Pioneering

GREEN INFRASTRUCTURE

InfraGreen 08
Hari Sankaran
MD, IL&FS

INDIA AT A CROSSROAD
• Infrastructure investment key to supporting
India’s 9% p.a. growth trajectory
• We have a choice between “Business as Usual”
vs. “Going Green”
• The benefits are evident
– Better health
– Cleaner environment
– Less Green House Gas Emissions
– Energy Efficiency
– Greater Energy Security

1
 GREEN INFRASTRUCTURE

TURNING BROWN TO GREEN

2
 Existing Scenario
• 42 Million tons MSW generated per annum in Indian cities
• Open dumping a common practice, no scientific closure of
landfills – public health menace, GHG emissions
• Negligible work on waste management including waste
minimization, its reuse & recycling

Composting

IL&FS has initiated the process of composting from MSW in Delhi, Punjab,
Rajasthan and Tamil Nadu.

3
 Waste to Energy

IL&FS is developing waste to energy projects from MSW in Delhi.

Scientific Management of Dumpsites

Creation of space for future
operation
– Shifting of Existing waste
– Capping
– Leachate and Methane Capture
– Landscaping

After Shifting and Capping

IL&FS is assisting MCGM (Mumbai) to close 3 existing dumpsites at Gorai, Mulund
and Deonar and reclaim 80 hectares of green landscaped space.

4
Green Benefits of Processing MSW
• Clean up the urban landscape

• Saving on precious land

• Provide organic compost to mitigate excessive

use of chemical fertilizer in the agricultural sector

• Mitigate GHG gas emissions

• Improved health and hygiene

The Opportunities
• Given the large number of infrastructure projects to
be built, we have a unique opportunity to build green
infrastructure
– An example is the Gujarat International Finance and Tech-City (GIFT)
that IL&FS is developing as a green city with energy efficient
buildings, green belts and green open spaces.

• Propel key sectors on a low-carbon growth plan

– An example is the energy sector

5
 GIFT: Green City
• Massive green areas across the city: 60-65% to
be under green cover
• Integrated Waste Management systems
• Promotion of public transportation for
reduction of harmful carbon emissions
• Innovative District Cooling system
• Using ecologically sound building materials

GIFT City

6
 GLOBAL CHALLENGES
Water and waste management
Urbanization
Building Green Cities
Public Transport

Energy contributes 80% of

GHG emissions. Energy
Security key to economic
Energy Security growth.
•Renewable Energy
•Energy Efficiency

Need for mitigation measures to reduce

impact of increasing GHG gases.
Climate Change Carbon credits to incentivize green
infra

Green Power Options

• Renewable Energy an answer to growing power needs of
Industry
– Hydro
– Wind
– Biomass
– Solar
– Geothermal
– Biofuel
• Energy Management
– Municipal systems
– Industrial systems
– Building systems
– Distribution loss reduction systems

7
 Green Power – Energy Saving
Investment Energy Energy
Market Type Potential Savings Savings
(Billion Rs) (MWH) (MW)
Industrial – Generic 42.0 23.7 mn 3,400
EE Measures
Industrial - Process 79.0 25.3 mn 3,600
EE Measures
Commercial 1.5 0.2 mn 56
Government 4.2 1.6 mn 500
Municipal 13.0 3.7 mn 1,688
Total 140.0 54.5 mn 9,244

INCENTIVIZING FIRMS
A key challenge is incentivizing firms
to self select green over grey or brown

– Voluntary Tracking through Green Accounting

– Government Policies and Regulations

– Creating a Sustainability Index for rating firms

– Introducing PPP models for profitable green infrastructure projects

that are sustainable

8
 Green Accounting - Why
• Growing pressures on the environment with
increasing environmental awareness
• Developing appropriate economic, trade and
sustainable development policies
• A recognized need to provide more accurate
information on progress towards sustainable
development at the national level and the corporate
level
• Green or Environmental accounting
- an effort to incorporate environmental benefits and costs into
economic decision making.

Government Initiatives
• JNNURM funding for Urban Infrastructure.
• Nutrient based subsidy regime to improve soil
productivity.
– Complement chemical with organic fertilizer
• Selective tax and pricing incentives for green power
– Wind Power (accelerated depreciation)
– Solar and Biomass Power (higher tariffs)
• Electricity Act 2003 furthers open access and ability
to supply to third parties encouraging PPPs in power
generation, transmission, distribution and
management

9
 Making it happen
• Regulation and Policies – providing incentives to firms to go
green

• Development of new financial instruments and global funding

sources - carbon finance

• Carbon finance to fund green investments

• New energy efficient technologies

• Using Public Private Partnerships

Thank you.

10