Torrefied pellets have gained more commercial importance due to their excellent performance in combustion, co-firing and gasification. The present investigation provides a conceptual design for torrefied fuel pellets production via combined torrefaction and pelletization technologies with and without additives. The entire design contains torrefaction unit, grinding, preparation of pellet formulation, pelletizing, and finally cooling of pellets. Two scenarios, scenario 1 (pelletization of torrefied biomass with additives) and scenario 2 (pelletization of torrefied biomass without any external additives) were tested and compared. The economic analysis suggests that both scenarios are profitable. Both scenarios were simulated using Aspen plus™, and economic feasibility was estimated using a complete cash flow analysis for a base case plant with 40,080 tonne/y capacity. For both cases, a discounted cash flow is a useful tool for estimating the minimal selling price for torrefied pellets as well as the capital investment, production cost and operating costs. The cost of the reactor used for torrefaction was found to be the most important component of combined torrefaction and pelletization system. The lowest selling price of generated torrefied pellets was found to be $103.4 and $105.1 per tonne at the plant gate for scenarios 1 and 2, respectively. Sensitivity analysis shows that, among all variable costs, labor cost has the highest influence on both net present value (NPV) and minimum selling price (MSP) in making pellets for both the scenarios. Furthermore, the internal rate of return was found to be25% and 22% at 10% discounted cash flow rate for scenarios 1 and 2, respectively. The framework that was created was found to lessen over-dependence on wood or fossil fuels and facilitate the promotion of bioenergy in rural areas.