Revised guidelines under National Bioenergy Programme aim to boost clean energy from industrial and agro waste

In a major push for sustainable waste management and decentralised energy production, the Ministry of New and Renewable Energy (MNRE) has rolled out revised guidelines under its Waste-to-Energy (WtE) Programme, designed to make it easier for both public and private players – particularly MSMEs – to set up and operate biogas, compressed biogas (CBG), and power generation plants using urban, industrial, and agro-waste.

The new framework, part of the broader National Bioenergy Programme, simplifies approval processes, cuts red tape, and ties financial assistance more directly to the actual performance of the WtE plants. MNRE officials say the revisions are aimed at ensuring a more “efficient, transparent, and performance-oriented ecosystem” for bioenergy deployment in India.

One of the most significant changes introduced is a revamped mechanism for disbursing Central Financial Assistance (CFA). Under earlier norms, developers had to wait until a plant consistently reached 80% of its rated capacity before becoming eligible for government support. The revised guidelines now allow the CFA to be released in two stages:

Stage 1: 50 per cent of the eligible CFA will be released after the plant secures a ‘consent to operate’ certificate from the State Pollution Control Board, against a bank guarantee.

Stage 2: The balance will be provided once the plant achieves 80 per cent of its rated capacity or the maximum eligible capacity, whichever is lower.

Recognising that many developers face practical challenges in reaching this benchmark, MNRE has introduced a pro-rata disbursement model—allowing partial CFA based on actual performance levels, as long as the plant operates above 50 per cent of its capacity. No CFA will be granted for plants running below that threshold.

“These changes acknowledge ground realities and offer financial flexibility during the critical early months of plant operation,” an MNRE official said.

In another move aimed at cutting delays, the inspection process has been redesigned to improve transparency and credibility. Joint inspections will now be conducted by the National Institute of Bio-Energy (SSS-NIBE)—an autonomous body under MNRE—alongside either State Nodal Agencies (SNAs), Biogas Technology Development Centres (BTDCs), or other empanelled agencies. For projects not seeking advance CFA, the requirement has been reduced to a single performance inspection.

Additionally, developers now have more flexibility to claim CFA within 18 months from the date of commissioning or from the date of in-principle approval—whichever is later—giving them a longer operational runway.

The updated norms are also aligned with India’s larger net-zero ambitions and efforts to tackle the stubble burning crisis and industrial waste overload. By boosting the domestic production of biogas and CBG, the government hopes to reduce dependence on fossil fuels while offering a scalable solution to organic waste disposal.

By easing compliance norms and improving access to government support, MNRE’s new rules are expected to benefit smaller players who often struggle with paperwork and long approval timelines. Experts believe the move could lead to a stronger pipeline of bioenergy projects, especially in semi-urban and rural areas where waste is abundant but underutilised.