Govt. Sanctions Funds for Waste-To-Energy Scheme Worth Rs 478 Crores

“Approval is accorded for grant of Central Financial Assistance (CFA) of Rs 478 crore and a physical target of 257 MW for the remaining period of FY20 for the program, which includes a CFA of Rs 400 crore with a physical target of 200 MW for municipal solid waste (MSW)-based WTE plants,” the ministry believed

March 04, 2020. By News Bureau

The government has announced that it has given its permission for a funding of Rs 478 crore to the waste-to-energy (WTE) programme for the enduring period of financial year 2019-20 (FY20).

It has also permitted a physical target of 257 megawatt (MW) for the said period under the revised guidelines for WTE scheme released by the ministry of new and renewable energy recently.

“Approval is accorded for grant of Central Financial Assistance (CFA) of Rs 478 crore and a physical target of 257 MW for the remaining period of FY20 for the programme, which includes a CFA of Rs 400 crore with a physical target of 200 MW for municipal solid waste (MSW)-based WTE plants,” the ministry believed.

The CFA would be in the form of capital subsidy and grants-in-aid, it added.

The guidelines added that projects based on WTE conversion technologies such as biomethanation, combustion, gasification, pyrolysis or any new technology as permitted by MNRE would be qualified for CFA.

The scheme has been reviewed to comprise MSW-based projects in the programme guideline and added that the expenditure on this scheme would be met through the Budget provisions given under the bio-power head.

According to the ministry, the revision aims to promote setting up of projects for recovery of energy from MSW for feeding power into the grid and for meeting captive power, thermal, and vehicular fuel requirements.

For power based on MSW, Rs 5 crore per MW and a maximum CFA of Rs 50 crore per project has been approved. However, the plant should at least be of 5 MW installed capacity to receive the grant. For biogas, Rs 1 crore per 12,000 m3 biogas per day and a maximum CFA of Rs10 crore per project has been approved.

Under the revised guidelines, there will be no maximum limit on capacity of WTE projects. “Whereas, biogas plants based on agro-based industrial residues of up to 250 kilowatt capacity for power generation and up to 2,500 m3 capacity would not be eligible under the programme. Biomass Gasifier projects of any capacity shall be eligible for CFA under this Programme,” it added.

The document further that the revised guidelines would supersede the existing ones. Though, the proposals already received in the ministry before the date of notification of this guideline would be governed by the WTE scheme.

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