Subsidy of producing energy in the scheme of MNRE
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Dear Businessman/Investors, Welcome in KIP’s Blog, today we are going to share with you a New Subsidy Policy which is Subsidy of producing energy in the scheme of MNRE.
To support the setting up of Waste to Energy projects for generation of Biogas/ BioCNG/ Power/ producer or syngas/enriched Biogas/Compressed Biogas, Power/ generation of producer or syngas, the Central Government under the Ministry of New and Renewable Energy (MNRE) has launched the scheme i.e Subsidy of producing energy in the scheme of MNRE which helps in providing Central Financial Assistance (CFA) in respect of successful commissioning of Waste to Energy plants. This is focused on achieving global mission to increase utilization of Biogas/ BioCNG/ Power/ producer or syngas/enriched Biogas/Compressed Biogas in industrial and commercial establishments thereby reducing dependence on fossil fuel based energy sources.
Period of Applicability
The programme will be applicable from FY 2021-22 upto FY 2025-26 and the eligible units have to apply before 31.12.2025 to avail the benefit under this scheme.
Eligible Entities covers under the Subsidy of producing energy in the scheme of MNRE :
- Local Bodies / Municipal Corporations, Govt.
- Central Public Sector Undertaking (CPSU),
- Private Sector Companies, Joint Sector Companies,
- Trusts, NGO, Societies, Cooperatives,
- Partnership firms, Limited Liability Partnerships,
- Energy Service Companies (ESCOs).
Financial assistance available for setting up Waste to Energy plant.
Particulars
BioCNG/Enriched Biogas/ Compressed Bio Gas
Power (based on Biogas)
New Plant
Rs 4.0 Cr per 4800 kg/day upto max. Rs 10Cr
Rs 3.0 Cr per 4800 kg/dayupto max. Rs 10Cr.
Existing Plant
Rs 0.75 Cr/MW upto Max. Rs 5cr.
Rs 0.5 Cr /MWupto Max. Rs 5cr
Power based on bio & agro-industrial waste (other than MSW through incineration process):
Rs 0.4 Cr/MW (maximum CFA of Rs. 5.0 Cr/project)
Biomass Gasifier for electricity/thermal applications:
- a) Rs. 2,500 per kWe with dual fuel engines for electrical application
- b) Rs. 15,000 per kWe with 100% gas engines for electrical application
c) Rs. 2 lakh per 300 kWth for thermal applications.
Note:
- Eligible Central Financial Assistance (CFA) would be 20% higher for plants set up in Special Category States/UTs(NE Region, Sikkim, Himachal Pradesh , Uttarakhand, Jammu & Kashmir, Ladakh, Lakshadweep and Andaman & Nicobar Islands) and Biomethanation plants set up in registered Gaushala/Shelter.
- Service charge @1% of total CFA (minimum of Rs 50,000/-) would be provided for both Implementing Agency and Inspection Agency.
Performance criteria for availment of CFA:-
- CFA to be awarded for Waste to Energy plants, based on the performance of the project for at least three consecutive months, may be seen below-
Average PLF achieved during minimum 3 consecutive months | % of eligible CFA |
≥80% | 100% |
≥ 60% and < 80% | 80% |
≥ 50% and < 60% | 60% |
<50% | 0% |
- The condition of successful commissioning for Biomass gasifier would imply operation of the Gasifier for atleast 3 consecutive months, including continuous operation for at least 3consecutive days at an average PLF of 60% of rated capacity (taking 12 Hrs per day as standard operating hours).
Time Limit for Commissioning of the plant-
After the submission of the application and verification by the department, the authority will approve the project and issue in-principle approval. After obtaining in-principle approval, the project has to be commenced within 24 months for Waste to energy plants and 12 months for Biomass Gasifiers from the date of “In-Principle” approval.
So if you are planning to set up Waste to Energy Plant for generation of Biogas/ BioCNG/ Power/ producer or syngas/enriched Biogas/Compressed Biogas, Power/ generation of producer or syngas, then you get the benefits as mentioned above from the Central Government.
If you want to know more about different subsidy schemes
You can join our Free Business and subsidy update :- As in this plan you will get weekly subsidy update on your email.
Click here to join :- https://forms.gle/WAD9jjJiCK27tcZ8A
If you want set up a COMPRESSED BIO GAS PLANT
Then you can fill this form :- https://forms.gle/hQn33Td4hoL61R468
Contact us at– 8683898080.
Either visit our office:- KIP Financial Consultancy Pvt. Ltd.
DSB – 38, Red Square Market, Hisar – 125001 (HR)
Or you can Join our social media membership.
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