United Nations has set Sustainable Development Goal 7 (SDG 7) to attain energy security and efficiency by increasing sustainable per capita energy consumption. It will also ensure in reduction in emissions and pollution as per global and national targets. Achievement of good quality fuel pellets for efficient handling and conversion of biomass into advance fuels remains a challenge to the biomass energy system. A framework for the production of pellet is followed for maintaining the quality of the fuel. An extensive literature was done on the factors affecting the pellet quality and the gasification technology for the biomass based pellets. For this project, sawdust and charcoal are used for pellet production. Waste rice water and engine oil sludge are used as binders in the production. These raw materials are used in different proportions. Thermo-Chemical properties of the biomass pellets are studied. In the study, it was found that moisture content and size of the materials play a vital role in quality of the pellets. For gasification of the pellets, it should be 6-8cm in length for efficient combustion.