Central Financial Assistance (CFA) for MSW based Projects:
Financial Assistance (FA) to be provided for projects based on different technologies
and wastes will be as given below:
Commercial Projects based on Municipal Solid Waste in fast track mode:
Projects for power generation from MSW through a two-stage process involving production
of RDF by processing of MSW and it's combustion for generation of power is proposed
to be taken up in a fast track mode. The strategy includes development of projects
for specific cities and inviting bids from project developers and entrepreneurs
for setting up these projects on public private partnership basis. The developers
will be selected on the basis of a bid for minimum amount of financial assistance
(or 'viability gap' funding) within an overall ceiling of Rs 1.50 crore per MW.
Thus, the financial assistance to be provided for each project will be provided
for each project will be determined through a process of competitive bidding after
a Detailed Project Report (DPR). State Nodal Agencies, Municipal Corporations or
other professional organizations such as IL&FS, IREDA, HUDCO, TCOs etc, will carry
out the project development and bidding through a transparent tendering process.
Projects based on high rate biomethanation technology:
Financial assistance of Rs.2.0 crore/MW will be provided for projects based on power
generation from MSW through high rate biomethanation technology.
Demonstration Projects for Power generation from MSW through new technologies
With the objective of developing indigenous capabilities as well as for demonstration
of various new and emerging technologies, financial assistance will be provided
to the extent of 50% of the project cost, subject to a maximum of Rs. 3.0 crore
/ MW for setting up demonstration projects based on gasification/pyrolysis and plasma
Power generation at sewage treatment plants:
Financial assistance @ 40% of the project cost subject to a maximum of Rs.2.0 crore/MW
shall be provided for projects for generation of power from biogas being produced
at Sewage Treatment Plants. Project cost will include the cost of Engine-Genset,
H2S removal plant and other related equipment.
Power generation from other urban Wastes:
Financial assistance @ 50% of project cost subject to upper limit of Rs.3.0 crore/MW
shall be provided for setting up projects based on biomethanation technology for
power generation from cattle dung, Vegetable market and slaughterhouse Wastes generated
in the urban areas. For cattle dung based projects, eligible project capacity would
be 250 KW and above. In case of projects for generation of only biogas for thermal
application, the FA will be limited to Rs. 1.0 crore/Mweg (i.e. biogas production
of 12000 cu.m/day).
Central Financial Assistance to Energy/Power Generation from Industrial and commercial
Wastes and effluents.
Other incentives from GOI
Financial assistance of 50% of the cost of Preparation of DPR to a maximum of Rs.1.00
lakhs/ per project will be reimbursed to the promoters at the time of sanction of