MNRE’s Biomass-Based Cogeneration Program Extended by a Year

By District Energy posted 09-09-2020 14:08




The Ministry of New and Renewable Energy (MNRE) has extended the validity of its biomass-based cogeneration program.

The program has been extended until March 31, 2021, or until the recommendations of the 15th Finance Commission come into effect, whichever comes first. The program was set to end in March 2020.

In its notice, the MNRE said that the program to support the promotion of biomass-based cogeneration in sugar mills and other industries would be extended without any change in scope, nature, coverage, and without creating any additional posts.

The Ministry added that the details of the program components, implementation methodology, financial assistance, the release of funds, and monitoring mechanism would remain unchanged. The expenditure for this program will be met with the budget provisions under the bio-power Head.

When the project was announced in 2018, the Ministry said it would provide central financial assistance (CFA) for projects utilizing biomass like bagasse, agriculture-based industrial residue, crop residues, wood produced through energy plantations, weeds, and wood waste produced in industrial operations. It promised ₹2.5 million (~$33,727)/MW of CFA for bagasse cogeneration projects and ₹5 million (~$67,454)/MW for non-bagasse cogeneration projects.

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