Investing in a biomass pellet plant is not only an eco-friendly decision but also a profitable business opportunity. With rising demand from power plants and industries, strong return on investment (ROI) and government subsidy support make pellet production attractive for entrepreneurs.
The total investment depends on plant capacity, raw material availability, and automation level.
• Biomass pellet machine
• Dryer, hammer mill, conveyor & cooler
• Electrical installation & civil work
• Raw material handling and storage
Small plants require lower capital, while industrial-scale pellet plants involve higher investment but deliver faster returns.
• Raw biomass material
• Electricity consumption
• Labor and maintenance
• Packaging and transportation
Using locally available agro waste significantly reduces production cost.
• Average biomass pellet demand is growing due to coal replacement policies
• Long-term supply contracts ensure stable income
• Power plants and industrial boilers offer consistent off-take
Typical ROI Period:
👉 18 to 30 months, depending on capacity, operating efficiency, and raw material cost.
Government Subsidy Support in India
The Government of India actively promotes biomass pellet production to reduce stubble burning and coal dependency.
Key Subsidy & Policy Benefits
1. MNRE Support
• Capital subsidy under renewable energy programs
• Support for biomass energy projects and equipment
2. Ministry of Power & NTPC Policies
• Mandatory biomass co-firing in thermal power plants
• Long-term pellet supply tenders from NTPC and state utilities
3. State Government Subsidies
• Capital subsidy for MSMEs
• Electricity duty exemption
• Land and stamp duty concessions
• Interest subsidy on term loans
Subsidies vary by state and project size.
Bank Loan & Financial Assistance
• Priority sector lending for renewable energy
• Term loans from nationalized and private banks
• Reduced interest rates under green energy schemes
How We Support You
We provide complete assistance for:
✔ DPR (Detailed Project Report) preparation
✔ Subsidy and incentive guidance
✔ Bank loan documentation support
✔ Pellet plant layout & capacity planning
With strong demand, assured buyers, and government support, biomass pellet plants offer attractive ROI and long-term sustainability. Proper planning, right machinery, and subsidy assistance can significantly improve profitability and reduce payback time.
Produce solid high-quality pellets with our pellet machines
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