Page 52 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

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 hrs continuous operation would suffice this purpose.

Recognizing the urgent need to address air pollution, especially from stubble burning in northern India,
the new guidelines include a provision allowing biomass pellet producers in Delhi, Punjab, Haryana, and
NCR districts of Rajasthan and Uttar Pradesh to choose the most beneficial support scheme, either from
MNRE or CPCB.

These revisions will not only support the smooth implementation of the biomass programme and timely
delivery of approved financial support to commissioned plants, but also encourage the sector to establish
more biomass-based plants. This would ultimately help in addressing the menace of crop residue burning
and ensure sustainable management of agricultural waste.

Overall, the updated guidelines will make it easier for businesses to adopt biomass technologies, provide
financial incentives for efficient operations, and support India's clean energy efforts, all while promoting
practical, business-friendly solutions to waste management and pollution reduction.

Revised Guidelines for Waste-to-Energy Projects to Enhance Performance Monitoring and Speedier CFA
Disbursal

The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Waste-to-Energy
(WtE) Programme under the National Bioenergy Programme. These revisions aim to foster a more
efficient, transparent, and performance-oriented ecosystem for Bio Waste to Energy deployment in India.
By simplifying procedures, expediting financial assistance, and aligning support with plant performance,
the updated guidelines are designed to significantly enhance the ease of doing business for private as well
as public sector.

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 of CBG, Biogas & Power. These changes align well with improvement of waste management
including stubble, industrial waste, and India’s broader goal of reaching net-zero emissions by 2070.

A key highlight of the revised guidelines is the improved system for releasing Central Financial Assistance
(CFA). Considering the challenges faced by the developers to achieve 80% generation, flexible provisions
have been made in the Scheme for release of CFA based on plant performance. Previously, companies
had to wait until the entire Waste-to-Energy project attains 80% generation to receive support. Moreover,
as per the revised guidelines, there is a provision to release the CFA in two stages. Based on performance
of the projects, 50% of total CFA will be released after obtaining the Consent to Operate certificate from
State Pollution Control Board, against the bank guarantee, while the balance CFA would be released after
achieving the 80% of the rated capacity or the maximum CFA eligible capacity, whichever is lesser.

In notably, even if a plant does not achieve 80% generation for above both conditions during performance
inspection, provision is made for pro-rata based disbursement based on the percentage output. However,
no CFA will be given if the PLF is <50%.

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