BanglaInfo.in · Biomass Industry Desk
Biomass Guide 2026: Pellet Roadmap
From the MNRE subsidy to thermal plant tenders — every step of the biomass pellet industry, with verified figures and scam warnings, for West Bengal investors. Content is written in Bengali.
At a Glance: The Business Math
Apply only on official portals · No agent's "guarantee" · Last verified: October 2026
With 5–10% biomass co-firing mandatory at every coal-fired thermal power plant, pellets are now a demand-guaranteed industry — and West Bengal's paddy straw and mustard stalks are its raw material. But the math comes before the machinery: the subsidy rules, the sourcing chain, the tender conditions — one mistake can sink a ₹50 lakh project. This pillar organises the whole process into five sections: MNRE Subsidy, Plant Setup & Finance, Thermal Tenders, Raw Material Sourcing and Bio-Gas & CBG.
Every figure is marked as approximate per official notifications and market rates, and every guide carries a scam warning — because fraud in the name of "subsidy and tender guarantees" is most rampant in exactly this sector.
MNRE Subsidy (CFA)
The exact math of the capital subsidy under the National Bioenergy Programme — ₹21 lakh/TPH for non-torrefied and ₹42 lakh/TPH for torrefied pellets, the BioURJA application, DPR and In-Principle approval steps.
Plant Setup & Finance
The ₹40–60 lakh breakdown of a 1 TPH plant, the hammer mill–rotary dryer–pellet press machinery list, WBSEDCL transformer load, bank loans (CGTMSE) and when the capital pays back — full ROI math.
Bank Loans for Biomass Pellet Business — Project Finance, CGTMSE & Fraud Alerts
Complete Bengali guide to financing a ₹50 lakh–2 crore biomass pellet project — term loan vs working capital, DPR & CFA's role, CGTMSE collateral protection and the full list of pellet/tender scams.
Read1 TPH Biomass Pellet Plant Cost, Machinery & ROI Breakdown (2026)
Full Bengali breakdown of a 1 TPH biomass pellet plant — machinery list, ₹40–60 lakh cost split, power load & WBSEDCL transformer, production cost, selling price and ROI math.
ReadTorrefied vs Non-Torrefied Pellets — Which Plant Earns More?
Torrefied vs non-torrefied biomass pellets compared in Bengali — GCV, moisture, MNRE subsidy (₹42 vs ₹21 lakh/TPH), machinery cost, market prices and which plant type suits which entrepreneur.
ReadThermal Plant Tenders
The complete sales pipeline to thermal power plants under the SAMARTH mission's mandatory 5–10% co-firing rule — SAMARTH/GeM registration, bidding math and West Bengal's supply gap.
Bio-Gas & CBG (Bio-CNG)
Compressed Bio-Gas plants are the big-capital game — a 15-year OMC LOI buy-back, up to ₹10 crore MNRE subsidy, GOBARdhan/BioURJA registration, and the feedstock, land and consent rules.
Bio-CNG Plant Cost, Feedstock, Land and WBPCB Consent — the Full Compliance Guide
Bengali guide to CBG (bio-CNG) plant capex breakdown, digester and purification technology, long-term feedstock contracts, land and water needs, WBPCB Consent to Establish/Operate, and a compliance checklist.
ReadMNRE CBG Plant Subsidy — Up to ₹10 Crore CFA via GOBARdhan & BioURJA
Bengali guide to MNRE's up-to-₹10-crore CFA for CBG/bio-CNG plants under the Waste-to-Energy programme — subsidy math, eligibility, GOBARdhan unified registration, BioURJA application steps and the programme-window caution.
ReadGetting a CBG Plant LOI Under SATAT — the Complete OMC Buy-Back Process
Step-by-step Bengali guide to securing a Letter of Intent from IOCL/BPCL/HPCL for a CBG (Bio-CNG) plant under SATAT — eligibility, DPR, GOBARdhan registration, EOI, bank guarantee and the long-term commercial agreement.
ReadRaw Material Sourcing
Raw material is the plant's lifeline — the four-step field-to-plant cost chain, baling and storage, farmer and FPO contracts, and surviving the between-season gap.
Frequently Asked Questions
How much capital does a biomass pellet business need?
Roughly ₹40–60 lakh for a 1 TPH (ton/hour) plant, excluding land — machinery ₹30–55 lakh, shed and civil works ₹8–15 lakh, plus ₹15–25 lakh for a WBSEDCL transformer. Torrefied pellets push the project to ₹80 lakh–1.2 crore.
What is the MNRE subsidy and how is it claimed?
₹21 lakh per TPH for non-torrefied pellets (capped at about ₹1.05 crore or 30% of machinery cost) and ₹42 lakh per TPH for torrefied. It is back-ended: you build and commission the plant on a bank loan, pass the specified performance test, and then the CFA is disbursed. Applications go through the BioURJA portal, and In-Principle approval must be obtained before purchasing machinery.
Where do the pellets get sold?
Thermal power plants are the biggest buyers — under the SAMARTH mission, 5–10% biomass co-firing is mandatory, so NTPC, DVC and WBPDCL (Kolaghat, Bakreswar, Sagardighi, Santaldih, Mejia) issue regular tenders. Tea gardens, boilers and hotel-bakery buyers form a cash-paying local market alongside.
What is the biggest risk in this business?
Not machinery — raw material and cash flow. Building a continuous sourcing chain for 7,000+ tonnes of straw and stalks across seasons, and surviving the 60–90 day payment cycles of thermal plants: if these two aren't planned first, even a profitable plant stops running.
Should I trust an "MNRE agent" or "tender guarantee" offer?
Never. Subsidy applications are filed by you on the BioURJA portal and tenders are open bids — no agent can guarantee either, and no fee is ever paid via UPI or a personal bank account. If defrauded, report to the 1930 helpline or cybercrime.gov.in.
Work out the capital and loan math first
See MSME loans (CGTMSE), the solar pillar and other business guides together.
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