India increases financial assistance for biomass pellet manufacturing

This will utilise the country’s biomass resources.

The Ministry of New and Renewable Energy has announced enhanced financial incentives for biomass pellet manufacturing as it boosts efforts to promote cleaner air quality and green energy sources.

In a statement, the ministry said the Central Financial Assistance (CFA), which is part of the National Bioenergy Programme, will grant non-torrefied pellet manufacturing plants $25,610 (INR21.0 lakhs) per metric tonnes per hour (MTPH) with a maximum amount of $128,049 (INR105 lakhs) per project. For torrefied pellet manufacturing plant, the assistance will be $51,220 (INR42.0 lakhs) per MTPH with a cap of $256,098 (INR210 lakhs) per project or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower in case of both the components.

“The revision of CFA will enhance the utilisation of Biomass in the Country including utilisation of Paddy Straw in States like Punajb, Haryana and Uttar Pradesh and would contribute to air quality management by avoiding stubble burning,” the ministry said. 

This move will also allow the country to take advantage of its biomass production at 750 million metric tonnes (MT) annually, out of which 228 million MT is surplus. Biomass can be utilised in various forms such as in the production of heat and energy, and briquettes/pellets.

$1 = INR82