The Ministry of New and Renewable Energy (MNRE) in association with Indian Institute of Science, Bangalore has estimated that about 500 million tons of agricultural and agro-industrial residues are being generated annually in the country. About seventy percent of these residues are used as fodder, as fuel for domestic and industrial sectors and for other economic purposes. About 120-150 million tons of surplus agro industrial and agriculture residues per year could be surplus for power generation.
MNRE is promoting efficient utilization of biomass like agricultural and agro-industrial residues for power generation in the country. Projects based on biomass combustion and biomass co-generation technologies with a total capacity of over 3,700 MW have been set up in the country as on 31st January 2014.
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