MNRE Subsidy for Biomass Briquettes and Pellet Business

National Bioenergy Program of the Ministry of New and Renewable Energy of the Government of India has implemented the Biomass Program, “A Scheme to Support Promotion of Manufacturing of Briquettes & Pellets Industries in the Country”.This program aims to support the creation of industries that manufacture briquettes and pellets, which are renewable energy sources made from biomass.

To further accelerate this transition, the Ministry of New and Renewable Energy (MNRE) has launched the National Bioenergy Program, which includes “A Scheme to Support Promotion of Manufacturing of Briquettes & Pellets Industries in the Country”. This initiative offers significant government subsidies to entrepreneurs planning to establish or expand biomass-based energy ventures.

What Is the MNRE Biomass Program?

The MNRE Biomass Program under the National Bioenergy Mission aims to reduce dependency on fossil fuels and promote the production and use of biomass fuels like briquettes and pellets. These fuels are made from agricultural and forestry residues such as paddy straw, sawdust, bagasse, and other organic waste, which otherwise often go unutilized or contribute to pollution.

The scheme provides financial assistance and capital subsidies to help set up briquette and pellet manufacturing units across the country. The primary goal is to encourage private sector participation in the bioenergy ecosystem and support India's commitment to sustainable development.

Key Features of the MNRE Subsidy Scheme

**Capital subsidy for setting up new manufacturing units or expanding existing ones

**
**Support for technology upgrades, automation, and high-efficiency machinery

**
**Eligibility for MSMEs, startups, and large enterprises

**
**Focus on rural and semi-urban areas to boost local employment.

**
**Encouragement of Waste to Energy practices by using agricultural waste as raw material

**

To avail of these benefits, entrepreneurs must have a properly structured business plan, including Udyam Registration, income tax return filing, and a well-prepared Project Report for Bank Loan or Feasibility Project Report.

Why Biomass Briquettes and Pellets?

**Eco-Friendly: 100% renewable and carbon-neutral energy source

**
**Affordable: Cheaper than coal, diesel, and LPG

**
**Abundant Raw Material: India generates millions of tons of agro-waste annually

**
**Government Support: Strong policy push for bioenergy under MNRE and state nodal agencies

**
**Wide Market: Used in boilers, power plants, cooking units, and industrial heating systems

**

Whether you’re applying under PMEGP, CMEGP, or seeking a Mudra Loan, a briquette/pellet manufacturing project fits well with government goals and is highly fundable.

Required Documentation for Subsidy and Loan

To access MNRE’s subsidy and secure institutional finance, proper documentation is essential. This includes:

**Project Report for Bank Loan: Outlines business model, plant capacity, cost estimates, and financial viability

**
**Detailed Project Report for Bank Loan: Covers technical and operational details, break-even analysis, and funding structure

**
PMEGP Project Report / CMEGP Project Report: For entrepreneurs applying through KVIC or state agencies
**Mudra Loan Project Report: Suitable for small-scale pellet or briquette units

**
**Feasibility Project Report: Assesses market demand, competition, raw material availability, and return on investment

**
**Income Tax Return Filing: Shows financial discipline and eligibility

**
**Udyam Registration: Required to qualify as an MSME and access most subsidies

**

At Sharda Associates, we help you prepare all these reports with 100% customization, ensuring compliance with both financial institutions and MNRE norms.

Location-Specific Subsidies and Benefits

In addition to MNRE’s central support, several state governments offer additional incentives for setting up biomass briquette and pellet plants, such as:

**Electricity duty waivers

**
**Stamp duty concessions

**
Interest subsidies
**Land acquisition support in industrial zones

**

We ensure to identify and apply for the most current and relevant subsidy schemes based on your project location to get the maximum benefit.

Conclusion

The MNRE’s National Bioenergy Program is more than just a policy—it’s a gateway to building a profitable and eco-conscious business. With the right planning, documentation, and timely action, entrepreneurs can leverage government subsidies to set up biomass briquette and pellet manufacturing units with reduced capital burden and strong market demand.

Whether you’re preparing a PMEGP Project Report, Mudra Loan Project Report, or a complete Detailed Project Report for Bank Loan, our expert team at Sharda Associates is here to guide you through every step, from registration and compliance to financial assistance and subsidy claims.

Switch to a green business model today and power the future with biomass.

