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Starting a biomass pellet or briquette manufacturing business is a powerful opportunity today—thanks to rising fuel demand, government policies, and the massive push for biomass co-firing in thermal power plants.
But many first-time entrepreneurs lose money because they enter the business without proper planning.
This guide explains the most common mistakes new biomass manufacturers make and how you can avoid them, ensuring a smooth, profitable, and compliant business setup.
Many startups begin without knowing:
Who will buy their pellets/briquettes
What quality they require
How much volume they expect
Tender eligibility rules
Study demand from Thermal Power Plants, industries, and local markets.
Track tender releases on GeM, CPPP, NTPC, DVC, HPGCL portals.
Understand regional demand (TPPs require 1.56 lakh tons/day nationwide).
A common and costly mistake is selecting land far away from:
Power plants
Industries
Raw material sources
Transport connectivity
This increases transportation cost and reduces eligibility for tenders (many require plants within 100–300 km radius).
Choose land close to raw material clusters (rice belt, sugarcane belt, husk-producing regions).
Check if land falls within the required radius of target power plants.
Without proper registrations, startups cannot apply for tenders or claim subsidies.
Complete:
MSME/Udyam Registration
GST Registration
Factory License
Pollution NOC
GeM Registration + Product Listing
DSC (Digital Signature Certificate)
New entrepreneurs often underestimate:
Working capital needs
Machinery cost
Storage cost
Transportation cost
Tender performance security requirements
Prepare a Detailed Project Report (DPR).
Estimate CAPEX + OPEX + working capital.
Explore subsidy schemes like Agriculture Infrastructure Fund (AIF).
Project Pre-Planning: Guidance on capacity, land, machinery, and investment planning.
Tender Participation Support: Complete assistance for NTPC and state-level biomass tenders.
Detailed Feasibility Analysis: Accurate cost, profit, and breakeven calculations for your biomass unit.
Policy & Compliance Guidance: State-wise rules, environmental norms, and documentation support.
Subsidy Assistance: Help in identifying and availing eligible government incentives.
End-to-End Handholding: From idea to execution—ensuring your project is fully ready and mistake-free.
Most units require ₹35–80 lakh depending on capacity and setup.
Yes, you need pollution clearance, basic registrations, and factory-related approvals.
Choose based on your plant capacity, logistics cost, quality ability, and raw material availability.
Use consistent raw material, control moisture, and follow proper production parameters.
Yes, KIP provides complete support from planning to tender submission.
KIP, established in 2008, is a registered company dedicated to delivering high-quality consultation and advisory services across a range of business needs. With expertise in Accounting, Auditing and Assurance, Taxation and Regulatory Compliance, Company Registration, LLP Formation, Project Reports, and Business Registrations, KIP has become a trusted partner for its clients.
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