Bioenergy to Play Pivotal Role in Decarbonising MSMEs: MoS MNRE and Power Shripad Yesso Naik
Bioenergy has moved from the fringes to a strategic pillar of India’s clean energy transition, with a critical role in decarbonising industrial process heat in the MSME sector, said Union Minister of State for New and Renewable Energy and Power, Shripad Yesso Naik, at a national workshop in New Delhi.
January 19, 2026. By Mrinmoy Dey
The Minister was delivering the keynote address at a national workshop on ‘Introduction and Adoption of Biomass for Green Steam and Heat Applications in MSMEs’, organised by the Ministry of New and Renewable Energy in collaboration with the German Agency for International Cooperation (GIZ) and Grant Thornton Bharat.
On the occasion, the Minister also jointly released the report titled ‘Decarbonising MSMEs: Use of Biomass for Green Steam and Heat Application’.
Naik further noted that bioenergy today extends far beyond electricity generation and contributes simultaneously to multiple national priorities, including energy security, rural livelihoods, waste management, pollution reduction and climate action. Highlighting the challenge of industrial decarbonisation, particularly in the MSME sector, he pointed out that while MSMEs contribute nearly one-third of India’s manufacturing output and employ millions, a significant share of their energy demand for steam and heat continues to be met through fossil fuels such as coal, furnace oil and pet coke. Transitioning this segment towards clean and renewable thermal energy, he emphasised, is therefore essential.
Emphasising that biomass-based green steam and heat solutions offer a practical, scalable and India-specific pathway, the Minister said that India’s abundant availability of agricultural residue, animal waste and municipal solid waste presents a unique opportunity to convert waste into value, reduce emissions and generate additional income for farmers and rural entrepreneurs.
He outlined the Government’s integrated approach through initiatives such as the National Bioenergy Programme, SATAT and GOBARdhan, which support biomass briquettes and pellets, non-bagasse-based cogeneration, industrial applications and decentralised solutions tailored to MSMEs, while also strengthening linkages with the National Green Hydrogen Mission.
Highlighting the significance of the report released during the workshop, the Minister said that it provides a data-driven, sector-specific roadmap for adopting biomass-based green heat and steam solutions across industries such as textiles, food processing, chemicals, foundries and pharmaceuticals. The report also brings out key policy and market enablers, including biomass deployment obligations, standardised steam supply agreements, biomass exchanges and strengthened supply-chain coordination, and is expected to serve as a valuable reference for policymakers, industry and financial institutions.
The Minister underlined that technology alone cannot drive transformation and called for close collaboration across the entire value chain, from farmers and FPOs supplying biomass to aggregators, logistics providers, boiler manufacturers, energy service companies, financiers and regulators. He stressed that MSMEs require confidence in fuel availability, pricing stability, operational reliability and supportive policies, and noted that platforms such as this workshop are critical for trust-building, knowledge-sharing and co-creation of solutions.
Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, highlighted that biomass-based applications have the potential to be deployed across the country. From municipal solid waste-to-energy projects and compressed biogas to decentralised biogas plants in rural areas, biomass solutions support livelihoods, promote decentralised energy access and strengthen rural value chains, making bioenergy a critical pillar of India’s clean energy transition, he said.
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