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outdated.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."