Maharashtra has issued a directive requiring all public and private thermal power plants in the state to blend 5–7 per cent bamboo-based biomass or charcoal with coal starting December 2, 2025, reports Energetica India.
The mandate, announced under the Maharashtra Bamboo Industry Policy, 2025, marks the first formal inclusion of bamboo in the state’s energy system. Officials noted that the state has strong potential for bamboo cultivation, even though production has declined in recent years.
The blending rule is one of the most important measures in the new policy, designed to cut emissions from coal-fired power plants while opening a new industrial market for bamboo farmers. The government has set aside ₹1,534 crore for the first five years of the policy (2025–2030) and approved a total incentive package of ₹11,797 crore for its 20-year duration.
Bamboo — often described as “green gold” — is one of the fastest-growing renewable biomaterials in the world. It absorbs large amounts of carbon dioxide, improves degraded soils and requires fewer inputs than timber or other energy crops. Maharashtra aims to use these advantages to make bamboo a cleaner alternative fuel in industrial energy use.
Officials said the shift to bamboo biomass is expected to lower lifecycle emissions from power plants, reduce dependence on coal, allow co-firing without major equipment changes and help meet the state’s climate targets in line with India’s national decarbonisation goals.
Although India has been promoting biomass co-firing in coal plants, Maharashtra is among the first states to specify a bamboo-only share, pointing to its rapid growth and wide availability. The government expects the new rule to build a full-scale value chain — from plantation and harvesting to processing, pellet production and charcoal manufacturing. Districts such as Gadchiroli, Chandrapur, Satara, Kolhapur and Nashik are likely to emerge as major bamboo production centres.
Policy estimates suggest the initiative could create around five lakh direct and indirect jobs across farming, processing and manufacturing. It is also expected to encourage new bamboo-based industrial clusters, strengthen farmer producer organisations, expand contract farming and boost MSMEs engaged in biomass and biochar production.
By replacing part of its coal use with bamboo biomass, Maharashtra hopes to attract global green investment and strengthen its role in the emerging bamboo-based carbon credit market, which the new policy aims to establish.
