India Biomass Co-Firing Hit Only 4 Percent of Mandated Requirement in FY25

Actual biomass consumption at India's coal power plants reached approximately 1.62 million metric tonnes in FY 2024-25, just 4 per cent of the 38.55 million metric tonnes required under the 5 per cent co-firing mandate, according to analysis drawing on Centre for Science and Environment data. The gap illustrates broader implementation shortfalls in India's circular economy in agriculture initiative, which projects a Rs 2 trillion market by 2050.

India generates an estimated 350 million tonnes of agricultural waste annually, with agricultural residues alone holding potential to generate over 18,000 MW of power. The GOBARdhan programme had 979 biogas plants operational across 51.4 per cent of districts as of January 14, 2026. The Crop Residue Management scheme channelled Rs 3,926.16 crore between 2018-19 and 2025-26 to Punjab, Haryana, Uttar Pradesh, NCT-Delhi and ICAR institutions, distributing over 324,000 machines including Happy Seeders. The Agriculture Infrastructure Fund sanctioned Rs 66,310 crore across 113,419 projects, mobilising total investments of Rs 1,07,502 crore including 2,454 cold storage facilities.

Only 68 power plants adopted biomass co-firing at all in FY25, with nearly 80 per cent of consumption concentrated in Haryana (625,694 tonnes), Punjab (358,979 tonnes) and Uttar Pradesh (349,835 tonnes). States including Andhra Pradesh, Karnataka, Rajasthan and Telangana reported negligible uptake despite substantial coal capacity and biomass availability. The Commission for Air Quality Management issued show-cause notices to six coal plants for FY25 non-compliance, with proposed environmental compensation totalling Rs 61.85 crore. Biomass pellet manufacturing capacity of roughly 30,000 tonnes per day across 680 plants is less than one-third the 105,610 tonnes per day required under the 5 per cent mandate.

Technical constraints compound the supply gap. Paddy straw's high silica content causes equipment breakdowns, and processing costs approximately 30 per cent more than mustard residue. Monsoon exposure can degrade calorific value by 15-20 per cent. Some boiler manufacturers warn that biomass use may void defect liability periods. The government benchmark price of Rs 2.3 per 1,000 kcal is reportedly being undercut through reverse bidding to Rs 1.8, undermining supplier viability. Analysts argue that the biomass co-firing case illustrates a broader lesson for India's circular agriculture agenda: infrastructure design alone does not ensure adoption, and transparent monitoring with consistent enforcement determines whether ambitious targets translate into measurable environmental outcomes.

Key figure — Actual biomass co-firing in FY25 reached ~1.62 million tonnes, just 4% of the 38.55 million tonne mandate