New Delhi – The Union Ministry of Power, Government of India, has released a comprehensive new policy mandating coal-based thermal power plants (TPPs) to co-fire torrefied charcoal derived from municipal solid waste (MSW) alongside traditional coal and biomass pellets. Released on November 7, 2025, the consolidated policy supersedes all earlier versions, creating a unified framework aimed at utilizing the country’s vast amounts of surplus agricultural residue and unmanaged urban waste.
The primary objective is to sustainably utilize India’s estimated 230 million tonnes of surplus agricultural residue and the 25% of the 150,000 tonnes of daily MSW that currently remains unmanaged. This move aims to reduce greenhouse gas emissions and support the government’s Swachh Bharat Mission (Clean India Mission).
Co-firing Mandates and NCR Focus
The new policy sets mandatory co-firing targets starting from the financial year 2025-26, with stricter norms for the pollution-sensitive Delhi-National Capital Region (NCR):
• Delhi-NCR TPPs: Must use a 5% blend (by weight) of biomass pellets plus an additional 2% blend of either biomass pellets or torrefied charcoal made from MSW, totaling a minimum of 7% non-coal fuel. Critically, TPPs in the NCR and adjoining areas must ensure a minimum of 50% of the raw material in their pellets is stubble, straw, or rice paddy crop residue sourced exclusively from that region.
• Other TPPs (Outside NCR): Must co-fire 5% (by weight) of either biomass pellets or torrefied MSW charcoal with coal.
The policy includes a provision for case-by-case exemptions, which will be examined by a high-level committee including the Central Electricity Authority (CEA) and the Commission for Air Quality Management (CAQM).
Operational Challenges vs. National Solutions
The integration of MSW-derived charcoal has sparked debate within the power sector regarding feasibility and environmental impact.
NTPC Ltd, a public sector leader, expressed confidence, citing its flagship plant at Ramna, Varanasi, which successfully converts 500-600 tonnes per day of MSW into high-quality torrefied charcoal. A senior official noted this charcoal is already being co-fired successfully at the Unchahar thermal power station, requiring no further modifications to the existing boiler operations already utilizing biomass pellets.
However, a senior official from a private TPP warned of significant operational and environmental hurdles:
“MSW charcoal typically contains high chlorine, alkali metals and heterogeneous components, which can cause increased slagging, fouling and accelerated corrosion of boiler pressure parts… Additionally, the fine and low-density ash associated with MSW fuels can overload the electrostatic precipitator, reduce particulate capture efficiency.”
Concerns were also raised that co-firing could raise emissions of new pollutants, such as dioxins, furans, and heavy metals, which are currently not actively monitored in most coal-based TPPs, potentially creating environmental compliance risks.
Lessons from Waste-to-Energy and Supply Chain
Experts from the Centre for Science and Environment (CSE) highlighted that the core problem lies in the poor quality of unsegregated feedstock.
Tribhuvan Bisht, Deputy Programme Manager at CSE, stated that torrefaction, while removing moisture, does not remove contaminants. Instead, it concentrates heavy metals and releases corrosive hydrogen chloride gas from plastic and food waste, potentially priming the biocoal with catalysts for dioxin formation during co-firing. Bisht warned: “The only real solution lies at the source with proper segregation.”
To ensure the success of the policy, Nivit Kumar Yadav, Programme Director for CSE’s industry unit, stressed the need for a “similar initiative and ecosystem” to the National Biomass Mission to scale up the production and supply of quality MSW charcoal, enabling TPPs to meet their mandatory targets.