Power ministry to benchmark biomass pellet prices

The power ministry will benchmark the prices of biomass pellets used for co-firing in thermal power plants to establish a sustainable supply chain in the sector.

The move comes in view of evolving market conditions for biomass pellets and requests received from stakeholders including thermal power plants, pellet manufacturers, farmers, bankers, the ministry said in a statement.

The benchmarked price will consider business viability, impact on electricity tariff and efficient and faster pellet procurement by power utilities.