Biomass Briquettes & Pellets Business Opportunity

###

Explore new opportunities to supply biomass briquettes in India. Government initiatives, especially under the Ministry of Power, are driving this demand. Demand is growing as the Government supports clean energy. Learn about a great chance to be a part of the Biomass Briquette Business in INDIA. The demand for these eco-friendly fuel sources is increasing every day, making it a promising opportunity for you. This opportunity offers a sustainable and profitable investment.

What Are Biomass Briquettes and Pellets?

Biomass briquettes are solid fuel blocks made from organic waste such as sawdust, rice husk, groundnut shells, and sugarcane bagasse. Pellets are smaller and more uniform in shape, typically used in automated systems like pellet boilers or stoves.

Both serve as alternatives to coal, firewood, and LPG, and are widely used in industries and rural cooking systems.

###

Why Is It a Growing Opportunity in India?

India produces millions of tonnes of agricultural waste every year. At the same time, there is a rising demand for cleaner, low-cost fuels across industries.

This business opportunity is driven by:

**Easily available raw materials

**
**Strict pollution control norms

**
**Government support and subsidies

**
**Rising demand for alternative fuel in factories and homes

**

###

Benefits of Starting a Biomass Briquette or Pellet Unit

**Low raw material cost: Agricultural waste is cheap and abundant.

**
**High demand: Used in brick kilns, boilers, and power plants.

**
**Government subsidies are available: Reduce total investment cost.

**
**Eco-friendly product: Contributes to carbon neutrality.

**
**Quick return on investment: 12 to 18 months in most cases.

**

###

Government Subsidies and Financial Support

To promote green energy businesses, the Indian government offers financial assistance such as:

**Capital Subsidy by MNRE (Ministry of New & Renewable Energy) up to ₹45 lakh per MW.

**
**Viability Gap Funding (VGF) covering up to 20% of the project cost.

**
**Additional state-level subsidies in Madhya Pradesh, Maharashtra, Haryana, and others.

**
PMEGP, CMEGP, and Mudra Loans to help with initial capital and working costs.

To apply for these benefits, entrepreneurs must have:

**MSME (Udyam) Registration

**
[**Detailed Project Report (DPR)

**](https://shardaassociates.in/pmegp-loan-project-report-guide/)
**Machinery quotations

**
**Business bank account

**
**Proper land documents and identity proofs

**

###

What Do You Need to Start?

**Raw material sources such as sawdust, rice husk, or bagasse

**
**Machinery setu,p, including a briquetting or pelletizing machine and a dryer

**
**2000–3000 sq. ft. land or shed space

**
**Business registration and GST

**
**DPR and subsidy application

**

###

Profit Potential in 2025

Let’s look at a typical example:

**Total Setup Cost: ₹30–35 lakh

**
**Government Subsidy: ₹10–12 lakh

**
**Net Investment: ₹20–25 lakh

**
**Monthly Revenue: ₹1.5 to ₹2 lakh

**
**Break-even: 12–18 months

**

With energy prices rising and stricter environmental rules, this business is likely to grow fast in both urban and rural areas.

###

Conclusion

The biomass briquettes and pellets business is not just an eco-friendly solution — it's a growing business opportunity in India. With rising demand from industries, increasing pressure to reduce coal usage, and strong government support through subsidies and MSME schemes, this sector is ideal for green entrepreneurs.

Low raw material costs, easy availability of agricultural waste, and attractive subsidy schemes (₹10–45 lakh) make the business highly profitable. With proper planning, a well-prepared DPR, and registration under Udyam or Startup India, you can build a sustainable business that helps both the environment and your income.

MNRE Subsidy for Biomass Briquettes and Pellet Business

MNRE Subsidy for Biomass Briquettes and Pellet Business

What Is the MNRE Biomass Program?

The scheme provides financial assistance and capital subsidies to help set up briquette and pellet manufacturing units across the country. The primary goal is to encourage private sector participation in the bioenergy ecosystem and support India's commitment to sustainable development.

Key Features of the MNRE Subsidy Scheme

**Capital subsidy for setting up new manufacturing units or expanding existing ones

**Support for technology upgrades, automation, and high-efficiency machinery

**Eligibility for MSMEs, startups, and large enterprises

**Focus on rural and semi-urban areas to boost local employment.

**Encouragement of Waste to Energy practices by using agricultural waste as raw material

To avail of these benefits, entrepreneurs must have a properly structured business plan, including Udyam Registration, income tax return filing, and a well-prepared Project Report for Bank Loan or Feasibility Project Report.

Why Biomass Briquettes and Pellets?

