The Ministry of Power issued modification on 16.06.2023 to revise the biomass policy dated 08.10.2021 – and now it mandates 5% biomass co-firing in Thermal Power Plants (TPPs) from FY 2024-25. This obligation shall increase to 7% from FY 2025-26.
According to the information received from the Union Minister for Power and New & Renewable Energy R. K. Singh, the Government has taken many initiatives to ensure the availability and procurement of biomass pellets for co-firing in TPPs like, Finance Assistance Schemes by MNRE and CPCB have been issued for biomass pellet manufacturing units, Reserve Bank of India (RBI) has approved ‘Biomass pellet manufacturing’ as an eligible activity under Priority Sector Lending (PSL), Procurement Provision of Biomass Category has been created on GeM portal, Revised Model long term contract for Biomass supply was issued by Ministry of Power, Vendor database finalized and listed on SAMARTH website, awareness programmes & Advertisement Campaign were carried out, Provision of Udyam Aadhaar on National Single Window System, Bankable Model Project Report for Biomass Pellet Plants etc.
Further, the Ministry of Power through a policy Addendum dated 03-05-2023 has indicated the various types of different agro residues such as stubble/straw/stalk/husk, which are surplus and not being used as animal fodder for making the biomass pellets. This includes agro-residue obtained from crops like Paddy, Soya, Arhar, Gwar, Cotton, Gram, Jawar, Bajra, Moong, Mustard, Sesame, Til, Maize, Sunflower, Jute, Coffee, etc., as well as Groundnut Shell, Coconut Shell, Castor Seed Shell etc.
