July 1, 2025

🏷️ Biomass Pellet Price Benchmarking in India (2023-24)

📜 Description

The Ministry of Power (MoP), Government of India has implemented region-specific benchmark pricing for non-torrefied biomass pellets to be used in co-firing at coal-based thermal power plants. This initiative supports a cleaner energy mix, reduces stubble burning, and promotes investment in biomass pellet manufacturing.


📊 Detailed Summary

🔹 Policy Objective

To establish a transparent and standardized price mechanism for biomass pellets to:

  • Promote long-term supply contracts
  • Boost pellet manufacturing capacity
  • Reduce GHG emissions from thermal power generation

🔹 Policy Reference

  • Modified Biomass Co-firing Policy: Issued 16 June 2023
  • Price Benchmarking Committee Formed: 22 June 2023
  • Applicable to: TPPs under NCR, Northern Region (excluding NCR), and Western Region

🔹 Benchmark Prices & Guidelines

RegionPrice (₹/1000 kcal)GCV Range (kcal/kg)Max Moisture (%)Effective From
NCR (Delhi, Haryana, UP)₹2.322800 – 3400Below 14%01 Sept 2023
Northern Region (ex-NCR)₹2.272800 – 4000Below 14%08 Nov 2023
Western Region (GJ, MP, MH, CG)₹2.242800 – 4000Below 14%08 Nov 2023

Note: Prices are excluding GST and transportation, and applicable at pellet plant site.


Accepted Biomass Materials

Only non-torrefied biomass pellets made from agro-residues and non-edible biomass are eligible:

  • Paddy straw / Rice straw
  • Sugarcane trash
  • Cotton stalk
  • Maize stalk
  • Wheat straw
  • Groundnut shells
  • Mustard husk
  • Bamboo residues
  • Castor seed shell
  • Corn cobs
  • Wood sawdust & chips (non-edible)
  • Napier Grass (high GCV & fast-growing)
  • Coffee husk, coconut shell (non-food grade)

Non-Accepted Biomass Materials

As per policy, the following are not allowed for pelletization and co-firing:

  • Edible biomass residues (e.g., food-grade oilseed husk, fruit peels)
  • Forest wood logs or tree-cut timber
  • Plastic or mixed municipal waste
  • Any chemically treated biomass
  • Hazardous or biomedical waste
  • Pellets with additives, binders, or heavy metals

Environmental compliance is mandatory. The biomass must be clean, untreated, and free from contaminants.


🔗 Related Government Resources


⚠️ Disclaimer

This information is based on official notifications dated 23 August 2023 and 08 November 2023 by the Ministry of Power. The benchmark rates and guidelines are valid for one year from the date of effect and are subject to periodic revision. For latest updates and policy documents, refer to the official MoP and SAMARTH portals.