**Eco-Friendly: 100% renewable and carbon-neutral energy source

**Affordable: Cheaper than coal, diesel, and LPG

**Abundant Raw Material: India generates millions of tons of agro-waste annually

**Government Support: Strong policy push for bioenergy under MNRE and state nodal agencies

**Wide Market: Used in boilers, power plants, cooking units, and industrial heating systems

Whether you’re applying under PMEGP, CMEGP, or seeking a Mudra Loan, a briquette/pellet manufacturing project fits well with government goals and is highly fundable.

Required Documentation for Subsidy and Loan

To access MNRE’s subsidy and secure institutional finance, proper documentation is essential. This includes:

**Project Report for Bank Loan: Outlines business model, plant capacity, cost estimates, and financial viability

**Detailed Project Report for Bank Loan: Covers technical and operational details, break-even analysis, and funding structure

PMEGP Project Report / CMEGP Project Report: For entrepreneurs applying through KVIC or state agencies

**Mudra Loan Project Report: Suitable for small-scale pellet or briquette units

**Feasibility Project Report: Assesses market demand, competition, raw material availability, and return on investment

**Income Tax Return Filing: Shows financial discipline and eligibility

**Udyam Registration: Required to qualify as an MSME and access most subsidies

At Sharda Associates, we help you prepare all these reports with 100% customization, ensuring compliance with both financial institutions and MNRE norms.

Location-Specific Subsidies and Benefits

In addition to MNRE’s central support, several state governments offer additional incentives for setting up biomass briquette and pellet plants, such as:

**Electricity duty waivers

**Stamp duty concessions

Interest subsidies

**Land acquisition support in industrial zones

We ensure to identify and apply for the most current and relevant subsidy schemes based on your project location to get the maximum benefit.

Conclusion

Whether you’re preparing a PMEGP Project Report, Mudra Loan Project Report, or a complete Detailed Project Report for Bank Loan, our expert team at Sharda Associates is here to guide you through every step, from registration and compliance to financial assistance and subsidy claims.

Switch to a green business model today and power the future with biomass.

Biomass Briquettes & Pellets Business Opportunity

What Are Biomass Briquettes and Pellets?

Biomass briquettes are solid fuel blocks made from organic waste such as sawdust, rice husk, groundnut shells, and sugarcane bagasse. Pellets are smaller and more uniform in shape, typically used in automated systems like pellet boilers or stoves.

Both serve as alternatives to coal, firewood, and LPG, and are widely used in industries and rural cooking systems.

Why Is It a Growing Opportunity in India?

India produces millions of tonnes of agricultural waste every year. At the same time, there is a rising demand for cleaner, low-cost fuels across industries.

This business opportunity is driven by:

**Easily available raw materials

**Strict pollution control norms

**Government support and subsidies

**Rising demand for alternative fuel in factories and homes

Benefits of Starting a Biomass Briquette or Pellet Unit

**Low raw material cost: Agricultural waste is cheap and abundant.

**High demand: Used in brick kilns, boilers, and power plants.

**Government subsidies are available: Reduce total investment cost.

**Eco-friendly product: Contributes to carbon neutrality.

**Quick return on investment: 12 to 18 months in most cases.

Government Subsidies and Financial Support

To promote green energy businesses, the Indian government offers financial assistance such as:

**Capital Subsidy by MNRE (Ministry of New & Renewable Energy) up to ₹45 lakh per MW.

**Viability Gap Funding (VGF) covering up to 20% of the project cost.

**Additional state-level subsidies in Madhya Pradesh, Maharashtra, Haryana, and others.

PMEGP, CMEGP, and Mudra Loans to help with initial capital and working costs.

To apply for these benefits, entrepreneurs must have:

**MSME (Udyam) Registration

[**Detailed Project Report (DPR)

**Machinery quotations

**Business bank account

**Proper land documents and identity proofs

What Do You Need to Start?

**Raw material sources such as sawdust, rice husk, or bagasse

**Machinery setu,p, including a briquetting or pelletizing machine and a dryer

**2000–3000 sq. ft. land or shed space

**Business registration and GST

**DPR and subsidy application

Profit Potential in 2025

Let’s look at a typical example:

**Total Setup Cost: ₹30–35 lakh

**Government Subsidy: ₹10–12 lakh

**Net Investment: ₹20–25 lakh

**Monthly Revenue: ₹1.5 to ₹2 lakh

**Break-even: 12–18 months