State nod to 8 bio-mass power projects with 90 Mw capacity

To promote power generation from wastes like rice husk, groundnut and coconut cover and other agricultural waste, the Orissa government has approved the setting up of 8 bio-mass based power projects with a combined generation capacity of 90 Mw by private developers.

These projects will come up in Raygada, Nawarangpur, Ganjam, Nayagarh, Khurda, Puri, Dhenkanal and Puri districts. The state level technical committee (STC) headed by secretary, science and technology (S&T) department of Orissa government, had earlier given its nod to the projects. Depending on the location and evacuation facilities the cost per Mw of power is estimated to be between Rs 4.5 crore to 5 crore. Sources said, the Sali Vahana Green Energy will set up a 20 Mw bio-mass based power plant in Dhenkanal and Satya Bio-Power Industry Ltd plans to set up a 10 Mw plant in Ganjam. AVN Power Projects proposes to set up 10 Mw power plant in Kalahandi and Prasad Bio-Energy will set up a 10 Mw unit in Raygada.

While Jaylaxmi Bio-Energy Ltd plans to set up a 10 Mw unit in Nayagarh another plant of similar capacity by Andhavarapu Bio-Energy Ltd will come up in Nawarangpur. Sampath Power Projects Ltd and Falcon Green Energy Ltd propose units of 10 Mw capacity each in Khurda and Puri respectively.

However, to ensure the viability of the projects, the government has asked these companies to sign agreements with the rice millers for supply of rice husk and attain financial closure within 3 months. Besides, the government will ensure that these units don’t sell their license to other companies, sources added.

Though the potential of power generation using wastes in the state is estimated at about 350 Mw, this potential has mostly remained unharnessed. However, following the announcement of the policy guidelines for setting up of bio-mass based power plants in December 2005, a number of private developers have applied to the state government for setting up of bio-mass based power plants. While 70 applications were received by the state government, 8 projects have been approved. The remaining proposals are being scrutinised. It may be noted, the state level technical committee (STC) has approved generation of 150 Mw power using bio-mass in 15 districts of the state.