News Brief
Government Revises Waste-To-Energy Guidelines, Eases Approvals And Links Funding To Plant Performance—All About It
Paddy straw rolls at the CBG plant in Sangrur (@HardeepSPuri/Twitter)
The Ministry of New and Renewable Energy (MNRE) has issued revised guidelines for its Waste-to-Energy (WtE) Programme under the National Bioenergy Programme, aimed at significantly enhancing the ease of doing business for private as well as public sector.
The move aligns with India's clean energy and waste management goals.
The new guidelines focus on reducing bureaucratic hurdles, especially for micro, small, and medium enterprises (MSMEs), by simplifying paperwork and expediting approvals.
These changes are expected to accelerate the production of compressed biogas (CBG), biogas, and power from agricultural residue, industrial waste, and other bio-resources.
A major revision is the overhaul of the Central Financial Assistance (CFA) disbursal mechanism.
Earlier, support was released only after a waste to energy project reached 80 per cent generation capacity.
Under the new system, CFA will be disbursed in two stages:
First Stage: 50 per cent of the total eligible CFA will be released post-issuance of the "Consent to Operate" certificate by the State Pollution Control Board, against the bank guarantee.
Second Stage: The remaining 50 per cent will be released once the project attains 80 per cent of its rated or eligible capacity.
However, no CFA will be given if the Plant Load Factor is less tahn 50 per cent.
The inspection process has also been redesigned for greater accountability.
Joint inspections will now be led by the National Institute of Bio-Energy (SSS-NIBE) along with either State Nodal Agencies, Biogas Technology Development Centers, or other MNRE-empaneled agencies.
Projects not seeking advance CFA will only need to undergo a single performance inspection.
Further, project developers can now claim CFA within 18 months from either the date of commissioning or from the date of In-principle CFA approval—whichever is later—offering increased flexibility for planning and execution.
By linking financial incentives to actual performance and making regulatory processes more efficient, the ministry aims to foster a more business-friendly environment in India’s waste-to-energy sector.
The ministry noted that these reforms are a step towards achieving the country’s net-zero emissions target by 2070.
