The Ministry of New and Renewable Energy (MNRE) has been implementing a scheme for promotion of power generation from biomass including rice husk. A biomass power generation capacity of 620 MW has been achieved so far against a target of 500 Megawatt (MW) fixed for the 11th Five Year Plan period in the country. A total cumulative capacity of 1142 MW biomass power has been achieved upto 29.2.2012.
Various fiscal and financial incentives such as concessional customs duty on import of machinery and components, excise duty exemption, accelerated depreciation on major components, relief from taxes and capital subsidy for setting up of biomass power projects are being provided. Besides this, a preferential tariff is being provided for sale of power from biomass power plants.