projects Registered on Biourja Portal after 16 July 2024.
  6. ⚙️ Old CFA for Briquettes remains unchanged at Rs. 9 lakh/MTPH, up to Rs. 45 lakh max.
  7. 📅 No Retrospective Effect – Only new applications post notification date are eligible.
  8. 📍 Uniform Across All States/UTs – No regional variations.
  9. 🏭 Cap Limit: Rs. 105 lakh for non-torrefied, Rs. 210 lakh for torrefied pellet plants.
  10. 📜 Other Scheme Guidelines (from 2022) remain unchanged.

📊 Difference Table (Old vs Revised CFA)

Plant TypeOld CFA (Rs./MTPH)New CFA (Rs./MTPH)Maximum CFA per Plant% Increase / Change
BriquetteRs. 9 lakhRs. 9 lakhRs. 45 lakhNo change
Non-Torrefied PelletRs. 9 lakhRs. 21 lakh or 30% costRs. 105 lakh↑ +133%
Torrefied PelletNot AvailableRs. 42 lakh or 30% costRs. 210 lakh🆕 Introduced

⚠️ Disclaimer:

This summary is based on the MNRE Office Memorandum dated 16 July 2024. Please refer to the MNRE official website or consult with State Nodal Agencies for the latest updates, eligibility norms, and documentation.