MNRE Notifies Revised Guidelines for Waste-to-Energy Projects for Speedier CFA Disbursal
The Ministry of New and Renewable Energy (MNRE) has unveiled revised guidelines for the Waste-to-Energy Programme to streamline processes, link financial support to plant performance, and accelerate India’s bioenergy transition.
June 30, 2025. By Mrinmoy Dey
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 private as well as public sector, said the Ministry in a statement.
Under the new framework, Ministry 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 and Power. “These changes align well with improvement of waste management including stubble, industrial waste, and India’s broader goal of reaching net-zero emissions by 2070,” it said.
A key highlight of the revised guidelines is the improved system for releasing Central Financial Assistance (CFA). Considering the challenges faced by the developers to achieve 80 percent 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 percent 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 percent 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 percent of the rated capacity or the maximum CFA eligible capacity, whichever is lesser.
Notably, even if a plant does not achieve 80 percent generation for both the above 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 less than 50 percent.
“This change acknowledges real-world challenges and supports developers by offering financial flexibility and viability during operations,” it said.
It further added that the inspection process has also been refined to ensure greater credibility, transparency and accountability. The revised norms mandate joint inspections led by 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.
Overall, these revised guidelines represent a proactive step by the government to support the clean energy industries. By aligning financial support with actual performance, simplifying compliance, and making funding more accessible, MNRE is fostering a more business-friendly environment. This initiative will not only help private players in the WtE space but also strengthen India’s progress toward sustainable waste management and Renewable Energy goals.
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