The government has given its nod for a grant of Rs 478 crore to the waste-to-energy (WTE) programme for the remaining period of financial year 2019-20 (FY20).
It has also approved a physical target of 257 megawatt (MW) for the mentioned 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 said.
The CFA would be in the form of capital subsidy and grants-in-aid, it added.
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The guidelines added that projects based on WTE conversion technologies such as biomethanation, combustion, gasification, pyrolysis or any new technology as approved by MNRE would be eligible for CFA.
The scheme has been revised to include 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.