Wind Power Project  |  Biomass Power Project | Urban Waste

     SMALL HYDRO POWER PROJECTS

                         Haryana has a vast canal network which has a potential of generation of about
             30 MW power through small hydro power projects. 

·                                     After identifying the sites, HAREDA invites the proposals from Independent 
           Power Producers through press for setting up these projects.

·                                     Ministry of Non-conventional Energy Sources, Govt. of India provides financial
           incentives for setting up of these projects as per detail given below:

            MNES/GOI INCENTIVES

      WIND POWER PROJECTS

·                                        Haryana has some pockets in the Arawali Hills and Morni Hills areas which are
             known to have considerable wind speeds and can be exploited for generation 
             of  power through wind power projects. 

·                                       HAREDA is assessing the wind power potential of the State and invites  
             proposals from Independent Power Producers through press for setting up 
             these projects.

·                                     Ministry of Non-conventional Energy Sources, Govt. of India provides financial
            incentives for setting up of these projects as per detail given below:

    MNES/GOI INCENTIVES

      BIOMASS POWER PROJECTS

                                 The ministry of  Non-conventional Energy Sources, Govt. of India has been actively
                   promoting utilization of Biomass through Technologies such as briquetting,
                   gasification, combustion and cogeneration.  The combustion and cogeneration
                   routes  are meant for generation  of power in Megawatt scale.  Installation of large
                   project  will necessitate a reliable assessment of  availability of Biomass material.  

                   As it is well known, a large proportion of Biomass generated in the country during
                   agricultural operations is utilize for some or other activity in the rural economy. 
                   Use of  biomass for power generation applications may deprive the cheap  fuel for
                    the poorest sections of the society.  Hence, more than an assessment of total 
                    biomass availability, it is necessary to assess the amount of Biomass, which is
                    surplus, or  can be made available without effecting the present life style of the
                    people.

         Accordingly, MNES/GOI  introduced a scheme “National Biomass Resources
                  Assessment Programme” as a first step in the selection viz, the block level Biomass
                  Assessment Studies are attended to establish the quantity  of surplus biomass
                  available in the taluka with the following objectives:-  

                              -  Identification of Biomass source in the block and assessment of their
                                availability in terms of quality and quantity. 
                              - Estimation of quantum of biomass consumed for various activities in
                                the block. 
                                    -   Estimation of surplus biomass available after accounting for present
                               utilization. 
                                     -    Ascertaining biomass availability, season and mode of   procurement, 
                               storage etc. 
                                     -     Preparation of economics of the proposed Biomass Power Plant.

      These studies can become a tool for planning of different biomass power plants by the respective State Govt. in different reasons, which will, in turn, bring down the regional disparities in availability of power to certain extent.

       In Haryana, these studies have been got conducted in 24 blocks by engaging consultants empanelled  by MNES/GOI.  As per these reports,   a total power potential of 206 MW exist in these 24 blocks through biomass power projects & total power potential of about 1500 MW exists in the State .

    MNES/GOI INCENTIVES

                                                 : Bagasse Co-generation Power Project  : 

For projects by cooperative/public sector/joint sector sugar mills in first category, the floor rate of interest shall not be lower than 6% and projects under other two categories, a floor rate interest of 8% shall apply.

                                                        :  Biomass Power Projects :

Note:- These incentives are subject to the approval of MNES/GOI  and may vary from year to year.

            Biomass cogeneration Projects (Non-baggase) in industry

             Under this programme, co-generation projects (excluding baggase co-generation will be promoted in industry with at least 50% of power for captive use and in the provision for surplus power to be exported to the grid.  Use of conventional fuel upto maximum 25% is allowed in such project.  Ministry will provide central financial assistance (CFA) @ Rs.20.00 lacs per MW to the promoters for installation of biomass co-generation (non-baggase)projects. 

            The capital subsidy would be calculated on the basis of the installed capacity and CFA would be limited to a maximum capacity 5 MW, irrespective of the installed capacity.

          Industry co-generation projects based on conventional fuels and their 
 rejects.

             Under this programme, cogeneration projects based on conventional fuels such as coal, oil, lignite, gas and un/semi-utilized waste/ rejects like dolochar, coal rejects and refinery muds etc. is to be encouraged in industry for meeting power and energy requirements.            Under this programme, only promotional incentives @ Rs.1.00 lac /MW subject to maximum of Rs.5.00 lacs / project for professional technical services would be provided to the consultancy firms for helping to bring a project to financial closure including preparation of DPR.

            Implementation procedure 

            The above projects will be implemented by private and public sector industries including through Energy Service Companies(ESCOS).  IREDA / other financial institutions or commercial banks  shall forward the DPR received from the promotor to the Ministry alongwith their appraisal note indicating the techno-economic viability of the project. After receipt of DPR and appraisal note and copy of loan sanction order, the proposal will be examined by the Ministry and sanction will be issued by providing capital subsidy.  The entire capital subsidy will be released directly to the FI for the purpose of offsetting the loan amount after successful commissioning of the project as per DPR norms. The condition of successful commissioning of the project, would inter alia imply operation of the project for three months, including at least 72 hours continuous operation at minimum 80% operated capacity.  The concerned State Nodal Agencies will closely monitor the execution of the project and ensure their timely completion.

