Maharashtra Mandates 5–7 Percent Bamboo Biomass Blending in Thermal Power Plants

Maharashtra has mandated that all public and private thermal power plants in the state blend 5–7 per cent bamboo-based biomass or charcoal with coal starting December 2, 2025.

The requirement, notified under the new Maharashtra Bamboo Industry Policy, 2025, marks the first time bamboo has been formally integrated into the state’s energy mix. Officials said Maharashtra has significant bamboo-growing potential, even though production has been declining in recent years.

The blending mandate is one of the most significant interventions under the policy, aimed at cutting emissions from coal-based power generation while creating a new industrial market for bamboo growers. The government has allocated INR 1,534 crore for the first five years of the policy period (2025–2030) and approved a wider INR 11,797 crore incentive framework over its 20-year lifecycle to support the transition.

Bamboo, often referred to as 'green gold,' is among the world’s fastest-growing renewable biomaterials. It absorbs large quantities of carbon dioxide, helps restore degraded soils and requires far fewer inputs than timber or agricultural energy crops. The state government is banking on these characteristics to position bamboo as a low-emission substitute in industrial combustion.

Officials said the shift to bamboo biomass is expected to cut lifecycle emissions from coal plants, reduce dependence on fossil fuels, enable co-firing without major infrastructure changes and lower the carbon intensity of state utilities, in line with Maharashtra’s climate goals and India’s broader decarbonisation commitments.

While India has been encouraging biomass co-firing in coal plants, Maharashtra is among the first states to specify a bamboo-only component, citing its abundance and rapid regeneration. The government expects the mandate to spur an entire value chain, from plantation and harvesting to processing, pelletisation and charcoal production. Districts such as Gadchiroli, Chandrapur, Satara, Kolhapur and Nashik are expected to develop into major production hubs.

According to policy estimates, the initiative could create around five lakh direct and indirect jobs across cultivation, processing and manufacturing. The state also anticipates growth in bamboo-based industrial clusters, stronger farmer producer organisations, expanded contract farming and increased activity among MSMEs involved in biomass and biochar production.

By replacing a portion of coal with bamboo biomass, Maharashtra hopes to attract global green investment and position itself as a key player in the emerging bamboo-based carbon credit market, which the policy seeks to formalise.