MNRE Subsidy for Renewable Energy

Biogas & Biomass Subsidies

MNRE supports biogas and biomass projects to promote organic waste utilization and create sustainable energy from biological resources.

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Wind & Hybrid Systems Subsidies

MNRE provides incentives for wind energy and hybrid renewable systems that combine multiple clean energy sources for optimal performance.

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MNRE Subsidy for Briquettes, Pellets, Biochar, Charcoal & Activated Carbon

The Ministry of New and Renewable Energy (MNRE) provides Central Financial Assistance (CFA) for selected biomass-based energy projects. Briquette and pellet plants are eligible under the Biomass Programme. Biochar, charcoal and activated carbon units are not directly covered.

Pellet subsidy: the lower of the per-MTPH rate or 30% of eligible plant and machinery capital cost. The revised pellet rates apply to applications received on or after 16 July 2024.

Scheme availability: subsidies are subject to scheme availability. Confirm the current status on the BioURJA portal (biourja.mnre.gov.in) before applying.

Illustrative subsidy (briquettes and pellets, 1 to 5 MTPH)

*Indicative maximum before applying the 30% eligible machinery cost limit. Briquette subsidy is capped at ₹45 lakh per project.

Eligibility (briquette and pellet plants)

• Private and public limited companies, partnership and proprietorship firms, cooperatives and eligible government-owned entities.
• Minimum capacity of 1 MTPH (metric tonne per hour).
• Raw materials such as agricultural residues, paddy and wheat straw, mustard and cotton stalks, coconut shells and husk, sawdust, wood waste, rice husk and forest residues.
• Only new machinery and equipment are eligible. Bank-financed and self-funded projects both qualify.
• IoT or remote monitoring and a prescribed performance inspection by an authorised agency (such as SNA or SSS-NIBE).
• Projects using municipal solid waste, black liquor, slop, press mud and certain processed industrial wastes are excluded.

Documents to prepare

• Company incorporation certificate, partnership deed or proprietorship details.
• PAN, GST registration and Udyam Registration (if applicable).
• Land ownership or lease documents.
• Detailed Project Report (DPR), plant layout and process flow.
• Machinery quotations and technical specifications; installed capacity.
• Raw material availability and sourcing details.
• Project cost, means of finance and bank loan sanction (where applicable).
• Other documents prescribed by the current BioURJA application guidelines.

Other opportunities (not automatic subsidies)

• Briquettes and pellets: state industrial incentives.
• Biochar: carbon credits and agricultural or state-specific programmes.
• Charcoal: state industrial incentives.
• Activated carbon: MSME and state industrial incentives, and eligible energy-efficiency programmes.

These require separate eligibility checks. A biomass gasification or cogeneration component may follow a separate route, but that does not make charcoal or activated carbon machinery eligible.

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