Abstract India depends mainly on indigenous coal for its power generation and imported oil for its transportation needs. Most of the energy needs of rural poor are met by burning wood and other biomass in the least efficient manner adding to the GHG emissions. A comprehensive system of utilizing biomass energy to replace or supplement coal usage in power generation and industrial heating systems is a pressing need. Converting rural population to better fuels or efficient biomass burners will also help in reducing the growth of GHG emissions. An efficient network of Biomass Briquette Manufacturing system could help addressing most of these issues in a sustainable manner. The briquettes made from biomass can be mixed with coal for co-firing, used in gasifiers to produce syngas used for small scale power plants established in remote regions. This paper discusses the elements and needs of briquetting system and proposes ways to improve the productivity of the biomass briquetting system by eliminating bottlenecks and improving processes.