Subclonal variations play an important role in sugarcane varietal improvement. It is proven that some tissue culture variants are superior than the donor clones in terms of higher biomass, sugar yield and disease resistance. Only limited studies are reported on the tissue culture variants derived from intergeneric hybrid donors and its usefulness for crop improvement. The subclonal populations were derived from intergeneric hybrids (S. officinarum x Erianthus procerus) of sugarcane using 2,4 -D and caffeine for callus induction and kinetin and caffeine for differentiation. A total of 580 subclones were developed from 30 donor clones which were planted in a replicated trial along with donor clones. The biometric characters viz., stalk length, stalk thickness, internode length and single clump weight were recorded. The biochemical parameters were also studied including fiber per cent cane and POCS per cent. The results revealed that the subclonal populations showed wider variations for all the characters studied. Out of 580 subclones studied, 82 variants were selected for parental line and energy cane which had more than 16 per cent of fiber and 7.5 per cent of POCS. 38 subclones were selected for commercial lines with 13 per cent of fiber and POCS of 10 and above. Selection procedures adopted have shown that substantial gains could be made in one 'tissue culture generation' over the donor clones. Thus, this system helps to spread the variations and select individuals with specific characters for breeding and commercialization.