National Bioenergy Programme (NBP)
Why it Matters?
The Ministry of New and Renewable Energy (MNRE) revised Phase-I Biomass Programme guidelines on 28 June 2025 to simplify procedures, incentivize efficient biomass operations, and boost India's clean energy transition with a focus on MSMEs, digital monitoring, and stubble management.
What You Should Know?
The Ministry of New and Renewable Energy (MNRE) launched the National Bioenergy Programme (NBP) on 2nd November 2022, with a total budget of ₹1,715 crore for two phases (FY 2021–22 to 2025–26).
Phase I of the programme has a budget outlay of ₹858 crore and includes three components: Waste to Energy Programme, Biomass Programme, and Biogas Programme.
The Waste to Energy Programme supports the generation of Biogas, Biomethane (bio-CNG), Electric Power, and Producer Gas/Syngas from urban, industrial, and agricultural waste/residues.
Central Financial Assistance (CFA) under Waste to Energy includes ₹4 crore per 4,800 kg/day of new Bio-CNG production, ₹0.75 crore per Megawatt (MW) for power from new biogas plants, with a maximum CFA of up to ₹10 crore per project.
The Biomass Programme provides CFA of ₹9 lakh per Tonne Per Hour (TPH) capacity for briquette/pellet manufacturing plants and ₹40 lakh per MW for non-bagasse-based cogeneration projects.
The Biogas Programme offers CFA of ₹9,800 to ₹70,400 per small biogas plant (1–25 cubic metre/day capacity), ₹35,000–₹45,000 per kilowatt (kW) for power generation, and ₹17,500–₹22,500 per kilowatt equivalent (kWe) for thermal applications.
20% additional CFA is provided for projects in the North Eastern Region (NER), Sikkim, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands, Lakshadweep, and for plants run by registered Gaushalas using cattle dung.
The programme aims to utilise rural biomass such as crop residues to reduce stubble burning, generate clean energy, and enhance rural income.
It contributes to Greenhouse Gas (GHG) emission reduction, women’s empowerment, and aligns with India’s Net-Zero Emissions target by 2070.
The CFA is linked to performance efficiency, rewarding plants operating above 80% of capacity and encouraging faster and reliable adoption of bioenergy technologies.
News:
The Ministry of New and Renewable Energy (MNRE) has revised guidelines under Phase I of the National Bioenergy Programme (2021–26) to promote biomass adoption and ease of doing business.
Key changes include simplified documentation, flexible sale agreements, and the use of IoT-based monitoring instead of costly SCADA systems.
Subsidies under Central Financial Assistance (CFA) are now performance-based, with full aid for 80%+ plant efficiency.
Inspection norms are eased, allowing verification within 18 months and with a 10-hour daily operation.
Pellet producers in Delhi, Punjab, Haryana, and NCR can choose between the MNRE or CPCB schemes.
The reforms aim to curb stubble burning, promote waste-to-energy, and align with India’s Net-Zero 2070 goals.