Biomass Programme — briquette and pellet plants (National Bioenergy Programme)
Closed by: MNRE Biomass Programme guidelines (Nov 2022) (2 Nov 2022, cl. 4.1(i): "The last date for submitting the applications under these guidelines shall be 31.12.2025.")
A central grant for companies, firms and cooperatives setting up plants that turn crop residue into briquettes or pellets — up to ₹45 lakh (briquettes), ₹105 lakh (pellets) or ₹210 lakh (torrefied pellets) a plant. Applications under the 2021-26 phase closed on 31 December 2025.
- Lead benefit
- ₹9,00,000per tonne per hour of capacity, at most
- Components
- 3each read from the document
- Who can apply
- 4kinds of applicant
- Closing date
- Closed on 31 Dec 2025see “When to apply”
What it pays
₹9 lakh per tonne-per-hour of briquette capacity, at most ₹45 lakh a plant (minimum plant size 1 tonne per hour).
What the document says, word for word
Only new machinery counts, and the plant must be at least 1 tonne per hour (cl. 3.6, 3.10). The full grant is paid after a performance test at 80% of rated capacity; less output gets a pro-rata share (amended cl. 4.4, OM of 27.06.2025).
“(a) Briquette manufacturing plant — Rs. 9.0 lakhs/MTPH (Maximum Rs. 45.0 lakhs per project)”Pellet plant: ₹21 lakh per tonne-per-hour or 30% of the plant and machinery cost, whichever is lower — at most ₹105 lakh a plant.
What the document says, word for word
“(b) Non Torrefied Pellet manufacturing plant — Rs. 21.0 lakhs/MTPH production capacity or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower (Maximum Rs. 105 lakhs per project)”Torrefied pellet plant: ₹42 lakh per tonne-per-hour or 30% of the plant and machinery cost, whichever is lower — at most ₹210 lakh a plant.
What the document says, word for word
“(c) Torrefied Pellet manufacturing plant — Rs. 42.0 lakhs/MTPH production capacity or 30% of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower (Maximum Rs. 210 lakhs per project)”How much can I claim?
This clause does not fund this applicant type (para 2, table row (a), revising para 2.1 of the guidelines).
Only new machinery counts, and the plant must be at least 1 tonne per hour (cl. 3.6, 3.10). The full grant is paid after a performance test at 80% of rated capacity; less output gets a pro-rata share (amended cl. 4.4, OM of 27.06.2025).
Who can apply
- Agri entrepreneur
- Agri startup
- Cooperative
- FPO
Papers you need
- Forwarding letter from you (if self-financed) or from your lead bank (if on loan), in the Annexure-II format
- Detailed Project Report or project report of the plant
- Loan sanction letter, if the plant is financed by a bank
- Techno-economic feasibility report, if the plant is on a bank loan
- Recent time-stamped photographs of the site
- Notarised undertaking on ₹500 non-judicial stamp paper, in the Annexure-V format (original)
- For the grant: loan disbursal certificate, if on a bank loan
- For the grant: chartered accountant's certificate of the total cost (as per invoices) and where the money came from
- For the grant: consent to operate from the State Pollution Control Board, where needed
- For the grant: environmental (EIA) clearance, where needed
- For the grant: a contract to sell your briquettes or pellets for at least two years
- For the grant: time-stamped photographs of the finished plant
- For the grant: certificate from your lead bank that the loan is not an NPA, if on a loan (original)
- For the grant: payment mandate form certified by the bank for the loan account (original)
How to apply
- Applications were made on the BioUrja portal (biourja.mnre.gov.in) before commissioning the plant, through IREDA as implementing agency (cl. 4.1(i), covering approval para 9).
- The last date under these guidelines was 31.12.2025 (cl. 4.1(i)); watch mnre.gov.in for a Phase-II notification.
Applying is free. Never pay anyone to apply for you.
When to apply
Applications under the 2021-22 to 2025-26 guidelines closed on 31.12.2025 (cl. 4.1(i)).
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.