On 11 of May 2018, the government of India adopted the Scheme to Support Promotion Of Biomass-Based Cogeneration In Sugar Mills And Other Industries In The Country (Up To March 2020).
The programme will provide a Central financial Assistance (CFA) for projects utilizing biomass like bagasse, agro-based industrial residue, crop residues, wood produced through energy plantations, weeds, wood waste produced in industrial operations, etc. Municipal Solid Waste is not covered under the programme.
Central financial Assistance (CFA) will be provided at the rate of Rs.25 Lakh/MW (for bagasse cogeneration projects) and Rs.50 Lakh/MW (Nonbagasse Cogeneration projects) under the scheme. The CFA will be back-ended and will be released in one instalment after successful commissioning and commencement of commercial generation and performance testing of the plant. The CFA will be released to the term loan account to reduce the loan component of the promoter.