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Wastes generated from Urban and Industrial sector increase continuously with rising population, rapid urbanisation and industrialisation. Some recent estimates have indicated that about 40 million tonnes of solid waste and about 5000 million cubic metres of liquid waste is generated every year in the urban areas of the country. In addition to this, a large quantity of solid and liquid waste is also generated in the industrial sector. Most of the waste generated in the country finds its way into rivers, ponds, low lying land, etc., without any treatment, resulting in odour, pollution of water and air as well as emission of Green House Gases like methane, carbon dioxide, etc. This problem can be mitigated through adoption of environment friendly technologies for treatment and processing of waste before it is disposed of. These technologies not only lead to generation of a substantial quantity of decentralised energy but also reduce the quantity of waste besides improving the quality of waste to meet the pollution control standards. It is estimated that there is a potential of generating about 1500 MW of power from urban and municipal wastes and about 1000 MW from industrial wastes in the country, which is likely to increase further with economic development. 6.2 Ministry of Non-Conventional Energy Sources is promoting setting up of Waste-to-Energy projects through National Programme on Energy Recovery from Urban and Industrial Wastes and a UNDP/ GEF assisted project on Development of High Rate Bio-methanation Processes as a means of Reducing Green House Gases Emission. Energy Recovery Programme 6.3 The National Programme on Energy Recovery from Urban and Industrial Wastes was launched during the year 1995-96 with the following objectives (i) creation of conducive conditions with financial and fiscal regime to promote, develop and demonstrate the utilisation of wastes for recovery of energy; (ii) improvement in the waste management practices through adoption of renewable energy technologies for processing and treatment of wastes prior to disposal; and (iii) promotion of projects for recovery of energy from wastes from Urban and Industrial sectors. Financial Incentives 6.4 Financial Incentives being provided for eligible waste-to-energy projects under National Programme on Energy Recovery from Urban and Industrial Wastes are given below: Commercial Projects Interest subsidy is provided for reducing the rate of interest to 7.5% (4% in case of Municipal Solid Waste (MSW) based projects taken up by the Municipal Corporations / Urban Local Bodies). The amounts of interest subsidy capitalised with an annual discount rate of 12%, given to Financial Institutions (FIs) / Lead FI are as follows: (Rs. in crore/MW)
Demonstration Projects Assistance of up to 50% of capital cost of the project limited to Rs. 3.00 crore per MW for demonstration projects to generate power from Municipal Solid Wastes and a few selected Industrial Wastes. Power generation at Sewage Treatment Plants (STPs) Financial assistance of up to 50% of the incremental capital cost for generation of power from biogas. Urban Local Bodies Financial Incentive @ Rs. 15.00 lakh per MWe is payable to Municipal Corporations/Urban Local Bodies, for providing garbage free of cost at the project site and land on long term (30 years +) basis on nominal lease rent. However this incentive will be reduced to 50% in case of projects for generation of power from fuel or fuel from waste. State Nodal Agencies Financial incentives @ Rs. 5.00 lakh per MWe is payable to State Nodal Agencies for promotion, co-ordination and monitoring of projects. However, this incentive will be reduced to 50% in case of projects for generation of power from fuel or fuel from waste. Financial Institutions A service charge of 2% of the actual subsidy channelised through the FI to the promoter or other FIs, subject to a maximum of Rs. 2.00 lakh per project. Preparation of Detailed Project Report 50% of the cost of preparation of DPR or Techno-economic Feasibility Reports, subject to a maximum of Rs. 2.00 lakh per report to Urban Local Bodies only. |
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