MNRE notifies revised guidelines for waste-to-energy projects

In a significant step towards promoting cleaner energy solutions and sustainable waste management, the Ministry of New and Renewable Energy (MNRE) has released revised guidelines under its Waste-to-Energy (WtE) Programme, which is a part of the National Bioenergy Programme. 

The updated framework aims to streamline operations, improve transparency, and encourage performance-linked incentives in the Waste-to-Energy sector across India.

The newly revised guidelines seek to ease procedural bottlenecks, promote higher efficiency in Compressed Biogas (CBG), biogas, and power generation, and better align with India’s net-zero emissions target for 2070.

Key Highlights & Simplified Procedures:

The Ministry has reduced paperwork and relaxed approval processes, particularly benefitting MSMEs and enabling quicker setup of biogas and CBG plants.

Performance-Based Financial Aid (CFA): Developers no longer need to wait for 80% generation to access full CFA.

Two-stage disbursement introduced: 50% of CFA released post "Consent to Operate" from State Pollution Control Board, against a bank guarantee. Remaining 50% after achieving 80% of rated capacity or maximum CFA eligible capacity, whichever is lower. Pro-rata CFA disbursement possible if output is below 80% but above 50%. No CFA will be provided if the plant’s performance is below 50% Plant Load Factor (PLF).

Streamlined Inspections for Credibility & Accountability: Joint inspections to be conducted by SSS-NIBE (National Institute of Bio-Energy) and either SNAs, BTDCs, or MNRE-empaneled agencies. Projects not opting for advance CFA require only one performance inspection, reducing delays.

Flexible Claim Timeline for CFA: Developers can now claim CFA within 18 months from the date of commissioning, or the date of in-principle approval of CFA, whichever is later.

A Boost for Green Energy & Waste Management

This policy shift reflects the government’s proactive stance in enhancing ease of doing business and supporting developers in the WtE ecosystem. The revised norms acknowledge ground-level operational challenges, providing financial viability and flexibility while encouraging faster deployment of projects.

Officials emphasized that the guidelines would play a critical role in managing agricultural residue, industrial waste, and municipal solid waste while reinforcing India’s journey towards a cleaner, energy-secure future.

With simplified norms, faster disbursement, and a performance-linked incentive structure, MNRE’s updated approach is expected to attract wider participation from both public and private sectors in the Waste-to-Energy space.