The Ministry of New and Renewable Energy (MNRE) in India has introduced a scheme to promote the manufacturing of biomass briquettes and pellets, aiming to enhance the utilization of biomass resources for energy production. This initiative is part of the broader National Bioenergy Programme (NBP), which seeks to support various bioenergy projects across the country.

Objective

The primary goal of the scheme is to encourage the establishment of biomass briquette and pellet manufacturing plants. This effort aims to:

• Reduce Stubble Burning: Mitigate air pollution by providing an alternative to the open burning of agricultural residues.
• Provide Additional Income for Farmers: Create a market for surplus agricultural biomass, offering farmers an extra source of revenue.
• Promote Environmental Sustainability: Encourage the use of renewable energy sources, thereby reducing reliance on fossil fuels and decreasing greenhouse gas emissions.

Key Features

1. Central Financial Assistance (CFA):
   • The scheme offers financial support to project developers for setting up briquette and pellet manufacturing units.
   • As of July 16, 2024, the CFA rates have been revised:
     • Non-Torrefied Pellet Manufacturing Plants: ₹21 lakh per metric ton per hour (MTPH) of production capacity, with a maximum of ₹105 lakh per project.
     • Torrefied Pellet Manufacturing Plants: ₹42 lakh per MTPH, with a maximum of ₹210 lakh per project or 30% of the capital cost considered for plant and machinery of a 1 MTPH plant, whichever is lower. Energetica India
2. Eligibility Criteria:
   • Entities such as companies registered under the Companies Act, partnership firms, proprietorship firms, cooperatives, public sector companies, and government-owned firms are eligible for financial support under this scheme. Kip Financial
3. Application Process:
   • Applications must be submitted through the BioUrja portal, an online platform developed by MNRE for the submission and tracking of applications related to bioenergy projects. Bio Urja
4. Implementation Timeline:
   • The scheme is valid from April 1, 2021, to March 31, 2026, aligning with the National Bioenergy Programme’s Phase-I implementation period. Bio Urja

Recent Updates

In July 2024, MNRE revised the CFA rates to make the scheme more attractive and to enhance biomass utilization, including the use of paddy straw in states like Punjab, Haryana, and Uttar Pradesh. This revision aims to contribute to air quality management by reducing stubble burning practices.

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Impact and Benefits

• Environmental Impact: By promoting the use of biomass briquettes and pellets, the scheme helps in reducing air pollution caused by the burning of agricultural residues.
• Economic Benefits: It provides farmers with an additional source of income and encourages the growth of renewable energy industries, contributing to rural economic development.
• Energy Production: The initiative supports the generation of clean energy, aligning with India’s renewable energy targets and enhancing energy security.

For more detailed information and to apply for the scheme, interested parties can visit the official MNRE website or the BioUrja portal.

MNRE’s Biomass Briquettes & Pellets Scheme: A Comprehensive Overview

The Ministry of New and Renewable Energy (MNRE) in India has introduced the Biomass Briquettes & Pellets Scheme under the National Bioenergy Programme (NBP). This initiative promotes the use of biomass briquettes and pellets for energy production, helping address environmental concerns while providing farmers with additional income sources. The scheme is part of India’s broader commitment to renewable energy and sustainable agricultural practices.

Objectives of the MNRE Briquettes & Pellets Scheme

1. Reduce Air Pollution: The scheme aims to reduce pollution caused by stubble burning by encouraging the use of agricultural residues in producing briquettes and pellets.
2. Promote Clean Energy: By promoting biomass as a fuel source, the scheme contributes to the renewable energy goals of India, reducing dependency on fossil fuels.
3. Increase Farmer Income: The scheme creates a market for agricultural residues like straw and husk, helping farmers earn extra income by selling biomass waste.
4. Encourage Sustainable Practices: The scheme encourages the use of biomass for power generation, industrial heating, and cooking, reducing carbon emissions and fostering sustainable development.

