F.No. 2/2/2005 -UICA
Government of India
Ministry of New and Renewable Energy
(Urban, Industrial & Commercial Applications Group)
Block No. 14, CGO Complex
Lodi Road, New Delhi – 110 003
Date : 25th July, 2005
To
- Chief Secretaries of State Governments
- Administrators of Union Territories
- Heads of State Nodal Agencies
- Heads of IREDA / Banks / FIs
Subject : Programme on Biomass Energy and Co-generation (non-bagasse) in
Industry for implementation in 2005-06.
Sir,
I am directed to convey the sanction of the Government of
India for the implementation of the Programme on “Biomass Energy and
Co-generation (non-bagasse) in Industry” during 2005-06. The scheme provides
for Central Financial Assistance for setting up of biomass co-generation (non-bagasse)
and biomass gasifier projects for generation of thermal and electrical energy in
industries and incentives to State Nodal Agencies and Financial Institutions.
The scheme also provides for Grants-in-Aid to State Nodal Agencies, NGOs and
other concerned institutions for promotional activities i.e. for organizing
seminars, workshops, training / orientation programmes, technology validation,
strategic studies, industry-wise sectoral studies and performance monitoring
& evaluation, etc. and promotional incentives for co-generation projects
based on conventional fuels and rejects.
-
Objectives
The main objectives of the programme on Biomass Energy and Co-Generation
(non-bagasse) in Industry are given below :-
i)
To encourage the deployment of biomass energy systems in industry for
meeting thermal and electrical energy requirements.
ii)
To promote decentralized / distributed power generation through supply of
surplus power to the grid.
iii)
To conserve the use of fossil fuels for captive requirements in industry.
iv)
To bring about reduction in greenhouse gas emissions in industry.
v)
To create awareness about the potential and benefits of alternative modes
of energy generation in industry.
-
Scope
The Programme will cover the following types of projects and other
activities:
i)
Biomass gasifiers for
thermal and electrical applications in industry
The deployment of small scale gasifiers has already been demonstrated for
electrical and thermal energy applications.
Greater thrust is proposed to be provided for the deployment of gasifiers
of higher capacity, to
operate on diversity of biomass feed material, and for specific segments of
industrial applications for captive power generation and production of thermal
energy or co-generation of heat and power.
Deployment of 100% producer gas engines will be encouraged for achieving
higher efficiency and eliminating use of fossil fuels.
ii)
Biomass Co-generation Projects
To meet the requirement of captive power and thermal energy, the
installation of biomass co-generation projects ( excluding bagasse co-generation
) is to be promoted in industry, with at least 50% of power for captive use, and
a provision for the surplus power to be exported to the grid.
This will increase the use of non-conventional energy sources and
conserve the use of fossil fuels such as coal, oil and natural gas. Use of maximum of 25% conventional fuels would be
allowed in such projects.
iii)
Industrial Co-generation
Projects based on Conventional Fuels and their Rejects
The installation of co-generation projects based on conventional fuels
such as coal, oil, lignite, gas and un/semi-utilized wastes / rejects like
dolochar, coal rejects and refinery muds, etc., is to be encouraged in industry
for meeting power and energy requirements.
iv)
Other Promotional Activities
Other promotional activities would cover potential / resource assessment,
preparation of DPRs, organization of seminars / workshops /
conferences, interactive / business meets, awareness creation activities, and
other professional technical services.
-
Central Financial Assistance (CFA)
Central Financial Assistance in the form of capital
subsidy would be provided to biomass gasifier projects and biomass co-generation
(non-bagasse) projects in industries.
However,
in respect of co-generation projects based on conventional fuels and
their rejects, Central Financial Assistance would be provided only for
promotional and awareness creation activities.
The details of Central Financial Assistance and other provisions are
given below :
4.1 Capital
subsidy for Biomass Gasifiers for thermal and electrical applications
i)
Rs. 2.0 lakh / 300 KW th for thermal applications.
ii)
Rs. 2.5 lakh / 100 KWe for electrical applications through
dual fuel engines.
iii)
Rs. 8.00 lakhs / 100 Kwe
for
100% producer gas engines with gasifier system.
iv)
Rs. 6.00 lakhs / 100 Kwe for 100% producer gas engine alone.
