The state of Maharashtra in India has introduced a new policy that mandates the blending of 5-7% bamboo biomass or charcoal with coal in all public and private thermal power plants, starting from December 2025. This move aims to reduce emissions from coal-based power generation and create a new industrial market for bamboo growers. The policy, known as the Maharashtra Bamboo Industry Policy, 2025, has allocated INR 1,534 crore for the first five years and a total of INR 11,797 crore over 20 years to support the transition.
Bamboo, considered a highly renewable and sustainable resource, is expected to play a significant role in reducing the state’s carbon footprint. It absorbs large quantities of carbon dioxide, helps restore degraded soils, and requires fewer inputs than traditional energy crops. The state government believes that bamboo can be a low-emission substitute in industrial combustion, enabling co-firing without major infrastructure changes and reducing the carbon intensity of state utilities.
The policy is expected to create a significant impact on the state’s economy, with estimates suggesting the creation of around five lakh direct and indirect jobs across cultivation, processing, and manufacturing. The initiative is also expected to spur the development of bamboo-based industrial clusters, strengthen farmer producer organizations, and expand contract farming and MSME activity in biomass and biochar production.
Maharashtra hopes to position itself as a key player in the emerging bamboo-based carbon credit market, which the policy seeks to formalize. By replacing a portion of coal with bamboo biomass, the state aims to attract global green investment and reduce its dependence on fossil fuels. The move is also in line with India’s broader decarbonization commitments and Maharashtra’s climate goals.
The districts of Gadchiroli, Chandrapur, Satara, Kolhapur, and Nashik are expected to develop into major bamboo production hubs, with the state government providing support for plantation, harvesting, processing, pelletization, and charcoal production. Overall, the Maharashtra Bamboo Industry Policy, 2025, is a significant step towards reducing the state’s carbon footprint and promoting sustainable development, while also creating new economic opportunities for farmers, entrepreneurs, and industries involved in the bamboo value chain.