India is at the forefront of renewable energy adoption, and biomass pellets are emerging as a sustainable fuel alternative to coal. With government initiatives, subsidies, and a rising demand for clean energy, starting a biomass pellet manufacturing business in India has become a lucrative opportunity. But how do you begin? Let’s break down the process step by step.
🌱 Why Biomass Pellets in India?
Biomass pellets are made from agricultural residues like paddy straw, rice husk, sugarcane bagasse, sawdust, and wheat straw. India produces millions of tonnes of agro waste every year, much of which is either burnt or left unused. Converting this waste into biomass pellets not only prevents pollution but also creates a profitable energy product.
👉 Growing demand from thermal power plants, industries, and exporters is driving this sector forward.
✅ Step-by-Step Guide to Starting a Biomass Pellet Manufacturing Business
1. Market Research & Feasibility Study
Before investing, study:
• Raw material availability in your region (paddy straw in Punjab, bagasse in Maharashtra, sawdust in Gujarat, etc.).
• Local demand from industries, boilers, and power plants.
• Government tenders such as NTPC’s biomass co-firing initiative.
• Competition and pricing trends in biomass fuel.
This step helps you identify the right scale and business model.
2. Business Registration & Licenses
Register your company as LLP, Pvt Ltd, or MSME. Obtain:
• Factory license
• Pollution control clearance
• GST registration
• BIS certification (if required for exports)
Many state governments offer subsidies and financial incentives for biomass projects under renewable energy schemes.
3. Land & Infrastructure
You will need at least 1-2 acres of land depending on plant capacity. The site should have:
• Easy access to raw materials
• Transport connectivity
• Power and water supply
• Storage area for raw materials and finished pellets
4. Machinery & Technology Selection
Key equipment includes:
• Hammer mill / Crusher – for grinding raw material
• Flash dryer – to reduce moisture
• Pellet mill machine – the heart of the process
• Cooling & screening system – to stabilize pellets
• Packing machines – for bagging pellets
Companies like Yulong-Gattuwala and other pellet machine suppliers in India provide complete biomass pellet plant solutions.
5. Manpower & Training
Hire skilled operators and provide training for machine handling, quality control, and safety standards. A medium-scale plant may require 20–30 workers.
6. Production Process
1. Collect & prepare raw material
2. Grind biomass into fine powder
3. Dry it to reduce moisture to 8–12%
4. Compress into pellets using a pellet mill
5. Cool, pack, and store for distribution
7. Sales & Distribution
You can sell biomass pellets to:
• Power plants for coal co-firing
• Industrial boilers in textile, paper, and chemical industries
• Export markets (Europe & Asia demand high volumes)
• Retail & small users for cooking and heating
Platforms like IndiaMART, TradeIndia, and direct government tenders are great for building customer networks.
💰 Investment & Profitability
• Small plant (500 kg–1 ton/hr): ₹25–40 lakhs
• Medium plant (2–5 ton/hr): ₹1–3 crore
• Large-scale (10+ ton/hr): ₹5 crore and above
With rising demand and government backing, payback is usually within 2–3 years.
🚀 Future of Biomass Pellet Business in India
• NTPC and other power plants are steadily increasing biomass pellet usage.
• The government targets 5–10% biomass co-firing in coal plants.
• Export opportunities are growing, especially in Europe and Japan.
Starting a biomass pellet manufacturing business in India is both profitable and sustainable. With proper planning, the right technology, and government support, entrepreneurs can turn agricultural waste into green gold.
If you’re looking to enter the renewable energy sector, this is the perfect time to invest in biomass pellet manufacturing.
👉 Yulong-Gattuwala truly transforms pollution into opportunity, making agriculture cleaner and more profitable.
📞 Interested in setting up a biomass pellet plant in India? Contact Gattuwala Energy for expert consultation, equipment, and government subsidy support.
