Biomass Power Producers of India have formed a association to bring knowledge and development and better utilization of crop residues for sustained biomass power generation. It also lobbies for coherent policies from state governments and government of India on excise duty on bio-fuels, incentives for new projects etc., It will also coordinate with transmission/distribution lines and transformers required for transmitting power from biomass power plant to the nearest grid substation.
Currently, in India there are ample opportunities as there is increasing awareness in disposing agri waste and the potential revenue in such waste. According to estimates around 280 litres of ethanol can be produced from 1.0 tonne of paddy straw. With price of 1 litre of ethanol standing at Rs.41/- (approx.) and straw at Rs.8 per kg, there is a small profit in conversion of ethanol besides state promotion incentives.