Indian context and hence has initiated a number of programmes for promotion of efficient technologies for its use in various sectors of the economy to ensure derivation of maximum benefits Biomass power generation in India is an industry that attracts investments of over Rs.600 crores every year, generating more than 5000 million units of electricity and yearly employment of more than 10 million man-days in the rural areas. For efficient utilization of biomass, bagasse based cogeneration in sugar mills and biomass power generation have been taken up under biomass power and cogeneration programme. The “Biomass power & cogeneration programme” is implemented with the main objective of promoting technologies for optimum use of country’s biomass resources for grid power generation. Biomass materials used for power generation include bagasse, rice husk, straw, cotton stalk, coconut shells, soya husk, de-oiled cakes, coffee waste, jute wastes, groundnut shells, saw dust etc. 6.3 Incentives The Ministry of New and Renewable Energy (MNRE) has been implementing biomass power/co-generation programme since mid nineties. A total of 288 biomass power and cogeneration projects aggregating to 2665 MW capacity have been installed in the country for feeding power to the grid consisting of 130 biomass power projects aggregating to 999.0 MW and 158 bagasse cogeneration projects in sugar mills with surplus capacity aggregating to 1666.0 MW. States which have taken leadership position in implementation of bagasse cogeneration projects are Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh. The leading States for biomass power projects are Andhra Pradesh, Chattisgarh, Maharashtra, Madhya Pradesh, Gujarat and Tamil Nadu. Besides the Central Financial Assistance, fiscal incentives such as 80% accelerated depreciation, concessional import duty, excise duty, tax holiday for 10 years etc., are available for Biomass power projects. The benefit of concessional custom duty and excise duty exemption are available on equipments required for initial setting up of biomass projects based on certification by Ministry. In addition, State Electricity Regulatory Commissions have determined preferential tariffs and Renewable Purchase Standards (RPS). Indian Renewable Energy Development Agency (IREDA) provides loan for setting up biomass power and bagasse cogeneration projects. The Table 6.3 provides a summary of such provisions in different states. Table 6.3: Summary of biomass power cogeneration tariff across states (As on 31.03.2011) State Tariff fixed by Commissions RP0 %
Andhra Pradesh Biomass power Rs.4.28/kWh, (2010-11) Min. 3.75% Rs.3.48/kWh Chattishgarh Biomass power @Rs.3.93/Unit (2010-11) 5% Gujarat Biomass power Rs.4.40/unit (with accelerated depre.) 10% Rs.4.55/unit (with accelerated depre.) for 1st 10 yrs Haryana Biomass power Rs.4.00/unit: 3%escalation (base year 2007-08) 1% Rs.3.74/unit: 3%escalation (base year 2007-08) Karnataka Biomass power Rs.3.66 per unit (PPA signing date) Rs.4.13 (10th year) Min.10% Rs.3.59/unit, (PPA signing date) Rs.4.14/unit (10th Year) Kerala Rs.2.80/unit Biomass power escalated at 5% for five years (2000-01) 3% Maharashtra Biomass power Rs. 4.98 (2010-11) 6% @Rs.4.79/unit (Comm yr.) Madhya Pradesh Rs.3.33 to 5.14 /unit paise for 20 yrs. With escl of 3- 8paise 0.8% Punjab Biomass power Rs.5.05 /unit, (2010-11) escalated at 5% & 5%-BM Min. 3%