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62 10.1 BIOMASS RESOURCE POTENTIAL The current availability of biomass in India is estimated at about 120-150 million MT/annum covering agricultural and forestry residues corresponding to a potential of 16,000 MW. This apart, 5000 MW can be installed through bagasse cogeneration. Plantations on waste lands also provide significant opportunity - about 62,000 MW for grid-interactive power and another 15,000 MW for off-grid applications. 10.2 BIOMASS POWER/ COGENERATION PROGRAMME 10.2.1  Objectives The Biomass Power/Co-generation Programme is being implemented during the 10th Plan with the following objectives: i. To promote technologies of bagasse co-generation in sugar mills, biomass combustion and megawatt scale gasification for generation of power. ii. To support and thus enlarge activities through awareness creation, publicity measures, seminars/workshops/business meets etc. 10.2.2  The Programme includes the following Components: l Interest Subsidy for Bagasse/Biomass Co-generation projects, including IPP mode projects; l Interest Subsidy for Biomass Power Projects, including captive power projects; l Grants to MW-scale projects with 100% producer gas engines, and Advanced Biomass Gasification projects; and l Promotional Incentives for awareness creation, training and preparation of Detailed Project Reports. 10.2.3  Progress and New Initiatives During the year i.e. April to December 2005, capacity addition of 118 MW by biomass power/cogeneration projects in five States was achieved against a target of 160 MW. Another 50 MW of capacity addition is likely to be achieved by the end of the financial year. 10.3 BAGASSE COGENERATION PROGRAMME 10.3.1  Private Sector Sugar Mills During 2004, the steam parameters were upgraded to 87 ata 515o C which give almost 5% to 6% higher output in gross power generation than the 67 ata system. As of now there are 12 plants already in operation with 87 ata and 515o C steam  parameters  in  Uttar  Pradesh,  Karnataka,  Andhra  Pradesh  and  Tamil  Nadu  and  about  15  projects  are  under implementation.  Several  continuous  bagasse  feeding  system,  regenerative  feed  water  heating,  variable  frequency drives have led to improved the plant reliability and efficiency. 10.3.2  Cooperative Sector Sugar Mills A 20 MW cogeneration project with 67 ata and 490° C configuration in a cooperative sector sugar mill in Belgaum district has been successfully commissioned and two cogeneration projects of 9 MW and 16 MW capacities with a similar configuration in Sholapur  and Ahmednagar  are  in  advanced  stages  of  implementation  and  are  expected  to  go  on-stream  in  March  2006. Commissioner of Sugar, Maharashtra State has initiated development of cogeneration projects by BOOT developers on competitive bidding basis. 10 sugar mills have joined the process and the bidding is likely to be completed by March 2006. Eight cooperative sugar mills in Maharashtra have prepared Detailed Project Reports with a configuration  of 67 ata 485°C. During the year, the Ministry supported in-plant training programme on sugar mill cogeneration for cooperative sector sugar mills in Karnataka and Maharashtra. The Ministry has sponsored a quarterly newsletter “Cane Cogen India” on sugar mills cogeneration. The objective of the newsletter is to create awareness and disseminate information of the activities in bagasse cogeneration. 10.3.2.2  Unless co-operative sector mills, which constitute more than 55% of the sugar mills in the country, are able to develop bankable  cogeneration  projects,  the  potential  of  5,000  MW  might  not  be  achieved. As  on  date,  the  installed  capacity  for cogeneration power plants in co-operative sugar mills is hardly 50 MW from 8 sugar mills. A Committee is being constituted, comprising among others, representatives of Ministry of Consumer Affairs and NCDC to suggest innovative ways and means for accelerated growth of bagasse cogeneration, especially in the cooperative sector. The report of the committee is expected during 2006-07.