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Scheme to Support Promotion of Biomass based Co-generation in Sugar Mills and other Industries in the Country (up to March 2020)

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HIGHLIGHTS

 

Nodal Agency

:

Ministry of New and Renewable Energy (MNRE)

 

Applicable Technologies

:

  • Biomass based co-generation technologies using:
    • Bagasse
    • Agro based industrial residue
    • Crop residues
    • Wood produced through energy plantations
    • Weeds
    • Wood waste produced in industrial operations
  • Municipal solid waste is not covered under the program

 

Eligibility Conditions

:

For availing term loans from financial institutions, the developer should be one of the following:

  • Registered company
  • Partnership firm
  • Proprietorship firm
  • Cooperative
  • Public sector company
  • Government owned firm

 

Scheme Period

:

May 2018 to March 2020

 

Incentives

:

  • Rs.25 lakh/MW for bagasse based projects.
  • Rs.50 lakh/MW for non-bagasse based projects.
  • Back-ended CFA to be released after successful commissioning and commencement of commercial generation and performance testing.
  • CFA only for projects installing new boiler and turbines.
  • CFA for existing plants with expansionary plans – only for the enhanced capacity.

 

 

OTHER PROVISIONS

 

Timeline for completion of projects

:

24 months from the date of sanction of assistance, with an additional six months grace period if the developer faces delays beyond his control.

 

Incentives to State Nodal Agencies

:

Rs.1 lakh/MW or Rs10 lakh/project whichever is less – incentives for post installation monitoring of projects and sending periodic reports to MNRE.

 

Performance Inspection

:

  • Operation of the project for three months after the date of commissioning.
  • At least 72 hours continuous operation at minimum 80% of rated capacity.
  • To be carried out by the utility in whose area the project is located.
  • Charges to be borne by the developer.

 

Monitoring of Projects

:

By a team comprising representatives of utilities, SNAs, experts appointed by MNRE and ministry officials.

 

Standards

:

Various national and international standards for equipment utilized.

 

Links

:

https://mnre.gov.in/node?page=9

 

References

:

https://mnre.gov.in/sites/default/files/schemes/scheme-Biomass-11052018.pdf

 

 

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