Lok Sabha Question No. 2429 (UNSTARRED), answered on 2023-08-03
Subject: Manufacturing of Biomass Pellets
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Lavu Sri Krishna Devarayalu, Sunita Duggal, Hasnain Masoodi, Jagannath Sarkar, Brijendra Singh

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO. 2429

ANSWERED ON 03.08.2023

## MANUFACTURING OF BIOMASS PELLETS

2429. SHRI LAVU SRI KRISHNA DEVARAYALU

SHRIMATI SUNITA DUGGAL

SHRI HASNAIN MASOODI

SHRI JAGANNATH SARKAR

SHRI BRIJENDRA SINGH

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) Whether the Government has information on the number of entrepreneurs which availed financial subsidies and/ or benefit from Priority Sector Lending scheme to manufacture biomass pellets;
- (b) if so, the details thereof, State/ UT- wise and if not, the reasons therefor;
- (c) whether the Government also has information on the number of biomass pellet manufacturing units operational in the country;
- (d) if so, the details thereof, State/ UT- wise and if not, the reasons therefor;
- (e) whether the Government proposes to promote establishing such units in States which produce significant agricultural residue in terms of stubble and if so, the details thereof, State/UT-wise including Haryana;
- (f) whether the Government has conducted any assessment to envisage the overall impact of co-firing of biomass pellets with coal in thermal power plants in terms of reduction of air pollution; and
- (g) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

- (a) & (b) Ministry of New and Renewable Energy has notified National Bioenergy Program to promote setting up of Bioenergy Projects including Pellet/Briquette manufactruring plants. Under this programme,  as on 31.07.2023, 76 applications have been received for availing Central Financial Assistance (CFA) for setting up of briquette/pellet manufacturing plants. The  statewise  details  of  these  applications  are  given  in Annexure-I. Out  of    these  76 applicants, 45  of  them  have  availed  lending  facility  from  various  Banks/Financial Institutions. Further, CFA for 12 applications has been sanctioned by the Ministry so far. This CFA shall be released only after successful performance inspection of the plant post commissioning.
- (c) & (d) As per information available, around 217 pellet manufacturers are located in different States of the country. The State/UT-wise list is given in Annexure-II.
- (e) The Government has taken various steps to promote establishment of biomass pellet manufacturing units across the country which, inter alia , include the following:
- (i) The Ministry of New & Renewable Energy has notified National Bioenergy Programme in  November,  2022  for  the  period  01.04.2021  to  31.03.2026.  This  programme  provides Central Financial Assistance for setting up of Bioenergy plants across all states in the country including  Haryana.  Under  the  Biomass  component  of  this  programme,  central  financial assistance of Rs. 9 lakh/TPH is granted to eligible applicants for setting up of briquette/pellet manufacturing plants with a capping of Rs. 45 lakhs per plant.

(ii) Central Pollution Control Board, Ministry of Environment, Forest and Climate Change has notified guidelines to provide one-time financial support for setting up of paddy straw based pelletisation and torrefaction plants in the NCT of Delhi, States of Punjab and Haryana and NCR districts of Rajasthan and Uttar Pradesh.

A maximum amount of Rs. 28 lakhs per ton plant production capacity per hour, or 40% of the capital cost considered for plant and machinery of a 1 TPH plant, whichever is lower, shall be given as one-time financial support by CPCB, subject to a maximum total financial support of Rs. 1.4 crore per proposal.

(f) & (g) Co-firing of biomass pellets in a thermal power plant (TPP) reduces the amount of coal required by the power plant. This leads to a reduction of carbon dioxide emissions as biomass is a renewable source of energy. It is estimated that each tonne of biomass co-fired in TPP, reduces the carbon-dioxide emissions by 1.2 tonnes. At 5% rate of biomass cofiring in TPPs, biomass pellets amounting to 35 Million Metric Tonne (MMT) would be required which would lead to CO2 reduction of approx. 42 MMT. This would also prevent about 47 MMT of raw stubble from being burnt in the field.

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Annexure referred to in reply to part (a) & (b) of the Lok Sabha Unstarred Question No. 2429 to be answered on 03.08.2023 on 'Manufacturing of Biomass Pellets'

State  wise  details  of  applications  received  for  availing  central  financial  assistance  for setting  up  of  briquette/pellet  manufacturing  plants  under  the  National  Bioenergy Programme (as on 31.07.2023)

| S.No.   | State          |   No. of Proposals received |
|---------|----------------|-----------------------------|
| 1       | Gujarat        |                          11 |
| 2       | Haryana        |                           4 |
| 3       | Karnataka      |                           1 |
| 4       | Madhya Pradesh |                          34 |
| 5       | Maharashtra    |                           9 |
| 6       | Odisha         |                           1 |
| 7       | Punjab         |                           2 |
| 8       | Rajasthan      |                          11 |
| 9       | Tamilnadu      |                           1 |
| 10      | Uttrakhand     |                           1 |
| 11      | West Bengal    |                           1 |
|         | Total          |                          76 |

Annexure-II Annexure referred to in reply to part (c) & (d) of the Lok Sabha Unstarred Question No. 2429 to be answered on 03.08.2023 on 'Manufacturing of Biomass Pellets' Number of biomass pellet manufacturers in the country, State/ UT-wise list

| S.No.   | States         |   Numbers of Pellet Manufacturers |
|---------|----------------|-----------------------------------|
| 1       | Punjab         |                                15 |
| 2       | Haryana        |                                 8 |
| 3       | Andhra Pradesh |                                 4 |
| 4       | Rajasthan      |                                20 |
| 5       | Uttar Pradesh  |                                28 |
| 6       | Madhya Pradesh |                                 7 |
| 7       | Delhi          |                                 7 |
| 8       | Gujarat        |                                30 |
| 9       | Maharashtra    |                                33 |
| 10      | Chattisgarh    |                                 3 |
| 11      | Jharkhand      |                                 4 |
| 12      | Assam          |                                 1 |
| 13      | Bihar          |                                 1 |
| 14      | Karnataka      |                                 8 |
| 15      | Orissa         |                                 9 |
| 16      | Telengana      |                                12 |
| 17      | West Bengal    |                                 7 |
| 18      | Kerala         |                                 4 |
| 19      | Tamil Nadu     |                                 9 |
| 20      | UK             |                                 5 |
| 21      | J&K            |                                 1 |
| 22      | Manipur        |                                 1 |
| Total   | Total          |                               217 |