New biomass guidelines to boost bio-energy, ease of doing business

NEW DELHI — In a bid to promote cleaner energy solutions, ease of doing business and accelerate the adoption of biomass technologies across the country, the government on Saturday issued revised guidelines for the biomass programme.

The new norms have been released under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021–22 to 2025–26.

Under the new framework, the Ministry of New and Renewable Energy (MNRE) has simplified several processes, such as cutting down on paperwork and easing approval requirements, which will enable the industry especially MSMEs to enhance their production.

One of the major highlights of the revision is technological integration by enabling the use of IoT-based monitoring solutions or quarterly data submissions instead of expensive and high-tech systems like SCADA.

This cost-effective step promotes digital monitoring and accountability, especially for smaller business operators, said the ministry.

The guidelines also encourage significant simplification of documentation requirements. Developers of briquette and pellet manufacturing plants will no longer be required to submit number of documents related to clearance matters.

 “This change will save time, and promote ease of doing business,” according to the ministry.

In a move to enhance operational flexibility, the earlier requirement for a two-year briquette or pellet sale contract has been replaced with a general sale agreement. This change will allow project developers to respond more dynamically to market conditions without being constrained by long-term contracts.

The amended guidelines rules allow flexible selling of biomass products, meaning businesses no longer need long-term contracts to get started.

Furthermore, the subsidy disbursement mechanism under the Central Financial Assistance (CFA) component has been made performance-based and transparent. Projects that run efficiently, above 80 per cent, will receive full financial assistance, while below 80 per cent will receive on pro-rata basis.

The performance inspection period has been simplified. Earlier, it has to be done within a period of 18 months from the date of commissioning, but now, it can be carried out within 18 months period either from the commissioning date or from the date of In-principle approval, whichever is later.

Additionally, to cater on-ground operational challenges of developers, Secretary, MNRE may extend the time period.

During inspection, performance report was made on the basis of Operation Plant at an average of 80 per cent of rated capacity measured over a period of three consecutive days, taking average 16 hours per day.

 “However, now it has been reduced to just 10 hrs as the inspection process primarily aims to verify the claimed and operational capacities and inspection for 10 hours continuous operation would suffice this purpose,” said the ministry.