Biomass Co-firing Mandate in India: Pellet Specifications Power Plants Expect

Last updated: 1 November 2026 · By KSR Green Bharat Team

Key takeaways

• The co-firing mandate creates large, recurring, tender-based demand for agro-residue pellets.
• Specifications are strict and each consignment is tested on receipt.
• Pricing is linked to heat content, commonly expressed per 1,000 kcal.
• Supply consistency and quality – not just price – decide who wins repeat orders.

What does the co-firing policy require?

India’s co-firing framework has evolved since a 2017 advisory. The National Mission on Use of Biomass in Thermal Power Plants (SAMARTH) was set up in 2021, the policy was revised in October 2021 and modified in June 2023, and in November 2025 the Ministry of Power issued a comprehensive policy covering biomass pellets and torrefied charcoal made from municipal solid waste (MSW). The current requirement:

For NCR plants, at least half of the biomass is to be sourced from local paddy residue and stubble, which links the policy directly to reducing stubble burning.

How big is co-firing demand already?

As reported at an industry conference in September 2026, cumulative biomass pellet use by NCR thermal plants had reached 4.38 million tonnes by 15 June 2026, and 75 thermal power plants across India had used biomass pellets at least once. Power producers have also said that some plants missed targets in FY 2024-25 because of limited pellet availability and technical constraints, which signals continued demand for reliable, specification-grade supply.

What specifications do power plants expect?

The SAMARTH Mission’s recommended technical specifications for agro-residue based pellets are the reference most tenders build on:

Suppliers are also expected to declare the residues used and their approximate proportions with each dispatch. Individual buyers frequently add their own preferences – for example, a higher minimum GCV – so always read the specific tender.

How are co-firing pellets priced?

Because buyers pay for heat, pellet prices are commonly benchmarked per 1,000 kcal. In 2023 the Ministry of Power issued benchmark prices for non-torrefied pellets of ₹2.32 per 1,000 kcal for the NCR, ₹2.27 for the Northern region (excluding NCR) and ₹2.24 for the Western region, excluding GST and transport from the pellet plant. These benchmarks were set for defined periods, so check the current notification and each tender’s price and quantity adjustment clauses.

Example: at ₹2.27 per 1,000 kcal, a pellet tested at 3,400 kcal/kg works out to 3.4 × ₹2.27 ≈ ₹7.72 per kg, or about ₹7,700 per tonne before GST and freight. A pellet tested at 3,000 kcal/kg would earn roughly ₹6,800 per tonne. Calorific value has a direct effect on revenue.

How are consignments tested?

Expect sampling at the power plant on receipt, with moisture, GCV and fines measured against the contract. Deviations typically lead to price adjustments (for GCV) or quantity adjustments (for moisture and ash), and heavily non-conforming lots can be rejected. Good practice for suppliers:

• Test every dispatch lot at your plant before loading, using the same methods the buyer uses.
• Keep retained samples for each consignment.
• Cover trucks and avoid loading during rain to protect moisture levels.
• Screen fines immediately before loading, not only after pelletising.

Torrefied or non-torrefied pellets?

Torrefied pellets are thermally treated, giving higher calorific value, better grindability and lower moisture uptake. They command higher prices but need more complex, costlier plants. Most existing boilers co-fire non-torrefied pellets today, while newer plants may have more scope for torrefied fuel. For most first-time developers, a well-run non-torrefied plant tied to a clear buyer is the lower-risk entry point.

What about Rajasthan?

Rajasthan has a significant fleet of coal-based plants and large volumes of mustard, paddy, soybean and other residues. Media reports in December 2024 indicated that thermal plants in the state were not yet using biomass because of equipment constraints. With the nationwide 5% requirement now in force, developers in Rajasthan should watch state utility tenders closely and also consider buyers in neighbouring states and the NCR.

How KSR Green Bharat can help

Meeting co-firing specifications consistently comes down to feedstock selection, drying control, die selection and disciplined maintenance. KSR Green Bharat supports pellet projects across planning, installation coordination and ongoing operations. See our pellet plant setup guide and pellet quality troubleshooting guide, or talk to our team about your plant.

Frequently asked questions

What is the biomass co-firing mandate in India?

Under the Ministry of Power’s comprehensive co-firing policy notified in November 2025, coal-based thermal power plants must co-fire at least 5 percent biomass pellets or torrefied MSW charcoal by weight from FY 2025-26. Plants in the Delhi-NCR must use 5 percent biomass pellets plus an additional 2 percent of pellets or torrefied MSW charcoal, taking them to 7 percent.

What moisture content do power plants accept in biomass pellets?

The SAMARTH recommended specification limits moisture to not more than 14 percent by weight on an as-received basis. Individual tenders may set their own limits, so always read the buyer’s specification.

What calorific value should non-torrefied pellets have?

The SAMARTH specification gives a gross calorific value range of 2,800 to 4,000 kcal/kg for non-torrefied pellets, 3,000 to 4,500 for semi-torrefied and 3,400 to 5,000 for torrefied pellets. Many buyers prefer higher GCV and adjust price according to tested values.

How are biomass pellets priced for power plants?

The Ministry of Power issued benchmark prices for non-torrefied pellets in 2023: Rs 2.32 per 1,000 kcal for the NCR, Rs 2.27 for the Northern region excluding NCR and Rs 2.24 for the Western region, excluding GST and transport. Benchmarks carry validity periods, so check the latest notification and each tender’s terms.

Can wood be used to make pellets for co-firing?

Power plant specifications are written around agro-residue as the base material. Wood cut from trees is generally not accepted, and suppliers must declare the residues used and their proportions with each dispatch.

Sources

• SAMARTH – Recommended technical specifications for biomass pellets (PDF)
• Down To Earth – Co-firing policy for MSW charcoal and pellets
• Lok Sabha Unstarred Question 3038 (Dec 2023) – Benchmark prices (PDF)
• Power Line – Biomass quality and co-firing progress (Sept 2026)