Energy from Urban-Industrial-Agricultural Wastes

The total established capacity of bioenergy in India remained as 9.8 GW as of July 2018. The biomass and cogeneration projects provide 9.5 GW and waste-to-energy (WtE) adds the rest. In order to enhance the efficiency, Ministry of New and Renewable Energy (MNRE) has authorised a

program called “Energy from Urban, Industrial and Agricultural Waste/Residue” with amended terms and conditions from 2017-18 to 2019-20. Waste to Energy projects are included in being setting-up for the generation of Energy from Urban, Industrial and Agricultural Waste and Residues like municipal solid wastes, vegetable, other market wastes, agricultural and industrial wastes & discharges.

Scope of the Programme

In the WtE programme, the Central Financial Assistance (CFA) provides financial support for setting up waste-based biogas or bio-CNG production plants,

power generation plants and biomass gasifiers. These incentives are in the form of capital subsidy and grants-in-aid in regards to the following:

Mass Biogas production from the Industrial waste, Sewage Treatment Plants, Urban & Agricultural Waste and residues through
Power generation or production of Bio-CNG or enriched Biogas from industrial waste, Sewage Treatment Plants, Urban & Agricultural Waste and residues.
Installation of biomass gasifier-based projects in the industry for producing
Marketing and promotional activities consist of R&D projects, Resources assessment, Innovative technology and performance evaluation

Objectives of the Programme

The MNRE has addressed the flaws that have shadowed the Bio-Segment with the following Objectives:

To encourage setting up of projects for energy from urban, industrial and agricultural wastes; and captive power and thermal use through gasification in industries.
To elevate Biomass Gasifier built power plants for generating electricity to meet the growing demand for captive and thermal power.
To enable the lightning of the villages, water pumping and micro-enterprises.
To build conducive conditions and environment, with the monetary and financial system,
To create, establish and disseminate proper utilisation of wastes and residues for energy recovery.

Central Financial Assistance

Central Financial Assistance for different categories of projects is given below:

An Amount of 1 Crore is allotted for the Biogas Generation from the Urban waste or Agricultural Waste or Industrial wastes or Effluents or mix of these wastes that yield 12000 M3 Biogas per day. On the other hand, the maximum amount of Rs.10 crore per project is disbursed.
An Amount of Rs.2 Crore per MW is allotted from the CFA for setting-up a Biogas Generation Unit from the Urban waste at the already existing project and Rs.3 Crores for the New installation. On the other hand, the maximum amount of Rs.10 crore per project is disbursed.
An Amount of Rs.3 Crore per MW is allotted from the CFA for setting-up a Bio-CNG based Biogas Generation Unit from the Urban waste yielding 12000 M3 Biogas per day at the already existing project and Rs.4 Crores for the New installation. On the other hand, the maximum amount of Rs.10 crore per project is disbursed.
For the Biomass gasifier based Thermal and Electrical Industries:
- 2,500 per kW with dual-fuel engines is applicable for the Biomass gasifier based Captive Power & thermal applications in industries
- 15,000 per kW with 100% gas engines is provided for the Distributed/off-grid power for villages using biomass gasifier systems.
Rs.2 Lakhs per 300 KW is established for the Thermal
State Nodal Agencies provides an incentive in the form of service charge @ Rs.1% of the eligible CFA. The Maximum incentive maximum is up to Rs.5 lakhs per project in order to expedite the development of projects.
A sum of Rs.3 Lakhs per event or program is endorsed for structuring training courses, business meets, seminars/workshops and publicity/awareness on a case-to-case basis.

Implementation Arrangement

The scheme is implemented with the support of the following agencies:

StateNodal Agencies (SNA)
UrbanLocal Bodies/Municipal Corporations
Private or public sector enterprises or organisations
Energy Service Companies (ESCOs)
Waste to Energy project proposals aids for financial support, presented by the promoters to the Ministry through the financial institutions with all statutory clearances before commissioning the plant.
Gasifier projects proposals are directly tendered to the Ministry through SNA for pursuing financial support.

Release of Central Financial Assistance

Waste to Energy Projects:

On successful project completion, the entire compensation of CFA is disbursed to the promoters financial account in their prescribed bank.
No waste to Energy project is possible without acquiring the loan, as well no advance CFA is also applicable for any such projects.
The CFA is released on the successful commission of the project with:
- Efficient continuous operation for 72 hours at minimum 80% of its rated capacity
- And the successful running should be continuous for the next three months.

Biomass Gasifier:

Biomass Gasifier are self-financed projects that have the CFA released directly to the user through DBT.
The beneficiary is not a manufacturer and maybe a promoter or developer. No advance CFA is also applicable for any such projects.
The incentive to State Nodal Agencies is released at the time of settlement of the account of the
The loan after successful commissioning can be availed with the submission of all required documents of the project.
The CFA is released on the successful commission of the project with
- Efficient continuous operation for 72 hours at minimum 60% of its rated capacity
- And the successful running should be continuous for the next three months.

