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National Bioenergy Programme

Focus: GS II: Government policies and Interventions

Why in News?

Recently, The Ministry of New and Renewable Energy (MNRE), Government of India has notified the National Bioenergy Programme.

  • MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26. The Programme has been recommended for implementation in two Phases.


  • Bioenergy is renewable energy made available from organic materials derived from biological sources.
  • It is the energy derived from biomass such as bagasse, cotton stalk, coconut shell and wood, plants, etc. With global warming and growing concerns biomass can play a vital role especially in rural areas.

About National Bioenergy Programme:

  • The Indian Renewable Energy Development Agency (IREDA) will be the implementing agency for the programme.
  • IREDA will be paid a service charge of 1% of CFA to process applications, besides 1% for the CFA (minimum ₹50,000) for implementing, and monitoring the performance once the plants are commissioned.
  • It aims to produce biogas and bioCNG, and electricity from urban, industrial and agricultural waste and residues.
  • The government will offer financial assistance to project developers and pay service charges to implementing agencies, including inspection firms for commissioning the waste-to-energy plants.
  • It also comprises the biogas and biomass programmes.
  • Standard central financial assistance (CFA)  for the biogas projects will be ₹25 lakh for 12,000 cubic metre a day and maximum pegged at ₹5 crore.
  • Financial assistance of ₹75 lakh per MW for new biogas plants and ₹50 lakh per MW for existing units will be given.
  • If the waste-to-energy plants are set up in special category states, such as the North East, Himachal Pradesh, Sikkim, Jammu and Kashmir, Ladakh, Lakshadweep, Uttarakhand, and Andaman & Nicobar Islands, the eligible CFA will be 20% higher than the standard CFA pattern.
The National Bioenergy Programme will comprises of the following sub-schemes:
  • Waste to Energy Programme (Programme on Energy from Urban, Industrial and Agricultural Wastes /Residues) to support setting up of large Biogas, BioCNG and Power plants (excluding MSW to Power projects).
  • Biomass Programme (Scheme to Support Manufacturing of Briquettes & Pellets and Promotion of Biomass (non-bagasse) based cogeneration in Industries) to support setting up of pellets and briquettes for use in power generation and non-bagasse based power generation projects.
  • Biogas Programme to support setting up of family and medium size Biogas in rural areas.

December 2023