Vishleshan for Regulatory Exams, 27th August 2025: SAMARTH Mission on Agri Residue Use

All those candidates who are eyeing exams like RBI, SEBI, or NABARD exams will have to stay updated with all the important economic and regulatory updates. In today’s edition of Vishleshan, we’ll discuss clean energy from crop waste in India. These issues are highly relevant for all the upcoming competitive exams mentioned above. Keep reading to stay ahead with a clear understanding of today’s topic.

From Stubble to Spark: India’s Rural Energy Revolution

Context: India’s crop residue, often burned, is now powering thermal plants under the SAMARTH mission. This policy shift tackles air pollution and creates immense economic value, turning a national problem into a powerful solution for rural communities and the energy sector.

Link to the Article: Business Standard

India’s Sustainable Agrarian Mission on Use of Agri-Residue in Thermal Power Plants (SAMARTH) is a landmark initiative designed to address the interconnected challenges of rural distress, air pollution, and the need for cleaner energy. The mission mandates a gradual increase in the co-firing of biomass pellets with coal in thermal power plants (TPPs), starting with a target of 5% to 7%. This policy not only aims to significantly reduce carbon emissions and dependency on coal but also provides a revolutionary framework for rural economic empowerment by creating a sustainable market for agricultural waste.

Background of Biomass Co-firing and SAMARTH Mission

• Crop Residue, Stubble Burning, and Pollution: India generates over 500 million tonnes of agricultural residues annually. While some of this is used productively, approximately 140 million tonnes remain surplus. Much of this surplus is either burned in the fields or discarded, with stubble burning in states like Punjab and Haryana accounting for up to 40% of winter air pollution episodes in the Indo-Gangetic Plain.
• Government’s Earlier Efforts: Previous government efforts to curb stubble burning, often through fines and bans, have had limited success due to a lack of viable and financially attractive alternatives for farmers.
• Biomass and Bio-pellets:
  • Biomass: Refers to organic materials, such as agricultural residues, which can be used as a renewable and sustainable source of energy.
  • Bio-pellets: Small, compressed organic materials made from various sources of biomass. These are an efficient and cost-effective green fuel source with a high calorific value.
• Relevance to Net-Zero Goal: Converting this biomass into pellets for co-firing provides a viable alternative that addresses the stubble burning problem. It is a “bridge solution” that can reduce emissions without requiring the immediate decommissioning of coal assets, aligning with India’s net-zero target by 2070. The process is considered carbon neutral, as the next crop absorbs as much CO₂ as is emitted during the pellet combustion.

Sustainable Agrarian Mission on Use of Agri-Residue in Thermal Power Plants (SAMARTH)

The Sustainable Agrarian Mission on Use of Agri-Residue in Thermal Power Plants (SAMARTH) is a landmark initiative launched by the Ministry of Power, Government of India, in July 2021.

• Mandate and Objectives: SAMARTH mandates the blending of 5-7% biomass pellets with coal in thermal power plants (TPPs). This is done to address air pollution from stubble burning, reduce carbon footprints, and empower farmers. The power generated from co-firing is considered renewable energy and is eligible for meeting non-solar Renewable Purchase Obligation (RPO).
• Progress: Since its inception, SAMARTH has scaled up biomass co-firing from 0.39 lakh metric tonnes (LMT) in 2019-20 to 11.16 LMT by September 2024. This has resulted in a reduction of 13.40 LMT of CO₂ emissions and generated 1,300 million units of electricity.
• Surplus Biomass: The total biomass generated annually is around 754.24 million MT, with a surplus of 228.40 million MT after conventional uses. The demand for agro-residue for a 7% co-firing mandate will be around 70 million MT annually, which is well within the available surplus.
• Financial Incentives for Farmers: Farmers can earn an additional ₹15,000-₹20,000 crore annually by selling agri-residue for pellet production. They also get cost savings by having their fields cleared at no cost. The government provides Central Financial Assistance (CFA) for pellet manufacturing units and Priority Sector Lending (PSL) for biomass projects through nine national banks.

Analysis of the Article: Decoding the SAMARTH Mission’s Potential and Challenges

The article positions the SAMARTH Mission as a pragmatic and inclusive solution that links rural development with India’s clean energy transition, while also identifying the key challenges that need to be addressed for its successful implementation.

1. A Bridge Solution for Energy and Environment:

• Synergy of Sustainability and Empowerment: The mission exemplifies the “convergence of sustainable energy solutions with rural economic empowerment”. It creates a win-win situation by providing farmers with a new revenue stream and a no-cost method to clear their fields, while simultaneously reducing stubble burning and carbon emissions.
• Measurable Benefits: The use of biomass pellets in TPPs can reduce CO₂ emissions by 15-20% for every unit of electricity generated.
• International Precedents: Countries like the UK, Sweden, Japan, South Korea, and Indonesia have successfully integrated biomass co-firing as a transitional strategy, which reinforces the value of this approach and aligns it with India’s energy realities.

2. Rural Economic and Social Impact:

• Income and Livelihoods: Farmers can earn an additional ₹3,000-₹6,000 per acre, potentially generating ₹6,000-₹24,000 crore in new rural revenues annually if a third of India’s surplus residue is monetized.
• Employment and Entrepreneurship: Full-scale deployment could create over 50,000 direct jobs, primarily in rural and semi-rural areas, across the biomass supply chain. This also encourages small entrepreneurs to set up pellet manufacturing units.

3. Challenges and Policy Interventions:

• Uneven Uptake: Uptake has been uneven due to concerns about cost, technical compatibility, and fuel supply chains.
• Policy Interventions Needed:
  • Clarity and Consistency in Procurement: Power plants need greater clarity in biomass procurement norms, including standardized pellet specifications, transparent price benchmarks, and reliable sourcing contracts.
  • Capacity-Building Support: Small pellet manufacturers need easier access to credit, technical assistance, and logistics support to accelerate supply growth.
  • Monitoring and Financial Incentives: Better monitoring and reporting mechanisms are essential. India could also align co-firing credits with carbon markets or renewable energy certificates to offer additional financial incentives for compliance and performance.

In conclusion, the SAMARTH Mission is a well-conceived initiative that offers a powerful, inclusive, and pragmatic pathway to achieving India’s clean energy goals. By transforming agricultural waste into a valuable resource, it creates a dynamic ecosystem that benefits farmers, strengthens rural livelihoods, and significantly reduces carbon emissions. While challenges in implementation persist, thoughtful policy interventions and continued momentum could transform this mission into a cornerstone of India’s vision for a greener and more prosperous future.