Rs 56.20 Crore released for grid connected biomass power/ bagasse cogeneration projects

Ministry of New and Renewable Energy is promoting setting up of biomass power projects under its scheme on Grid connected Biomass Power/ Bagasse Cogeneration in sugar mills. Various fiscal and financial incentives such as central financial assistance (CFA) which depends on the capacity of Power Plant and its location and fiscal incentives including concessional customs duty on import of machinery and components, excise duty exemption, accelerated depreciation on major components and relief from taxes are being provided for setting up of biomass based power projects. Besides, preferential tariff is provided for sale of power from biomass power projects. 

A total amount of about Rs 56.20 Crore was released to various states for grid connected biomass power/ bagasse cogeneration projects during 2012-13. Biomass availability for sustained operation of Biomass Power Plant is ascertained at the time of sanction of the project.