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Govt plans to boost setting up of biomass power plants .

There is a renewed interest in biomass power plants, which can not only generate electricity but also help dispose of in a carbon neutral manner  agriculture waste, burning of which in Punjab and Haryana is partly blamed for the alarming levels of pollution Delhi is experiencing.

Minister of New and Renewable Energy Piyush Goyal held a meeting of top officials on Monday to consider increasing incentives to boost this segment. “We are thinking of a scheme to encourage setting up of biomass plants using agricultural waste, but I cannot say anything more at the moment,” said Santosh Vaidya, joint secretary at the Ministry of New and Renewable Energy (MNRE), told ET.

The government already provides financial assistance of Rs 20 lakh per MW for setting up biomass power plants, and Rs 15 lakh per MW for co-generation projects by sugar mills (using sugarcane waste left over after juice extraction). Such plants cost around Rs 4.5-6 crore per MW, while generation expense is around Rs 3.25-4.00 per kwH. They are also entitled to concessional import and excise duties while acquiring equipment, as well as a tax holiday for 10 years.

Punjab has an biomass power and co-generation installed capacity of 155.5 MW, of which around 62.5 MW are in operation. In Haryana, the capacity is 45.3 MW. “The Environmental Pollution (Prevention and Control) Authority (EPCA) has been urging the Punjab and Haryana governments to set up biomass power.