                    Ministry has earmarked a budget of Rs.4.00 crores for implementation of this programme during the year 2005-06.

  ACCELERATED PROGRAMME ON ENERGY RECOVERY FROM URBAN WASTES FOR THE YEAR 2005-06

              The MNES, Govt. of India has launched National Programme on Energy Recovery from Urban Wastes  with the objective to accelerate the promotion of setting up of projects for recovery of energy from urban wastes, to create conducive conditions and environment, with fiscal and financial regime, to develop, demonstrate and disseminate utilization of wastes for recovery of energy and to  harness the available potential of MSW-to-energy by the year 2017. 
            The scheme shall be implemented by Municipal Corporations, other Urban Local Bodies, Govt. institutions and Private Developers having technical and managerial capabilities for implementing such projects.  In cases where debt financing is involved, IREDA, financial institutions or commercial banks shall forward the proposal to MNES along with their Appraisal Notes and all the statutory clearances.  An advance copy of the proposal may be sent to MNES directly.  In case of the self-financed projects, requests accompanied with Detailed Project Reports and all the statutory clearances will need to be sent to MNES before the commencement of execution work for the project.  

            Financial assistance (FA) to be provided for the projects based on different technologies and wastes will be as given below:

            Commercial Projects for MSW in fast track mode

            Projects for power generation from MSW through a two-stage process involving production of RDF by processing of MSW and its combustion for generation of power are proposed to be taken up in a fast track mode.  The strategy includes development of projects for specific cities and inviting bids from project developers and entrepreneurs for setting up these projects on Public Private Partnership basis.  The developers will be selected on the basis of a bid for minimum amount of financial assistance (or viability gap funding)  within an overall ceiling of Rs.1.50 crore per MW.  Thus, the financial assistance to be provided for each project will be determined through a process of competitive bidding after preparing a Detailed Project Report (DPR).  State Nodal Agencies, Municipal Corporations or other professional organizations such as IL&FS, IREDA, HUDCO, TCOs etc. will carry out the project development and bidding through a transparent tendering process.

  
            Projects based on high rate biomethanation technology

              Financial assistance of Rs.2.0 crore/MW will be provided for projects based on power generation from MSW through high rate biomethanation technology.

Demonstration projects for power generation from MSW through new
    technologies

              With the objective of developing indigenous capabilities as well as for demonstration of various new and emerging technologies, financial assistance will be provided to the extent of 50% of the project cost, subject to maximum of RS.3.0 crore/ MW for setting up demonstration projects based on gasification / pyrolysis and plasma arc technologies.

              Power generation at sewage treatment plants  

            Financial assistance @ 40% of the project cost subject to a maximum of Rs.2.0 crore/MW shall be provided  for projects for generation of power from biogas being produced at Sewage Treatment Plants.  Project cost will include the cost of engine genset, H₂S removal plant and other related equipment..

              Power generation from other urban wastes

              Financial assistance @ 50% of project cost subject to upper limit of Rs.3.0 crore/MW shall be provided for setting up projects based on biomethanation technology for power generation from cattle dung, vegetable market and slaughter house wastes generated in the urban areas.  For cattle dung based projects, eligible project capacity would be 250 kW and above.  In case of projects for generation of only biogas for thermal applications, the FA will be limited to Rs.1.0 crore/M.Weq (i.e. biogas production of 12000 cu.m./ day).

               Other provisions

                  -          Any waste of renewable nature or biomass can be mixed to the extent of 25%
                    with MSW.

             -      Financial Assistance provided for any single project will be limited to Rs.8.0 crore
                    for projects in different categories.

  Promotional Incentives

The programme for fast track promotion of projects for power generation from MSW involves development of a project document for specific cities for determining the capital subsidy required as viability gap funding through a process of competitive bidding.  It is expected that State Nodal Agencies, HUDCO, IREDA, IL&FS, TCOs etc. will develop the projects with the help of consultants, as necessary, for the Municipal Corporations and Urban Local Bodies, Project Development Assistance of Rs.10 lacs per project can be provided for this activity involving the following:

            -    Analysis of MSW and assessment of quantity
            -       Identification of project site  
            -    Preparation of MSW collection and transportation plan  
            -    Finalization of tie up with the ULBs for land lease and supply of waste
            -    Finalization of power purchase agreement  
                -        Development of a bankable project with feasibility report and the DPR  
            -    Preparation of the bid document for inviting bids for viability gap funding
            -    Firming up of means of project finance  
            -    Assistance in entire process of bidding
            -    Obtaining all statutory clearances for the project; and  
            -    Providing assistance and supervision during execution and commissioning.

  In case of other projects, financial assistance of 50% of the cost of preparation of Detailed Project Reports subject to a maximum of Rs.1.00 lakh per project will be provided.  This assistance will be released at the time of sanction of financial assistance for the project.

            Detailed guidelines can be obtained from the office of Director, HAREDA on any working day.

  HAREDA SIGNED MEMORANDUM OF UNDERSTANDING (MOU) WITH INDEPENDENT POWER PRODUCERS(IPP) FOR SETTING UP OF BIOMASS,SMALL HYDRO AND WIND ENERGY POWER PROJECTS