The Centre has issued revised guidelines for the Waste-to-Energy (WtE) Programme under the National Bioenergy Programme.
These revisions aim to foster 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 both the private and public sectors.
Under the new framework, the Ministry of New and Renewable Energy (MNRE) 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 the improvement of waste management including stubble, industrial waste, and India’s broader goal of reaching net-zero emissions by 2070.
A key highlight of the revised guidelines is the improved system for releasing Central Financial Assistance (CFA). Considering the challenges the developers face 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. 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.
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.
The inspection process has also been refined to ensure greater credibility, transparency and accountability. The revised norms mandate joint inspections led by the 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 empanelled by MNRE. For developers not opting for advance CFA, only a single performance inspection is required, reducing procedural delays.
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.