Turning Agricultural Waste into Energy: MNRE’s Support for Biomass Briquettes and Pellets

India’s energy demand is rapidly increasing, making clean alternatives like biomass briquettes and pellets crucial. Although solar and wind energy get more attention, biomass briquettes and pellets offer a practical and eco-friendly substitute for coal. The Ministry of New and Renewable Energy (MNRE) supports their production and use through various schemes, helping farmers, industries, and rural communities adopt sustainable energy solutions for a greener future.

Understanding the Central Government Subsidy Scheme for Manufacturing of Briquettes & Pellets and Promotion of Biomass (Non-Bagasse) Based Cogeneration in Industries 

In today’s era of clean energy and sustainable innovation, every businessman is searching for the next big opportunity that’s both profitable and eco-friendly. And here it is – the scheme to support the Manufacturing of Briquettes & Pellets and promotion of Biomass (non-bagasse) based Cogeneration in Industries. Yes, the name is long enough to make you need a coffee break midway, but the benefits? Absolutely worth it! 

The Scheme in a Nutshell (Or Maybe a Briquette!)

This program offers Central Financial Assistance (CFA) to help entrepreneurs set up: 

• Briquettes and Pellet Manufacturing Units.
• Biomass (non-bagasse) Cogeneration Projects in industries. 

It’s valid until 31st December 2025, so if you’ve been sitting on an idea in this space, consider this your friendly wake-up call. 

Here’s what financial support looks like: 

In simple terms: bigger, cleaner energy  = bigger support. The government is literally rewarding you for helping the environment.

Who Can Apply? 

This isn’t a VIP-only club. A wide range of entities can apply: 

• Companies registered under the Companies Act 

• Partnerships, Proprietorships, and Cooperatives 

• Public sector and government-owned companies  

The minimum project size is 1 MTPH for briquette/pellet units and 0.5 MW for cogeneration plants. Think of it as the “entry ticket” to this green business carnival.

How to Apply – the Route Map  

1. Apply online before  31.12.2025.
2. Get in-principal approval from the Ministry. 
3. Once approved, you have-
   12 Months to start a briquette/pellet plant or,
   24 Months to begin biomass cogeneration project 
4. After commissioning, your plant will go through a performance inspection within 18 months. 
5. Finally, submit your CFA claim within 3 months of inspection. 

In short, it’s a clear process:

APPLY → APPROVE → INSTALL →PERFORM →GET REWARDED 

What Makes this Scheme a Boon for Entrepreneurs? 

This initiative isn’t just about subsidy- it’s about building the next generation of green industrial entrepreneurs. 

Here’s what makes it truly special: 

• Low Entry Barrier: Even small entrepreneurs can start with a 1 MTPH plant. 

• High Demand: Industries are shifting to eco–friendly fuels. 

• Stable Returns: Demand for biofuels is steady year-round. 

• Government Subsidy: Financial assistance in terms of subsidy 

• Sustainability Edge: Your business helps India move closer to its energy goals. 

So, if you’ve been planning to enter renewable energy manufacturing, this is one of the rare schemes where both profit and purpose shake hands. 

FAQs 

1. What exactly is this scheme?

This is a government support plan to help people set up briquette or pellet units. The idea is to make use of farm waste instead of burning it and to promote clean energy. 

2. Who can benefit from it?

Anyone who wants to start or already runs a small or medium-sized unit in the biomass fuel field can apply — individuals, firms, or companies. 

3. What help do we actually get?

The government gives financial help, like a subsidy on machinery or interest support on loans, so the starting cost becomes lighter. 

4. Is there any last date to apply?

Yes, you can apply till 31st December 2025. After that, it may not continue, so better not to delay. 

6. What’s the difference between a briquette and a pellet?

Briquettes are bigger blocks used in boilers or kilns, while pellets are small and mostly used for domestic or small-scale heating. 

7. How much investment will it take?

It depends on your plant size and machinery. Small units can start with less, and subsidy helps a lot in reducing the total cost. 

8. Do I need any clearances?

Yes, basic permission from the local pollution board is needed, since it’s related to biomass and fuel activity. 

10. What’s the main advantage of doing this?

Less pollution, good returns, government support, and you’ll be part of India’s move toward cleaner energy.

Conclusion – Turn Waste into Wealth 

The beauty of this scheme lies in its simplicity — it converts agricultural waste into wealth and entrepreneurs into environmental change-makers. Every briquette or pellet you produce replaces a chunk of coal, reduces carbon emissions, and earns you financial support from the government.

The clock is ticking till 31st December 2025, so if you plan to set up your own biomass-based venture, the best time was yesterday; the second-best time is now.

At SDS Fin Advisory LLP, we help transform your green business ideas into successful ventures with complete guidance in project finance, machinery loans, and government subsidy support.

So act fast — light up your entrepreneurial spark, not your agricultural waste!