India To Add 1700MW of Biomass Co-generation by 2012

Under its 11th Plan period (upto 2012), the Government of India aims to add 1,700 MW capacity through biomass and bagasse cogeneration in many states, including Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka.

It was announced in the Lok Sabha, Lower House of the Central Government Of India, that India aims to utilize the surplus agro residues in the country which have the cumulative biomass power potential of about 18,000 MW. A target for addition of 1,700 MW capacity, consisting of 500 MW of biomass power projects and 1,200 MW of bagasse cogeneration projects has been proposed during XIth plan period i.e. upto 2012.

The States of Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal are having potential for setting up biomass based power projects of 100 MW or above.

Sugar mills having crushing capacity of 2500 Tonnes of cane crushed per day in the States of Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, Andhra Pradesh, Bihar, Gujarat, Punjab and Haryana have an estimated potential of about 5000 MW surplus power generation through optimum bagasse based cogeneration.

The Government is providing incentives for setting up of power generation projects based on biomass and bagasse cogeneration in the form of

• capital subsidy
• fiscal incentives such as accelerated depreciation,
• relief from taxes and duties,
• term loans from Indian Renewable Energy Development Agency (IREDA).