In a major push to catalyse India’s clean energy transition, the Ministry of New and Renewable Energy (MNRE) has unveiled revamped guidelines for its Waste-to-Energy (WtE) Programme, aiming to simplify processes, incentivise real performance, and encourage wider industry participation. The revised framework promises a more business-friendly environment for investors and developers in bioenergy, aligning with India’s larger sustainability agenda and its 2070 net-zero emissions target.
The updated guidelines are part of the National Bioenergy Programme and place strong emphasis on enhancing ease of doing business, particularly for micro, small, and medium enterprises (MSMEs). By cutting through bureaucratic delays and easing compliance obligations, the ministry seeks to stimulate investment in waste-to-energy plants that produce compressed biogas (CBG), biogas, and renewable power from agricultural, municipal, and industrial residues. One of the most significant reforms is the restructuring of the Central Financial Assistance (CFA) disbursal mechanism. Earlier, assistance was released only when plants achieved 80 per cent of their designed energy generation capacity—often causing financial stress during critical phases of operation. Under the new rules, financial support will now be provided in two phases, with 50 per cent released after the plant secures its “Consent to Operate” certificate from the respective State Pollution Control Board. The remaining 50 per cent will be granted once the project demonstrates performance at or above 80 per cent capacity.
Recognising the operational challenges faced by smaller entities, the government has introduced a pro-rata disbursal option. If a plant fails to hit the 80 per cent target but maintains a Plant Load Factor of at least 50 per cent, partial financial assistance will be made available proportionate to its output. Projects that fall below this threshold, however, will not be eligible for any CFA support. The inspection process has also undergone a revamp for increased accountability and transparency. In place of the earlier fragmented checks, joint inspections will now be carried out by the National Institute of Bio-Energy (SSS-NIBE) in collaboration with either State Nodal Agencies or MNRE-recognised institutions. Furthermore, project developers opting out of advance CFA can now complete the process with just one performance inspection, thereby reducing redundancy and costs.
In an effort to give developers greater flexibility, the government has extended the claim window for CFA to 18 months from the date of commissioning or the date of In-principle approval—whichever comes later. This shift acknowledges the practical challenges of project execution and aligns financial planning with realistic timelines. By linking incentives directly to energy output and operational reliability, the MNRE is sending a clear signal to the private sector: sustainability efforts must be backed by measurable results. The reforms not only promote cleaner technologies but also lay the groundwork for a circular economy, where waste becomes a source of clean energy rather than a liability.
As India looks to scale its renewable capacity, these performance-driven measures represent a shift from entitlement to accountability—potentially setting a precedent for other green sectors to follow.
