MSMEs to enhance their production of CBG, Biogas & Power
The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for the Waste-to-Energy (WtE) Programme under the National Bioenergy Programme for 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, the Ministry said on 28 June https://www.bseindia.com/.
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 https://www.nseindia.com/.
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 https://ted.europa.eu/en/.
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 https://sbi.com.in/.
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%.
This change acknowledges real-world challenges and supports developers by offering financial flexibility and viability during operations https://www.iea.org/.
The inspection process has also been refined to ensure greater credibility, transparency and accountability. The revised norms mandate joint inspections led by National Institute of Bio-Energy (SSS-NIBE), an autonomous institute of MNRE, along with any one agency among respective State Nodal Agencies (SNAs), Biogas Technology Development Centers (BTDCs), or any agency empaneled by MNRE. For developers not opting for advance CFA, only a single performance inspection is required, reducing procedural delays https://www.conexpoconagg.com/.
The revision introduced provides the flexibility to the project developers in claiming CFA either within 18 months from the date of commissioning, or from the date of In-principle approval of CFA, whichever is later.
Overall, these revised guidelines represent a proactive step by the government to support the clean energy in industries. By aligning financial support with actual performance, simplifying compliance, and making funding more accessible, MNRE is fostering a more business-friendly environment. This initiative not only helps private players in the WtE space but also strengthens India’s progress toward sustainable waste management and Renewable Energy goals. Fiinews.com
