CleanTech/ Renewable Energy, Finance, Other

Waste to energy to get a boost from Budget 2013

According to reports, finance Minister, P Chidambaram promised to incentivise waste-to-energy projects that would come up through public private partnership mode with city municipalities and are neutral to different technologies.

“This is a much needed welcome step. India’s waste to energy potential is enormous and the country has solid waste of around 55 Million tonnes besides 38 Billion litres of sewage every year barring the industrial wastes,” says Indresh Batra, Managing Director, Jindal SAW Ltd.

Government will support municipalities that will implement waste-toenergy projects through different instruments such as viability gap funding, repayable grant and low cost capital, said the FM.

The OP Jindal Group company is the first to run a waste to energy plant. Its plant at Okhla has been running for the past fourteen months. Delhi’s other waste-to-energy plant planned for Ghazipur is being put up by IL& FS Environmental Infrastructure and Services Ltd (IEISL). Such projects have had run in with environmentalists.

“Impetus given to Waste to energy projects undertaken by municipalities by giving them viability gap funding will encourage more cities to adopt waste-to-energy projects… This will further boost more Schemes to allow the cities and municipalities to take up waste to energy projects on PPP mode will encourage more waste – to – energy project, a move Jindal ITF welcomes,” says Mr Batra.

According Delhi based Kuick Research Class I cities contribute 72% to Municipal Solid Waste in urban area and by 2021 towns will contribute 60%, says Jindal SAW.

Sanjay Chakrabarti, Partner & National Leader – Cleantech, Ernst & Young says, “”The FMs unambiguous provisioning of Rs 800 Cr as GBIs for the wind industry is a big positive that is likely to further spur Cleantech investments in India.

While the extension of 801A was on expected lines, the provisioning of concessional loans from IREDA through NCEF and Grants for Waste To Energy projects to Municipalities is also likely to further up the investor sentiment.

Even as the details of the IREDA scheme are awaited it will be a significant boost if the same is made available for larger renewable energy projects””.

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