India Boosts Biomass Utilization with Revised CFA for Pellet Manufacturing Plants
This revision aims to support the promotion of briquette and pellet manufacturing, as well as biomass-based cogeneration in industries across the country.
July 24, 2024. By Abha Rustagi
Biomass is available in the form of forestry waste, residue from agricultural operations, processed waste from industry, and municipal/urban solid waste. Annual Biomass production in the Country is around 750 MMT, of which 228 MMT is surplus Biomass. IT can be utilized in various forms like producing Heat & Energy, Briquettes/Pellets, etc.
Initially launched in November 2022, the NBP runs from FY 2021-22 to 2025-26. One key program component is the Scheme to Support the Promotion of Manufacturing of Briquettes and Pellets and Biomass (Non-Bagasse) based Cogeneration in Industries. Previously, the CFA for briquette/pellet manufacturing plants was set at INR 9.0 lakhs per metric ton per hour (MTPH) of production capacity, with a maximum of INR 45.0 lakhs per project.
However, MNRE has now revised the rate of CFA w.e.f. July 16, 2024, for Pellet manufacturing plants with the incorporation of Torrefied Pellet manufacturing plant components. The CFA for a Non-Torrefied Pellet manufacturing plant is INR 21.0 lakhs/MTPH production capacity with a maximum of INR 105 lakhs per project and for a Torrefied Pellet manufacturing plant, it is INR 42.0 lakhs/MTPH production capacity with a Maximum INR 210 lakhs per project or 30 percent of the capital cost considered for plant and machinery of 1 MTPH plant, whichever is lower in case of both the components.
The revision of CFA will enhance the utilization of Biomass in the Country including the utilization of Paddy Straw in States like Punjab, Haryana, and Uttar Pradesh, and would contribute to Air Quality Management by avoiding stubble burning.
please contact: contact@energetica-india.net.
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