Page 51 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

All the State Governments / UT Administrations have also been advised by the Commission to widely
disseminate these Directions amongst all stakeholders to ensure that only the permitted buses are
destined for Delhi, beyond 31.10.2026.

Restrictions imposed vide Direction Nos. 78 and 81 shall, however, continue to be binding for the inter-
city public transport bus services to Delhi-NCR.

MNRE Notifies Key Revisions in Biomass Programme Guidelines

The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Biomass
Programme under Phase-I of the National Bioenergy Programme, applicable for the period FY 2021–22 to
2025–26. These amendments aim to promote cleaner energy solutions, ease of doing business, and
accelerate the adoption of biomass technologies across India.

Under the new framework, Ministry 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. These changes align well with improvement of stubble management and India’s broader goal
of reaching net-zero emissions by 2070.

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.

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.

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%,
will receive full financial assistance, while below 80% 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% of
rated capacity measured over a period of three consecutive days, taking average 16 Hrs per day. However,

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