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Odisha is fast becoming a key destination for India’s renewable energy growth, especially in the biomass briquettes and pellets sector. Agricultural waste that was once burned or discarded is now turning into a high-demand fuel for industries and thermal power plants.
For entrepreneurs, this is not just an eco-friendly initiative—it is a profitable, policy-supported business opportunity, explained in detail in the Odisha Biomass Business eBook.
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India’s biomass demand is rising sharply. The country needs nearly 95,000 tons of biomass fuel per day, while actual production is only 8,000–10,000 tons per day. This huge demand–supply gap creates space for new entrepreneurs.
Adding to this, the Government of India has made biomass blending mandatory for coal-based thermal power plants:
5% biomass usage from 2024–25
7% biomass usage from 2025–26
With major thermal plants in Odisha such as Talcher and Jharsuguda, long-term demand is already secured.
The Odisha Biomass eBook explains how to tap into this guaranteed demand.
Biomass fuel is mainly produced in two forms:
Biomass Briquettes
Large compressed blocks used in industrial boilers and heating systems.
Biomass Pellets
Small cylindrical fuels preferred by thermal power plants due to uniform size and easy handling.
Non-Torrefied Pellets
Torrefied Pellets (higher calorific value)
Choosing the right product depends on market demand, subsidy eligibility, and plant capacity—all clearly explained in the Odisha Biomass eBook.
Odisha offers strong natural and policy advantages:
Abundant raw material: paddy straw, maize stalks, sugarcane bagasse, groundnut shells, forest biomass
Recognized as a Priority Sector
Strong state support under:
This combination ensures low raw material risk and high policy support, making Odisha ideal for biomass startups.
Non-Torrefied Pellets: ₹21 lakh per MTPH (Max ₹1.05 Cr)
Torrefied Pellets: ₹42 lakh per MTPH (Max ₹2.10 Cr)
100% tax-free profits for 5 years under Section 80JJA
Agri Infra Fund (AIF): 3% interest subsidy on loans up to ₹2 Cr for 7 years
25% capital subsidy on plant & machinery
75%–100% SGST reimbursement
Electricity duty & land conversion charge exemption
The Odisha Biomass eBook shows how to legally combine these benefits.
A 2 TPH biomass pellet plant requires an investment of around ₹2.80 Crore, including working capital.
Key financial highlights:
Net profit ratio: ~11.5% from Year 2
Payback period: ~3.5 years
Strong long-term demand due to mandatory biomass usage
While challenges like seasonal raw material supply exist, these risks can be managed through supplier tie-ups, aggregators, and quality machinery—strategies detailed in the eBook.
Odisha offers abundant raw material, thermal power plants, and strong government subsidies.
A biomass plant typically needs ₹2.5–₹3 crore, depending on capacity.
Yes. MNRE subsidy, tax benefits (80JJA), AIF interest subsidy, and Odisha state incentives are available.
Main buyers are thermal power plants and industrial boilers.
Yes. Biomass blending in coal plants is mandatory, ensuring long-term demand.
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