In India’s green transition, biomass pellet and biofuel manufacturing sectors are gaining momentum. Yet, many entrepreneurs overlook a critical aspect: proper NIC classification. Accurate NIC coding doesn’t just ensure compliance—it also governs your access to critical incentives and policy benefits.
What Are NIC Codes?
The National Industrial Classification (NIC) is India’s standard system for categorizing all economic activities—manufacturing, services, agriculture, you name it. Whether you’re a policymaker, banker, or business operator, you’re expected to identify your project under the correct NIC code for reporting, licensing, or applying for schemes.
Key NIC Codes for Biomass & Bioenergy
| NIC Code | Activity Description |
| 35105 | Manufacture of biofuels (solid/liquid) including blending |
| 35106 | Electricity generation using biomass |
| 38300 | Biomass pellet manufacturing (NIC-2008 update) |
Why Precise NIC Classification is Essential
Legal & Fiscal Compliance
The correct NIC code ensures smooth processing of registrations (Udyam, MSME), and avoids penalties or misfiling.
Scheme & Incentive Eligibility
Central/state subsidies often hinge on precise industrial classification. Using the right NIC code can be the difference between qualification and rejection.
Policy Planning & Statistical Integrity
Accurate industrial data underpins smart policymaking and helps factories benchmark their output versus industry standards.
How to Choose the Right NIC Code for Your Business
– Pellet Manufacturing:
Primarily producing wood or biomass pellets → 38300
– Biofuel Production or Blending:
Involves processing biomass into liquid or solid biofuels → 35105
– Biomass-based Power Generation:
Generating electricity using biomass → 35106
If your operations cut across multiple categories (e.g. pellet production plus power generation), you may need to register multiple NIC codes to ensure full compliance.
Conclusion
NIC codes may seem like bureaucratic jargon, but they are crucial for biomass pellet businesses to ensure valid registration, access subsidies, and maintain accurate industrial classification. As India advances in renewable energy, proper coding is more important than ever.
Disclaimer: The information provided in this content is for general informational purposes only. We (Satyajit Renewable Engineering Pvt. Ltd.) do not intend to promote, endorse, or encourage any specific action based on this information. Readers are strongly advised to conduct their own independent research and consult with relevant experts before making any decisions.