The Ministry of Power’s National Mission on Use of Biomass in Coal Based Thermal Power Plants (SAMARTH Mission) has fundamentally shifted the energy landscape in India. As we navigate through 2026, the mandates have become stricter, and compliance is no longer optional. This article breaks down the current regulations and how power plants in Gujarat and beyond must adapt.
The Current Co-Firing Mandate (2026)
Initially starting at a modest 5%, the mandate for biomass co-firing in coal-fired thermal power plants has now firmly stabilized.
- Mandatory Requirement: All coal-based thermal power plants must co-fire a minimum of 5% to 7% biomass pellets with coal.
- Applicability: This applies to both public (NTPC, state gencos) and private sector power plants.
- Objective: To reduce carbon emissions, lower severe air pollution caused by stubble burning, and generate supplementary income for farmers.
Financial Incentives and Support
To ease the transition and build a robust supply chain, the government, through the Central Pollution Control Board (CPCB) and MNRE, provides several incentives:
1. Subsidies for Pellet Manufacturers: Financial assistance is provided for setting up biomass pellet manufacturing units, which helps keep the end-user price competitive.
2. Priority Sector Lending: Biomass manufacturing is recognized under priority sector lending by the RBI, ensuring easier credit access for the supply chain.
3. Long-term Contracts: Power plants are heavily encouraged to enter into long-term (7 to 10 years) procurement contracts with manufacturers like BBI, stabilizing market prices.
The Supply Chain Challenge
The biggest hurdle power plants face in meeting the 7% mandate is securing a reliable, year-round supply of high-quality, low-moisture pellets. Agricultural residue is seasonal, leading to supply fluctuations.
"A power plant cannot afford a boiler trip due to high-moisture or high-silica biomass. Consistent quality is just as critical as consistent quantity."
How Bharat Bio Industries Guarantees Compliance
At BBI, we solve the supply chain challenge for power generation units through our massive infrastructure in Gujarat:
- Massive Storage Capacity: We procure agricultural waste during the harvest season and store it in advanced, moisture-controlled warehouses, ensuring year-round production.
- Strict Quality Control: Our pellets are rigorously tested to ensure <10% moisture and <2% ash, preventing slagging issues in large-scale utility boilers.
- Scalable Logistics: We operate dedicated logistics to ensure just-in-time delivery for large bulk orders (500+ MT/month).
Looking Ahead
With the possibility of the mandate increasing to 10% in the coming years, securing a reliable pellet manufacturing partner is crucial. Non-compliance not only invites penalties but also impacts the plant's operational licenses and ESG ratings.
To discuss a long-term supply contract that guarantees your compliance, reach out to the BBI corporate sales team.