Importance of Subsidy Viability Report in Biomass Business Projects

The biomass briquettes and pellets business is rapidly emerging as a profitable and sustainable green energy venture in India. It is a sector supported by both the Central and State Governments, offering tax exemptions, subsidies, and incentives for entrepreneurs and investors.

If you are looking to start or expand a biomass business, understanding the financial and policy landscape is crucial. That’s where the Subsidy Viability Report (SVR) comes in. Our eBook, “Subsidy Viability Report (SVR) in Biomass Business – Hindi Version”, is designed to guide you through the process of maximizing profits, minimizing costs, and taking full advantage of government incentives.

What is the Subsidy Viability Report (SVR)?

The SVR is a comprehensive guide that helps entrepreneurs and investors:

Identify eligible government subsidies and incentives
Understand tax benefits and exemptions
Plan financial and operational strategies for biomass projects
Increase the chances of bank financing and loan approval

Why Biomass Are a Smart Investment

Biomass briquettes and pellets are an excellent “waste-to-energy” solution, converting agricultural residues and biodegradable waste into clean fuel. They are increasingly being used as a coal alternative in industries and power plants due to their environmental and economic advantages.

Benefits of Biomass Fuel Compared to Coal

Factor	Coal	Biomass Briquettes/Pellets
Calorific Value	5000–6000 KCAL/kg	3400–4000 KCAL/kg
Ash Content	15%–30%	6%–10%
Cost	High	Lower
Pollution	High	Low
Wastage	15%–20%	8%–10%
Handling	Difficult	Easy

Market Opportunity in India

The demand for biomass briquettes and pellets is growing rapidly:

Daily demand: ~95,000 tons (Approx)
Current production: 8,000–10,000 tons (Approx)

Government policies also support the use of biomass: all coal-based thermal power plants must use at least 5% biomass pellets or briquettes. With 208+ thermal plants in India, the market opportunity is massive.

Key industrial consumers include:

Thermal power plants
Textile mills and dyeing houses
Brick kilns
Paper and pulp mills
Food processing units
Chemical and pharmaceutical industries

Govt Subsidies and Incentives Covered in the SVR

Central Government Support

Income Tax Exemption – Section 80JJA
- 100% tax deduction for the first five years of operation
- Available for profits from producing biomass briquettes or pellets
MNRE Central Financial Assistance (CFA)
- Biomass Briquettes: ₹9 lakh per MTPH (max ₹45 lakh)
- Non-Torrefied Pellets: ₹21 lakh per MTPH (max ₹1.05 crore)
- Torrefied Pellets: ₹42 lakh per MTPH (max ₹2.10 crore)
Agri Infrastructure Fund (AIF)
- 3% interest subsidy on loans up to ₹2 crore (up to 7 years)
- Credit guarantee coverage under CGTMSE
PMEGP Scheme for Small Projects
- Capital subsidy up to 35% (max ₹17.5 lakh) for units up to 2 TPH

State-Level Incentives

Capital subsidies: 15%–40%
Stamp duty and GST refunds: 50%–100%
Electric duty exemption: 100%
Employment generation subsidies

Why You Need This eBook

Our Hindi eBook on SVR in Biomass Business is specifically created for entrepreneurs, investors, and small businesses to:

Understand government subsidies in detail
Identify the best funding and tax options
Plan the most profitable business strategy
Avoid common mistakes and compliance issues

How KIP Can Help You

KIP helps you maximize profits and subsidies in the biomass business.

SVR Preparation – identify the best subsidies and tax benefits
Investment planning & DPR – ensure cost-effective, bank-ready projects
Subsidy filing & compliance – smooth approvals and legal compliance
Bank financing support – secure loans with interest subsidies
Business consultation – from raw materials to production scaling

Frequently Asked Questions (FAQs)

Q1: What is Subsidy Viability Report (SVR) ?

A guide to government subsidies, tax benefits, and funding for biomass projects.

Q2: Why is SVR important?

It helps maximize profits, reduce costs, and plan your project.

Q3: Which projects qualify?

Biomass briquettes, pellets, and renewable fuel units using agricultural or forest residues.

Q4: How does SVR help with financing?

Prepares bank-ready reports and identifies eligible subsidies for loans.

Q5: How KIP Can Help You?

Yes – SVR, DPR, subsidy filing, compliance, and investment planning.

Importance of Subsidy Viability Report in Biomass Business Projects

What is the Subsidy Viability Report (SVR)?

Why Biomass Are a Smart Investment

Benefits of Biomass Fuel Compared to Coal

Market Opportunity in India