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Financial Management

Union Budget 2013: Waste to energy funds likely to help Chennai corporation

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The Times of India                  01.02.2013

Union Budget 2013: Waste to energy funds likely to help Chennai corporation

CHENNAI: The city corporation, which is planning to implement waste-to-energy projects, is likely to benefit from the Centre's announcement of funding for such projects set up through public-private partnerships. Chennai Corporation and waste management companies welcomed the move, but said it would be effective only if substantial funds were allotted.

Finance minister P Chidambaram announced evolving "a scheme to encourage cities and municipalities to take up waste-to-energy projects in PPP mode" . "The support would be through different instruments such as viability gap funding, repayable grant and low cost capital ," he said.

While corporation officials refused to comment since they had not received a notification, they said it was a sign that the Centre supports the technology. "We have not decided on the technology we will adopt. We will wait for the state's instructions." said an official.

In October 2012, the corporation identified four sites to set up solid waste management plants — Malaipattu, Minjur, Vallur and Kuthambakkam. Two weeks ago, it invited bids from 16 private companies to set up waste management plants at Minjur and Kuthambakkam. Thirteen companies propose waste to energy in PPP mode as specified in the Budget. The civic body might be a contender for gap viability funding or repayable grants. Experts said the allocation would be useful only if it is a sizeable figure. "We have a thumb rule that 60 metric tonnes of garbage should produce 1MW of power. This requires 1.4 crore of investment," said Ram Mohan Rao of Ramky Enviro Engineering . "If the civic body wants us to handle 4,500 tonnes, they need an investment of 1,050 crore from us," he said. Once the company sets up the plant, the operational cost of incinerating the waste has to be paid by the corporation, which can earn revenue from selling the power generated.

Environmentalist Dharmesh Shah said waste-to-energy technology is outdated. "A decentralized way of dealing with garbage will help poverty alleviation."

Last Updated on Friday, 01 March 2013 12:11
 

Corporation recycling project in line with budget incentive

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The Hindu                01.03.2013

Corporation recycling project in line with budget incentive

Special Correspondent 

Civic body to generate power by processing accumulated garbage

The Madurai Corporation’ proposal to generate power by processing its accumulating garbage would benefit fromthe announcement in the Union Budget that the Centre would encourage the local bodies to take up waste-to-energy projects.

Union Finance Minister P. Chidambaram, while presenting the Union Budget in Parliament on Thursday, said that the Centre would support cities and municipalities in those projects by way of viability gap funding, repayable grant and low cost capital.

Madurai Corporation has already prepared a proposal to set up a 10 mega-watt power unit at the Vellaikkal dump yard. This plan is part of a basket of projects the city has proposed to implement under Phase II of the Jawaharlal Nehru National Urban Renewal Mission (JnNRUM), the City Engineer (in-charge), A. Mathuram, said.

The city has already set up a waste processing unit at Vellaikkal dump yard to manufacture organic manure using the 400 tonnes of garbage collected daily by the 72 wards of the old city.

The project was implemented under Phase I of JnNRUM at a cost of Rs.30 crore.

“Now that the city’s boundaries have been expanded and the quantity of garbage generated every day has increased in the old city limit too, we are generating an additional 300 tonnes. We are planning to use this garbage for power generation,” Mr. Mathuram said.

The city proposes to use ‘Pyrolysis’ technique – a new technology for decomposition of the garbage to produce gas that could be used to generate power.

The cost of the project has been estimated at around Rs. 40 crore.

The project has been planned for implementation through public-private partnership.

Builders upset

The Builders’ Association of India (BAI) has expressed disappointment over the Union Budget 2013, describing it as one that was not very encouraging to industrialists and the general public who are struggling to cope with high inflation for a long time.

Its former president and national trustee, V. Ramachandran, said that BAI and other construction associations were expecting relief in taxes, particularly in the housing and infrastructure sector.

Rental housing

It expected the Government to encourage rental housing, reduce the interest burden, increase incentives in interest and principal amount on the purchase of apartments, expedite the clearance from the Ministry of Environment and encourage the power sector.

However, they were not met with a suitable response from the Government, he said in a statement.

Bold initiatives

The Government should come out with bold initiatives such as quicker approval of projects, availability of finance at competitive rates, streamlining of the tax structure in order to ensure growth and development, he said.

No major power project has been considered despite several States being in darkness and small and large industries floundering, though Rs.800 crore has been allotted to set up non-conventional energy units.

 

Corporation recycling project in line with budget incentive

Print PDF

The Hindu                01.03.2013

Corporation recycling project in line with budget incentive

Special Correspondent 

Civic body to generate power by processing accumulated garbage

The Madurai Corporation’ proposal to generate power by processing its accumulating garbage would benefit fromthe announcement in the Union Budget that the Centre would encourage the local bodies to take up waste-to-energy projects.

Union Finance Minister P. Chidambaram, while presenting the Union Budget in Parliament on Thursday, said that the Centre would support cities and municipalities in those projects by way of viability gap funding, repayable grant and low cost capital.

Madurai Corporation has already prepared a proposal to set up a 10 mega-watt power unit at the Vellaikkal dump yard. This plan is part of a basket of projects the city has proposed to implement under Phase II of the Jawaharlal Nehru National Urban Renewal Mission (JnNRUM), the City Engineer (in-charge), A. Mathuram, said.

The city has already set up a waste processing unit at Vellaikkal dump yard to manufacture organic manure using the 400 tonnes of garbage collected daily by the 72 wards of the old city.

The project was implemented under Phase I of JnNRUM at a cost of Rs.30 crore.

“Now that the city’s boundaries have been expanded and the quantity of garbage generated every day has increased in the old city limit too, we are generating an additional 300 tonnes. We are planning to use this garbage for power generation,” Mr. Mathuram said.

The city proposes to use ‘Pyrolysis’ technique – a new technology for decomposition of the garbage to produce gas that could be used to generate power.

The cost of the project has been estimated at around Rs. 40 crore.

The project has been planned for implementation through public-private partnership.

Builders upset

The Builders’ Association of India (BAI) has expressed disappointment over the Union Budget 2013, describing it as one that was not very encouraging to industrialists and the general public who are struggling to cope with high inflation for a long time.

Its former president and national trustee, V. Ramachandran, said that BAI and other construction associations were expecting relief in taxes, particularly in the housing and infrastructure sector.

Rental housing

It expected the Government to encourage rental housing, reduce the interest burden, increase incentives in interest and principal amount on the purchase of apartments, expedite the clearance from the Ministry of Environment and encourage the power sector.

However, they were not met with a suitable response from the Government, he said in a statement.

Bold initiatives

The Government should come out with bold initiatives such as quicker approval of projects, availability of finance at competitive rates, streamlining of the tax structure in order to ensure growth and development, he said.

No major power project has been considered despite several States being in darkness and small and large industries floundering, though Rs.800 crore has been allotted to set up non-conventional energy units.

 


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