Lok Sabha Question No. 4121 (UNSTARRED), answered on 2015-08-13
Subject: Bio-Mass Possibilities
Ministry: NEW AND RENEWABLE ENERGY
Asked by: PARASURAMAN K.

## LOK SABHA UNSTARRED QUESTION NO. 4121 TO BE ANSWERED ON 13.08.2015

## BIOMASS POSSIBILITIES

| Question                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Answer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| SHRI K. PARASURAMAN                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | MINISTERFORNEWANDRENEWABLEENERGY (SHRI PIYUSH GOYAL)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Will the Minister of New and Renewable Energy be pleased to State: a) Whether it is a fact that the energy generation through bio-mass is negligible in the country; b) If so, whether there is any specific power generation scheme through bio-mass being implemented in the country, if so, the details thereof and if not, the reasons therefor; c) Whether the Government has contemplated any plan to explore the possibilities for setting up of power generation units of bio-mass in the country, if so, the details thereof; and d) The other steps taken by the Government to encourage biomass possibilities? | (a): No, Sir. Grid Interactive Biomass Power Projects of an aggregate capacity of 4420 MW are in operation in the country, generating 1,900 million units of electricity per day. (b): Ministry of New and Renewable Energy is implementing a scheme on Promotion of Grid Interactive Biomass Power and Bagasse Co- generation in Sugar Mills, which provides Central Financial Assistance (CFA). Details of the incentives provided under the scheme are given at Annexure. (c) Biomass Resource Atlas developed by Indian Institute of Science (IISc) Bangalore, with the financial support of the Ministry, has estimated a potential of 2100 MW of power generation from crop residues from field, residues from agro processing industries and bagasse cogeneration in sugar mills. (d): In addition to Central Financial Assistance, Govt. of India also provides Fiscal Incentives such as Accelerated Depreciation, Exemption on Excise Duty, Concessional Custom Duty, Preferential Tariff to Biomass Power Projects and Financial Support for R&D activities, Organisation of Seminars/Workshops Studies on Biomass Resource Assessment, etc. |

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED  QUESTION NO. 4121 TO BE ANSWERED ON 13.08.2015

## BIO-MASS POSSIBILITIES

## 4121.   SHRI K. PARASURAMAN:

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether it is a fact that the energy generation through bio-mass is  negligible in the country;
- (b) if  so,  whether  there  is  any  specific  power  generation  scheme  through  bio-mass  being implemented in the country, if so, the details thereof and if not, the reasons therefor;
- (c) whether the Government has contemplated any plan to explore the possibilities for setting up of power generation units of bio-mass in the country, if so, the details thereof; and
- (d) the other steps taken by the Government to encourage bio-mass possibilities?

## ANSWER

## THE MINISTER OF STATE FOR POWER, COAL & NEW AND RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

- (a): No, Madam. Grid Interactive Biomass Power Projects of an aggregate capacity of 4420 MW are in operation in the country, generating 1,900 million units of electricity per day.
- (b): Ministry of New and Renewable Energy is implementing a scheme on Promotion of Grid Interactive  Biomass  Power  and  Bagasse  Co-generation  in  Sugar  Mills,  which  provides  Central Financial  Assistance (CFA).   Details  of  the  incentives  provided  under  the  scheme  are  given  at Annexure.
- (c) : Biomass Resource Atlas developed by Indian Institute of Science (IISc) Bangalore, with the financial support of the Ministry, has estimated a potential of 2100 MW of power generation from crop residues from field, residues from agro processing industries and bagasse cogeneration in sugar mills.
- (d): In addition to Central Financial Assistance, Govt. of India also provides Fiscal Incentives such  as  Accelerated  Depreciation,  Exemption  on  Excise  Duty,  Concessional  Custom  Duty, Preferential  Tariff  to  Biomass  Power  Projects  and  Financial  Support  for  R&D  activities, Organisation of Seminars/Workshops Studies on Biomass Resource Assessment, etc.

ANNEXURE Annexure referred to in reply to Part (b) of the Lok Sabha Unstarred Question No. 4121 for 13.08.2015 CFA for Biomass Power Project and Bagasse Cogeneration Projects by

## Private/Joint/Coop./Public Sector Sugar Mills

|                                                                                                                    | Special Category States (NE Region, Sikkim, J&K,HP& Uttarakhand                                    | Other States                                                                                       |
|--------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| Project Type                                                                                                       | Capital Subsidy                                                                                    | Capital Subsidy                                                                                    |
| Biomass Power projects                                                                                             | Rs.25 lakh X (C MW)* (Maximum Support of Rs 1.5 Crore per Project.)                                | Rs.20 lakh X (C MW)* (Maximum Support of Rs 1.5 Crore per Project.)                                |
| Bagasse Co-generation by Private sugar mills                                                                       | Rs.18 lakh X (C MW)* (Maximum Support of Rs 1.5 Crore per Project.)                                | Rs.15 lakh X (C MW)* (Maximum Support of Rs 1.5 Crore per Project.)                                |
| Bagasse Co-generation projects by cooperative/ public sector sugar mills 40 bar &above 60 bar &above 80 bar &above | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWofsurplus power (maximum support Rs. 6.0 crore per project) | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWofsurplus power (maximum support Rs. 6.0 crore per project) |

## *C is capacity in MW

CFA for bagasse cogeneration project in cooperative/public sector sugar mills implemented by  IPPs/State  Government  Undertakings  or  Special  Purpose  Vehicle  (Urja  Ankur  Trust) through BOOT/BOLT model

| PROJECT TYPE                              | MINIMUM CONFIGURATION       | CAPITAL SUBSIDY                                                                                             |
|-------------------------------------------|-----------------------------|-------------------------------------------------------------------------------------------------------------|
| Single coop. mill throughBOOT /BOLT Model | 60 bar& above 80 bar& above | Rs. 40 lakh/MW of surplus power Rs. 50 lakh/MW of surplus power (maximum support Rs. 6.0 crore/ sugar mill) |

Power generated in a sugar mill (-) power used for captive purpose i.e. Net power fed to the grid during season in a sugar mill.

## CFA for bagasse cogeneration project in existing cooperative sector sugar mills employing boiler modifications

| PROJECT TYPE                    | MINIMUM CONFIGURATION                     | CAPITAL SUBSIDY                                                                                 |
|---------------------------------|-------------------------------------------|-------------------------------------------------------------------------------------------------|
| Existing Cooperative Sugar Mill | 40 bar &above 60 bar &above 80 bar &above | Rs. 20 lakh/MW of surplus power Rs. 25 lakh/MW of surplus power Rs. 30 lakh/MW of surplus power |