Key Features of the MNRE Briquettes & Pellets Scheme

1. Financial Assistance (Central Financial Assistance – CFA):
   • Non-Torrefied Pellet Manufacturing Plants: Financial support of ₹21 lakh per Metric Ton Per Hour (MTPH) of production capacity, with a maximum of ₹105 lakh per project.
   • Torrefied Pellet Manufacturing Plants: Support of ₹42 lakh per MTPH of production capacity, with a maximum of ₹210 lakh per project or 30% of the capital cost (whichever is lower).
2. Eligibility:
   • Eligible entities include companies, partnership firms, proprietorships, cooperatives, and public sector undertakings involved in the production of biomass briquettes and pellets.
   • The scheme also targets regions where stubble burning is prevalent, such as Punjab, Haryana, and Uttar Pradesh.
3. Target Biomass Materials:
   • The scheme focuses on utilizing paddy straw, wheat straw, sugarcane bagasse, sawdust, and other agricultural residues that would otherwise be burned or left unused.
4. Subsidy and Loan Assistance:
   • The scheme operates on a credit-linked subsidy model, meaning that financial assistance is provided once the project is approved and a loan is secured.
   • The subsidy is disbursed directly to the project developer’s loan account.
5. Application Process:
   • Applications for the scheme must be submitted through the BioUrja Portal (https://biourja.mnre.gov.in), where applicants can track the status of their submission.
   • A detailed project report (DPR) and proof of land and machinery purchase are necessary for submission.

Key Benefits of the Briquettes & Pellets Scheme

1. Environmental Benefits:
   • Reduction in Pollution: The scheme directly addresses the problem of stubble burning, which contributes to severe air pollution in North India. By using agricultural residues for energy production, harmful emissions are significantly reduced.
   • Renewable Energy Promotion: By encouraging the use of biomass, the scheme helps India move towards its renewable energy targets and reduces greenhouse gas emissions.
2. Economic Benefits:
   • Income Generation for Farmers: The scheme creates a market for agricultural waste, providing farmers with an additional revenue stream and reducing their need to burn stubble.
   • Support for Rural Employment: Establishing briquette and pellet manufacturing units provides employment opportunities in rural areas, fostering economic growth.
3. Sustainability:
   • Energy Security: Biomass briquettes and pellets can be used for industrial heating, power generation, and cooking, contributing to energy security, especially in rural and remote areas.
   • Reduction in Fossil Fuel Dependency: The use of biomass as a fuel source reduces reliance on traditional fossil fuels such as coal and petroleum.
4. Support for Clean Energy Projects:
   • The scheme aligns with India’s renewable energy policy framework, providing financial incentives for projects that use biomass to generate clean energy.

Recent Updates

• CFA Revisions (2024): As of July 2024, the CFA rates were revised to increase the uptake of biomass briquette and pellet production units, especially in states such as Punjab, Haryana, and Uttar Pradesh, where paddy straw burning is a major issue. This revision was done to promote better air quality and reduce pollution.
• Focus on Paddy Straw: The scheme now prioritizes the use of paddy straw, which is a significant contributor to seasonal air pollution in North India, especially during the post-harvest season.

Challenges and Recommendations

Challenges:

1. Awareness: Many farmers and potential project developers may not be aware of the financial assistance available under the scheme, limiting its uptake.
2. Supply Chain Issues: Efficient collection, storage, and transportation of biomass materials like paddy straw can be a logistical challenge, particularly in remote regions.

Recommendations:

1. Increased Awareness Campaigns: More targeted awareness campaigns at the state and district levels can help spread information about the scheme to farmers and rural entrepreneurs.
2. Strengthening Supply Chain Infrastructure: To maximize the potential of biomass-based projects, the government could support the development of a robust supply chain for collecting, storing, and transporting agricultural residues.

How to Apply

1. Project Proposal: Prepare a detailed project report (DPR) outlining the technical and financial details of the proposed biomass briquette or pellet manufacturing unit.
2. Application Submission: Submit the application through the BioUrja Portal (https://biourja.mnre.gov.in), along with necessary documents, including proof of land acquisition, machinery, and other capital investments.
3. Loan and Subsidy Disbursement: Once the project is approved and a loan is secured from a financial institution, the subsidy will be disbursed in stages directly to the loan account.

Conclusion

The MNRE Briquettes & Pellets Scheme plays a critical role in supporting India’s renewable energy targets and addressing the environmental hazards of stubble burning. By promoting the establishment of biomass briquette and pellet manufacturing units, the scheme provides both environmental and economic benefits, helping reduce air pollution and providing additional income streams for farmers. With recent revisions to the scheme’s financial assistance structure, it is now more attractive to entrepreneurs and businesses looking to invest in clean energy projects.

For further information and application details, interested parties can visit the official MNRE website or the BioUrja portal.

Here’s a detailed explanation of the MNRE Biomass Briquettes & Pellets Scheme presented in a tabular format:

This table provides a clear and comprehensive overview of the MNRE Biomass Briquettes & Pellets Scheme, highlighting its key features, benefits, and application process.