New Incentives Package To Boost Power Generation From Wastes

The ministry of non-conventional energy sources has drawn up a new incentives package to boost the generation of electricity from wastes.

The key elements of package are that the state government should provide land on a long-term lease basis to promoters to help set up the required facilities, and that the wastes should be made available free of cost.

The ministry has already framed guidelines in this regard and has sent them to the various state governments for implementation. The Central Pollution Control Board (CPCB) has also framed technical guidelines, specifying the parameters in respect of urban waste disposal.

Sources said that the new package is being offered to augment existing incentives in a bid to promote the exploitation of renewable sources of energy. These include:

l Accelerated 100 per cent depreciation, concessional custom duty on project import, wheeling, banking and third-party sale stipulations, and no excise duty on bio-gas generation from effluent treatment systems.

l Interest subsidy up to 4.5 per cent of the interest rate for the entire loan repayment period, payable on a capitalised basis and subject to a maximum of Rs 50 lakh per mw equivalent.

l Site clearance/ facilitation incentive, detailed project report preparation incentive (at the rate of 50 per cent of the cost, subject to a maximum of Rs 2 lakh on a one-time basis), investment subsidy (20 per cent of direct equity contribution), for technological upgradation up to a maximum of Rs 70 lakh and 20 per cent incentive toward meeting the technology fee, subject to a maximum of Rs 5 lakh.

l Other fiscal and financial benefits available from the state-owned Indian Renewable energy Development Agency (IREDA).

The CPCB has also asked the state governments to direct the civic authorities to prepare time-bound action plans for scientific collection and disposal of the solid wastes. This would facilitate availability of the input for energy generation by interested entrepreneurs.

Under the parameters prescribed in this regard by the CPCB, cities and towns that generate more than 500 tonnes of wastes a day have been advised to use the material either for composting or for energy recovery.

The cities and towns generating less waste could opt for composting, says the CPCB. Only inert wastes are to be used for land-filling purposes.

With environment awareness growing in the country, the focus is increasingly shifting to harnessing all kinds of the non-conventional sources of energy. In this respect, urban wastes is a priority area as this would serve a twin purpose reduction in green house gas emissions emanating from thermal power plants and mitigation of health hazards for the populace.