The Ministry of New and Renewable Energy is implementing Programme on energy recovery from urban and industrial wastes, which, inter-alia, includes setting up of five pilot projects based on municipal solid waste / garbage.
The programme provides for central financial assistance @ Rs 2.00 crore per megawatt limited to Rs. 10.00 crore per project for five pilot projects based on garbage set up by State Nodal Agencies, Urban Local Bodies/ Municipal Corporations or entrepreneurs. In addition, customs and excise duty concessions are also provided for initial setting up of these projects.
The projects being set up presently are based on Biomethanation, combustion and gasification technologies followed by engines or turbines for power generation. The projects at Bangalore, Delhi and Hyderabad are employing combustion technology based on reciprocating grate boilers, whereas the project at Pune and Solapur are based on gasification and biomethanation technologies, respectively. These projects are being set up on Build, Own, Operate and Transfer basis. These are considered viable and will supply power to the State Transmission Companies at a tariff of Rs. 2.59 to 4.25 per kWh, which is comparable with the cost of conventional power.