4.2
Capital
subsidy for Biomass Co-generation (non-bagasse) projects
Capital subsidy @ Rs. 20.00 lakhs/MWe
would be provided to promoters for installation of Biomass
Co-generation (non-bagasse) projects, including captive projects based on direct
combustion.
4.3
The
capital subsidy will be considered subject to the following :-
i)
The amount of capital subsidy would be calculated on the basis of
installed capacity;
ii)
CFA would be limited to a maximum capacity of 5 MW, irrespective of the
installed capacity of the project.
iii)
In case of Special Category
States (NE Region, Sikkim, J&K, Himachal Pradesh and Uttaranchal),
20% higher capital subsidy
than
that for General Category States would be provided.
4.4
Incentives for the
installation of co-generation projects based on conventional fuels and rejects
Promotional incentives @ Rs. 1.00 lakh / MW,
subject to maximum of
Rs. 5.00 lakhs/project for professional technical services would be
provided to consultancy
firms helping to bring a project to financial closure including preparation of
DPR.
4.5
Incentives / service charges to SNAs.
Incentives / service charges @ Rs. 1.00 lakh / MWe ( or
equivalent ) would be provided to SNAs on pro-rata basis,
subject to a ceiling of Rs. 5.00 lakh / project, including for Industrial
Co-generation projects, for their active involvement in promoting Biomass Power
/ Co-generation projects .
4.6
CFA for organizing business meets, seminars, workshops, orientation
and training programmes, etc.
CFA upto Rs. 3.00 lakh / event would be considered for organization of
business meets, seminars, workshops, orientation programmes and training
programmes, etc..
4.7
CFA for technology validation, strategic studies, industry-wise sectoral
studies and performance monitoring & evaluation etc.
CFA upto Rs. 5.0 lakhs, on case-by-case basis, would be considered for
technology validation, strategic studies, industry-wise sectoral
studies and performance monitoring & evaluation etc. to institutions /
industries. This will be governed
by the procedures / guidelines being issued by the R&D Division of MNRE
separately.
-
Implementation
Arrangements
5.1 The projects will be implemented by private and public
sector industry, including through Energy Service Companies (ESCOs), in which
case the ESCO would be eligible for the CFA.
5.2 IREDA, other financial institutions or commercial banks
shall forward the Detailed Project Reports received from the promoters / ESCOs
to the Ministry along with their Appraisal Note indicating the techno-economic
viability of the projects, taking into account the eligible capital subsidy. The
promoters would be required to also submit an advance copy of their proposal to
the Ministry directly. The prescribed format for submission of the proposal is
given in the Annexure.
5.3 For projects to be implemented by the promoter without
debt financing / loans from domestic FIs / banks, the proposals should be
directly submitted to the Ministry for financial support.
5.4 After receipt of DPR from promoters, Appraisal Note and
copy of loan sanction order from IREDA / lead bank / FI, and other requisite
information / documents from the promoters, the proposal will be examined in the
Ministry and sanction will be issued for providing capital subsidy in accordance
with the provisions of scheme.
-
Release of Central Financial
Assistance (CFA)
6.1
The entire capital subsidy amount would be released directly to the lead bank
/ lending financial institution for the purpose of offsetting the loan amount
after successful commissioning of project as per DPR norms and receipt of
copies of statutory clearances and requisite project relating information /
documents. The condition of successful commissioning of the project would
inter-alia imply operation of the project for three months, including at least
72 hours continuous operation at minimum 80% of rated capacity.
6.2 In case the project is set up by the promoters
through their own resources, the CFA would be released directly to promoters
after successful commissioning of the project ( as per item 6.1 above ).
6.3 The incentives to State Nodal Agencies would be
released after successful commissioning of the project.
-
Monitoring
Mechanisms
7.1
The concerned State Nodal Agencies will closely monitor the execution of the
projects and ensure their timely completion. They would be required to submit
periodic progress reports to MNRE.
7.2 MNRE will also monitor the progress of implementation of
the projects as well as their performance through a Monitoring Committee
consisting of representatives from MNRE, financial institution (s) / banks and
State Nodal Agencies.
-
The aforesaid programme is subject to change (s) and
modification (s) as may be decided by the MNRE, Govt. of India from time to
time, and subject to availability of funds. The Ministry shall in no way be
liable for expenditure incurred by promoters for pre-project preparation or
other activities, merely on the basis of this circular and / or related
announcements by the Ministry. In case of any dispute on interpretation of
any provision under the scheme, the decision of the Ministry shall be final
and binding.
