- July 19, 2025
India’s energy landscape is undergoing a transformative shift. One of the most exciting developments in recent years has been NTPC’s biomass co-firing initiative, aimed at reducing coal dependency and promoting biomass pellets as a sustainable energy source. This pioneering step not only marks a win for India’s climate goals but is also a game-changer for pellet machine manufacturers and suppliers across the country.
🌾 What Is Biomass Co-firing?
Biomass co-firing is the process of mixing biomass-based fuels, such as agricultural waste pellets, with coal in thermal power plants. This blend is used to generate electricity with lower carbon emissions. Biomass pellets, typically made from rice husk, mustard straw, cotton stalks, and other agro-residues, offer a clean-burning alternative that fits into existing infrastructure with minimal modifications.
🏭 NTPC Leads the Way
As India’s largest power generation company, NTPC (National Thermal Power Corporation) took a bold step in 2017 by launching its biomass co-firing policy. The goal? To co-fire biomass pellets up to 10% in its coal-fired thermal plants. By doing this, NTPC aimed to:
• Reduce stubble burning in Northern India (especially Punjab, Haryana, and Uttar Pradesh)
• Lower greenhouse gas emissions
• Create a market for biomass pellet machines and local suppliers
• Help meet India’s Paris Agreement climate commitments
As of 2025, NTPC has already invited tenders for lakhs of tonnes of biomass pellets annually, giving a major push to the renewable energy industry and opening up business for pellet machine suppliers in India.
💼 Opportunities for Pellet Manufacturers
NTPC’s large-scale demand has generated huge momentum for pellet production in India. From small-scale entrepreneurs to large manufacturers, the biomass sector is booming with:
• Government tenders for biomass pellet supply
• Financial support and subsidies for setting up pellet plants
• Increased awareness and training programs by government bodies like MNRE and CPCB
• Local farmers getting incentivized for collecting and selling agri-waste
Manufacturers of biomass pellet machines have seen a significant uptick in orders. Suppliers who can deliver high-output, reliable equipment are being favored for bulk contracts, especially in Northern India.
✅ Government Support & Tenders
The Indian government has backed NTPC’s initiative with strong policy and financial support:
• Subsidies of up to 35% for setting up biomass pellet plants under MNRE schemes
• Custom duty exemptions for importing pellet machinery
• Dedicated online portals like www.recpellets.in to streamline pellet procurement and supplier registrations
• Long-term Power Purchase Agreements (PPAs) to ensure demand sustainability
This is a clear signal for pellet equipment manufacturers in India to scale up their production and meet the growing demand.
🌱 Environmental Impact
Biomass co-firing isn’t just about fuel replacement—it’s about transforming India’s energy and environmental future. Here are the benefits:
• Drastic reduction in stubble burning, which causes smog and respiratory issues in cities like Delhi
• Lower carbon emissions from coal plants
• Encouragement for circular economy models, where agricultural waste becomes energy
• Empowerment of rural communities through decentralized biomass collection and processing
🔍 Challenges and Solutions
While the initiative is a big leap forward, challenges remain:
• Logistics of transporting pellets to NTPC plants
• Quality consistency in biomass pellet supply
• Farmer engagement and timely collection of agri-residue
To address these, NTPC is working with stakeholders to develop:
• Biomass pellet hubs near thermal power plants
• Training programs for pellet machine operators
• Real-time quality monitoring systems
Future Outlook: A Billion-Dollar Industry?
According to estimates, India’s biomass pellet market could surpass ₹5,000 crore by 2030. NTPC’s sustained commitment and the government’s aggressive renewable targets ensure that this growth will continue. It’s also encouraging foreign pellet machine brands like Yulong to collaborate with Indian suppliers (Gattuwala Energy Solutions), fostering technology transfer and innovation.
NTPC’s biomass co-firing initiative is more than a renewable energy strategy—it’s a catalyst for industrial innovation, rural development, and environmental preservation. For biomass pellet machine suppliers, agro-waste processors, and clean energy investors, this is the perfect time to act.
Whether you’re a manufacturer, farmer, or entrepreneur, NTPC’s biomass push represents a once-in-a-generation opportunity to be part of India’s green energy revolution.
Rank well, invest smartly, and lead the biofuel revolution—one pellet at a time.
📞 Interested in setting up a biomass pellet plant in India? Contact Gattuwala Energy for expert consultation, equipment, and government subsidy support.

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