MoUs for setting up of Biogas based power plants at Gaushalas in Haryana

18.11.2009

The MoUs for setting up of Biogas based power plants at five Gaushalas in Haryana were signed in the presence of Union Minister of New & Renewable Energy, Dr. Farooq Abdullah and Minister of State (Independent Charge) for Environment and Forests, Shri Jairam Ramesh in New Delhi today.

The projects proposed to be set up at five selected Gaushalas for power generation from biogas to be produced from a mixture of cattle dung and agricultural residues / crop wastes are going to be based on the state-of-the-art technology. Since the Gaushalas only have the land and access to raw material and not the technology or finances, a project developer who is implementing similar projects of larger capacities in the State of Punjab, has been identified. The Developer M/s Sri Krishna Captive Energy Ltd. will implement these projects on BOOT basis in partnership with the Gaushalas. The Developer will fund the projects, execute and operate them for about 10 years and hand them over to the Gaushalas thereafter.

The projects are supported by the Animal Welfare Board of India (AWBI) under the Programme on Energy from Urban and Agricultural Wastes being implemented by the Ministry of New and Renewable Energy.

The development of projects at the Gaushalas has at its roots in the success of the first project for generation of 1 MW power from cattle dung installed at Ludhiana in the year 2004-05 under a UNDP / GEF assisted project implemented by MNRE. With a view to promote power projects based on cattle dung, a Field Visit-cum-Seminar was organized at the Project installed at Ludhiana in August, 2008, which was also attended by senior members of the AWBI. Secretary, MNRE had called upon the Gaushalas to set up such projects. MNRE and AWBI have been working on setting up of a few commercial projects on ‘build own operate and transfer’ (BOOT) basis at Gaushalas. This included MNRE’s participation in the Annual General Meeting of AWBI and meetings in the Ministry with the chairman of AWBI and representatives of some of the selected Gaushalas.

Each project of 350 KW is expected to cost around Rs.4 – 4.5 crore and would be eligible for a Central Financial Assistance (CFA) of upto Rs.1.05 crore (@Rs. 3.00 crore/MW) under the Programme on Energy Recovery from Urban Wastes, which also includes the component of biogas based power from cattle dung and agricultural residues. Proposal for sanction of subsidy will be considered in accordance with the provisions of Ministry’s programme as and when received. Further, even after sanction, while the first installment of CFA is to be given upon commencement of project execution and disbursement of 50% of loan sanctioned for the projects, the 2nd installment will be released after successful commissioning of the project.

The MoU essentially includes conditions for co-operation between the Gaushalas and the Developers. After signing of MOU, the project development activities including preparation of DPR, signing of PPA and financial closures would commence and it is expected that project execution would begin before the end of the year 2009 for projects to be completed in 6 to 9 months.

These projects are based on a concept that has already become popular in several European countries. The Developer M/s Sri Krishna Captive Energy Pvt. Ltd. is working in collaboration with a German technology company namely M/s. Envitech.

It is expected that these projects will lead to setting up of a large number of such projects for energy recovery from cattle dung and agricultural residues for decentralized power generation through an environmentally benign technology.

PRA/SKK