-
The funds required for the implementation of the
programme would be met out of allocated budget of Rs. 4.00 crores from the
Budget Head 2810, Bio-energy, Sub-head 03.00.33 – Subsidies, 02.00.31 –Grants-in-Aid,
05.01.33-Subsidies and 05.01.31 – Grants-in-Aid for the year 2005-06
(Plan).
-
This issues in exercise of powers delegated to this
Ministry and with the concurrence of IFD, MNRE vide their sanction No. IFD/SAN/106/168/2005-06
dated 25th July 2005.
Yours faithfully,
(R.C. TIWARI)
DIRECTOR
CC:
1. Secretary, Ministry
of Environment & Forests.
2. Secretary, Planning Commission.
3. Managing Director, IREDA and other Financial
Institutions/ Banks
4. R&D Institutions.
5. Consultants / Consultancy Organizations.
6. Business / Industry Associations.
Copy for information to:
1 . PS to MOS (NES)
2. Sr. PPS to Secretary, MNRE.
3. AS & FA, MNRE
4. Sr. Advisor, MNRE.
5. All Advisors/ Joint Secretary
6. All Directors, MNRE
7. All Regional Offices of MNRE.
8. File No. 2/2/2005-UICA
F.No.
2/2/2005 -UICA
Government
of India
Ministry
of New and Renewable Energy
(Urban,
Industrial & Commercial Applications Group)
Block
No. 14, CGO Complex
Lodi
Road, New Delhi – 110 003
Date
: 8th February,
2006
To
-
Chief Secretaries of State Governments
-
Administrators of Union Territories
-
Heads of State Nodal Agencies
-
Heads of IREDA / Banks / FIs
Subject :
Programme on Biomass Energy and Co-generation (non-bagasse) in Industry
for implementation in 2005-06
–
reg.
Sir,
I
am directed to convey the sanction of the Government of India for
incorporating the following modifications with immediate effect in this
Ministry’s scheme sanctioned vide letter of even number dated 25.07.2005 on
the above mentioned subject :
1.
The name of the programme hereinafter will be known as “Programme
on Biomass Energy and Co-generation (non-bagasse) in Industry and Institutions”.
2.
Capital subsidy for biomass gasifiers coupled with 100% producer gas
engine in industry would be as follows :
i)
Rs. 10.00 lakhs per 100 KWe for 100% producer gas engine with gasifier
systems.
ii)
Rs. 8.00 lakhs per 100 KWe for 100% producer gas engine alone.
3.
Deployment of biomass
gasifiers with 100% producer gas engines in Institutions for captive use
Institutions
such as Engineering / Medical Colleges and Religious / Charitable institutions
working purely on non-profit basis and not registered under Companies Act will
also be covered under the Scheme.
Institutions
that have already set up gasifier system with 100% producer gas engine under
SADP programme will not be covered under this Scheme.
The capital subsidy for institutional gasifier
systems would be as follows :
a)
Rs. 15.00 lakhs per 100 KWe for 100% producer gas engine
coupled with gasifier system.
b)
Rs. 10.00 lakhs per 100 KWe for 100% producer gas engine alone.
4.
The rates of subsidy indicated at para Nos. 2 & 3 above would be
applicable only for the projects based on spark-ignition IC engines.
5.
All other terms and conditions of the sanction dated 25.07.2005 will
remain unchanged.
6.
This
issues in exercise of powers delegated to this Ministry and with the
concurrence of IFD, MNRE vide their sanction No. IFD/SAN/106/780/2005-06 dated
20th January, 2006.
Yours
faithfully,
(R.C. TIWARI)
DIRECTOR
Ph.No.
24362356
CC:
1.
Secretary, Ministry of Environment & Forests.
2.
Secretary, Planning Commission.
3.
Managing Director, IREDA and other Financial Institutions/ Banks
4.
R&D
Institutions.
5.
Consultants / Consultancy Organizations.
6.
Business / Industry Associations.
Copy for information to:
1
.
PS
to MOS (NES)
2.
Sr. PPS to Secretary, MNRE.
3.
AS
& FA, MNRE
4.
Sr. Advisor, MNRE.
5.
All Advisors/ Joint Secretary
6.
All
Directors, MNRE
7.
All
Regional Offices of MNRE.
8.
File No. 2/2/2005-UICA
