The Ministry of New and Renewable Energy has updated its Waste to Energy Scheme Guidelines, with the revised rules coming into effect on June 27, 2025. These changes are aimed at making it easier for developers to implement projects that generate biogas, bioCNG, power, or syngas from various types of waste, including urban, industrial, and agricultural waste. The updated guidelines apply to projects sanctioned under earlier guidelines dated November 2, 2022, February 28, 2020, and July 30, 2018.
One major change involves plant performance testing. Waste-to-energy plants must now operate for at least three consecutive months and demonstrate continuous operation for 24 hours at an average of 80% of rated capacity. Earlier, this continuous operation period was 72 hours. For bio-methanation plants, the digester must now run continuously for 72 hours as a new performance benchmark.
The revised guidelines also outline changes in how Central Financial Assistance (CFA) is released. Fifty percent of the CFA will be given after the project receives a Consent to Operate (CTO) certificate from the State Pollution Control Board, and the balance will be disbursed once the plant achieves 80% of its rated capacity for 24 hours. If performance falls between 50% and 80%, the CFA will be released on a pro-rata basis, but no CFA will be provided if the plant operates below 50%. All CFA claims must be made within 18 months of commissioning or the date of in-principle approval.
The performance inspection process has also been clarified. It must take place within 18 months of commissioning or in-principle approval, whichever is later. Developers can select from agencies such as State Nodal Agencies, SSS-NIBE, or BTDCs to carry out inspections. Joint inspection teams must submit reports twice—once before each phase of CFA release—unless the developer has not opted for advanced CFA, in which case one report is enough. The Minister of New and Renewable Energy has the authority to relax any provision in these guidelines.