Monitoring Mechanism

The State Nodal Agencies concerned monitors the execution of the projects and provide guidance for its appropriate
SNA is liable for the periodic submission of the progress report to the MNRE.
MNRE assigns a Monitoring Committee with the representatives from MNRE, financial institution(s)/banks, Technical Institutions and State NodalAgencies to monitor the progress of implementation of the projects as well as their performance.
The final deciding authority is the MNRE, Government of India.

Documents to be submitted for Central Financial Assistance (CFA):

Application in the prescribed format (Annexure-II) (Provide the link)
Copy of Detailed ProjectReport, Commissioning Completion Report
Layout of the plant and its associated subunits.
Technical Specifications of the Digester/Compressor/BiogasEngine/Turbine.
Progress report of the project with a tentative date of commissioning along with photographs.
Copy of the Certificate of Incorporation.
Assurance that there is no subsidy claimed from other institution and keeping the plant operational for a minimum period of 10 years on non-judicial stamp paper of Rs.100.
Clearance certificate from State Pollution Control Board.
Approval for layout plan of the Bio-CNG Plant from Petroleum and Explosives Safety Organization (PESO), Nagpur, if applicable.
Performance report of Biogas/bio-CNG/power generation for 3 months
Hourly data for 72 hours on continuous operation of Biogas/bio-CNG/power generation.
Land Document translated in English.
Raw Material Details Invoice/Agreement, if applicable.
Agreement for sale of Bio-CNG, if applicable.
PPA valid for at least 10 years, if applicable.
Loan Sanction Letter(s) of Financial Institutions.
Appraisal Note by Bank.

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Frequently Asked Questions

Common questions about Energy from Urban Industrial Agricultural Wastes.

The Energy from Urban, Industrial and Agricultural Waste/Residue program is an initiative by the Ministry of New and Renewable Energy (MNRE) in India that aims to promote the generation of energy from various waste sources, including municipal solid waste, vegetable waste, industrial waste, and agricultural residues. The program provides financial assistance in the form of capital subsidies and grants for setting up biogas, bio-CNG, and power generation plants utilizing these waste resources.

The key objectives of this program are to encourage the establishment of projects for energy generation from urban, industrial, and agricultural wastes, promote the use of biomass gasifiers for captive power and thermal applications in industries, enable electrification of villages and support micro-enterprises through biomass gasification, create a conducive environment for proper utilization of wastes and residues for energy recovery, and disseminate awareness about the benefits of waste-to-energy technologies.

The program provides CFA for various types of projects, including biogas production from industrial waste, sewage treatment plants, urban and agricultural waste and residues; power generation or bio-CNG production from these waste sources; and installation of biomass gasifiers in industries for captive power and thermal applications.

The CFA is determined based on the project type and capacity. For example, biogas generation from urban, agricultural, or industrial waste yielding 12,000 m³ of biogas per day is eligible for Rs. 1 crore, with a maximum limit of Rs. 10 crore per project. For biomass gasifier-based captive power and thermal applications, the CFA ranges from Rs. 2,500 per kW to Rs. 15,000 per kW, depending on the type of engine used.

Waste-to-energy project proposals seeking financial assistance must be submitted to the MNRE through financial institutions, along with all necessary statutory clearances before commissioning the plant. Biomass gasifier project proposals are submitted directly to the MNRE through the State Nodal Agencies (SNAs). The CFA is released after successful project commissioning and meeting the specified performance criteria.

The State Nodal Agencies (SNAs) monitor the execution and performance of the projects and provide guidance. The SNAs are required to submit periodic progress reports to the MNRE. Additionally, a Monitoring Committee comprising representatives from MNRE, financial institutions, technical institutions, and SNAs is assigned to monitor the implementation and performance of the projects.

Some of the key documents required for applying for CFA under this program include the application in the prescribed format, detailed project report, commissioning completion report, plant layout and technical specifications, progress report, certificate of incorporation, clearance from the State Pollution Control Board, performance reports, land documents, raw material details, power purchase agreements (if applicable), loan sanction letters, and bank appraisal notes.

The State Nodal Agencies (SNAs) play a crucial role in the implementation of the Energy from Urban, Industrial and Agricultural Waste/Residue program. They are responsible for monitoring the execution of projects, providing guidance, and submitting periodic progress reports to the MNRE. Additionally, the SNAs are eligible for a service charge incentive of 1% of the eligible CFA, subject to a maximum of Rs. 5 lakhs per project.

No, the program guidelines explicitly state that projects receiving CFA under this program should not claim any subsidy from other institutions. Applicants are required to provide an assurance on a non-judicial stamp paper of Rs. 100 that they will not claim any subsidy from other sources and will keep the plant operational for a minimum period of 10 years.

The program provides a sum of Rs. 3 lakhs per event or program for organizing training courses, business meets, seminars/workshops, and publicity/awareness activities on a case-to-case basis. These activities should be focused on promoting and disseminating information about waste-to-energy technologies and best practices.