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Promotion of Grid Interactive biomass power & Bagasse Cogeneration in Sugar mills

Continuation of Scheme during the 12th Plan Period

July 07, 2014. By Moulin

MNRE sanctions continuation of the Plan scheme viz. "Promotion of Grid Interactive Biomass Power and Bagasse Cogeneration in Sugar Mills" during the 12th Plan period at a total cost of Rs.310 crores .The Scheme would be applicable from the date of 1st April, 2014 and would continue upto the end of 12th Five-Year Plan i.e. 31 March 2017

The scheme provides for grant of Central Financial Assistance (CFA) for setting up biomass combustion based power projects and bagasse cogeneration projects in private/cooperative/public sector sugar mills. The Ministry of New and Renewable Energy will continue to provide financial support for R&D activities, organization of Seminars/Symposiums/Workshops/Training programmes, strengthening of technical institutions, testing facilities, engaging consultants, undertaking studies etc. on case to case basis.

Grid connected Biomass Power and Bagasse Cogeneration Projects with the following capacity/parameters will only be eligible under the scheme:

Biomass Power (combustion)		• Minimum 60 bar steam pressure • Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals or as per DPR, whichever is less. • For only new boilers and turbines (capacity limited to in accordance with the estimated potential in a state)
Bagasse Co-generation by Private/cooperative / Public Sector Sugar Mill		• Minimum 40 bar steam pressure • Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less.
Bagasse Cogeneration through BOOT/BOLT model by IPP's /State Govt. undertaking / State Govt. Joint Venture Company		• Minimum 60 bar steam pressure • Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less, during crushing season. • Minimum export of power - 5 MW.
Bagasse Cogeneration in existing cooperative sugar mill employing boiler modification		• Minimum 40 bar steam pressure. • PPA as per SERC. • Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less, during crushing season. • Minimum export of power - 3 MW.

The Central Financial Assistance for private sector projects viz IPP Grid interactive biomass combustion power projects and bagasse co-generation in private / Joint sector sugar mills, IPP based BOOT/BOLT model projects in cooperative / Public sector sugar mills will be released after successful commissioning, and commencement of commercial generation and testing of the project (Back ended Central Financial Assistance), except in the case of bagasse co-generation projects in cooperative/public sector sugar mills implemented by State Government undertaking / State Government Joint Venture Company/SPV Company (Urja Ankur Trust) through BOOT/BOLT model and cogeneration projects by cooperative / public sector sugar mill themselves, wherein 50% of eligible upfront Central Financial Assistance will be provided and the balance 50% will be released after successful commissioning and performance testing of the project.

Central Financial Assistance will be applicable for the projects started on 1st April, 2013 or later. For the projects started on or before 31st March, 2013, the old rate of CFA applicable during the 11th Five Year Plan and extended to 31st March, 2013 will be applicable.

For more information, please refer to the the attachment:

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Biomass