POWER

CO-GENERATION POWER PROJECTS FOR SUGAR MILLS

The Project : To set up power co-generation facilities for generating power from the surplus bagasse generated from sugar mills. The estimated investment in these projects is in the region of Rs. 430 million (USD 10.0 million) for a mill of capacity between 2500 tcd to Rs.1000 million( USD 20.0 million) for a mill of capacity greater than 5000 tcd.
Project Details : Bagasse generated from crushing of sugar, is an excellent raw material for power generation. The Ministry of Non Conventional Energy Sources (MNES) has issued guidelines to all states for fixation of purchase price for power produced from Non conventional energy sources. These guidelines are applicable to sugar mills also. These guidelines generally consisted of : 1. 2. 3. 4. 5. 6. Banking facility for one year at nominal charges. Wheeling facility of 2% of the energy fed in the grid. Permission for third party sale anywhere in the state. Power purchase rate @ Rs. 2.25 per unit(1994-95 base rate) escalated at 5%. Assurance of payment by the SEBs for power purchased. Cost of tie line to be borne by SEB.

MSEN has also provided other fiscal and financial incentives offered for non conventional energy sources in terms of accelerated depreciation, income tax holidays, customs duties, central excise duties, central sales tax etc.
Operating Agency Co generation Association of India. Address : C/O Maharashtra State Federation of Co-Op Sugar factories Ltd.(Sakhar Sangh) Sakhar Sankul, Ground Floor, Agricultural College Campus Shivaji Nagar, Pune - 411005 Tel : 091- 2055-5511404 Fax : 091- 2055-5511446 E mail : cogenindia@vsnl.net Contact person : Chief Executive Officer The project will be completed in a period of 3 years. The project is expected to earn revenues by sale of power to SEB. Development stage.

Gestation Period Revenue Generation Status of the Project

The possibilities of private investment in co-operative sugar mills power projects in Maharashtra are discussed below :

Item No. of Potential Sugar Mills for private investment Average Installed 2500 tcd 3500 tcd 40

Sugar Mills capacity 3500 tcd 5000 tcd 15

> 5000tcd 5

14-18

20-25
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Capacity(Mw) Average Exportable Surplus(Mw) Avg. days of operation on bio mass fuels/years(Nos) Capital Investment required(Rs. Million) Debt : Equity Ratio Payback period(Years) IRR On equity 9-13 240-250 15-20 270-300 28-40 300 above

430-585 70:30 7-8 18-20

650-875 70:30 6-7 20-22

850-1313 70:30 5-6 22-25

Private Sector Investment for co generation from bagasse can be encouraged through proper policy framework.

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BIOMASS BASED CO - GEN.

POWER PROJECTS
The Project Estimated Investment Implementing Agency 1. BIOMASS BASED CO-GEN POWER PROJECT Biomass based Co-gen Power Project Rs.4.00 Crores per MW MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA In any of the District Places like Gondia / Chandrapur / Gadchiroli / Bhandara Districts (with surplus amount of Biomass given in the Project Proposal) Two Years from the Financial Closure. Biomass power generation is CO2 neutral and thus environmentally benign, limiting green house effect. Low Capital investment, Low gestation and hence quicker pay back Ideal option for providing electricity to cluster of villages in Taluka, thus reducing T & D losses and improving voltage levels at remote areas. Rural employment generation Reduced drain on foreign exchange resources on account of import of fuel oil. High versatility of biomass, its amenability to storage and availability in almost all geographical locations make it reliable sources.

Location

Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project

IRR 18 to 20 % and DSCR 1.67 to 2.42 Project on BOO (Build, Own & Operate) basis with Rural employment generation Potential Strengthening of rural grid possible Generation of Power from Environmentally Benine source Interest subsidy from Ministry of Non-Conventional Energy Sources (MoNES), New Delhi, is available. Maharashtra Electricity Regulatory Commission (MERC) has declared tariff of Rs.3.05 per unit for Biomass based Power Projects on 15-07-2002. NOC from MSEB U/s.44 as per Electricity Supply Act, 1948. NOC from Pollution Control Board Environmental Clearance NOC from Local Grampanchayat / Nagar Palika etc. Legal Clearance for required project land Sanction from Irrigation Dept., / MIDC for supply of water Final Clearance from MEDA for the projects

List of clearances

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up to 10 MW and for above 10 MW Final Clearance from Energy Dept., GOM. All above clearances are required to be obtained by the Promoter. 12 to 15 Acres of land is required for the project.

Status of the required clearances Land Acquisition

2. BIOMASS BASED CO - GEN. POWER PROJECTS The Project Estimated Investment Implementing Agency Biomass based Co-gen Power Projects Rs.4.00 Crores per MW MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Nagpur Chawl, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA In any of the District Place like Akola / Amrawati / Bhandara / Jalna / Washim / Yavatmal etc. Districts (with surplus amount of Biomass given in the Project Proposal) Two Years from the Financial Closure. Biomass power generation is CO2 neutral and thus environmentally benign, limiting green house effect. Low Capital investment, Low gestation and hence quicker pay back Ideal option for providing electricity to cluster of villages in Taluka, thus reducing T & D losses and improving voltage levels at remote areas. Rural employment generation Reduced drain on foreign exchange resources on account of import of fuel oil. High versatility of biomass, its amenability to storage and availability in almost all geographical locations make it reliable sources.

Location

Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project

IRR 18 to 20 % and DSCR 1.67 to 2.42 Project on BOO (Build, Own & Operate) basis with Rural employment generation Potential Strengthening of rural grid possible Generation of Power from Environmentally Benine source Interest subsidy from Ministry of Non-Conventional Energy Sources (MoNES), New Delhi, is available. Maharashtra Electricity Regulatory Commission (MERC) has declared tariff of Rs.3.05 per unit for Biomass based Power Projects on 15-07-2002. NOC from MSEB U/s.44 as per Electricity Supply Act, 1948 NOC from Pollution Control Board Environmental Clearance NOC from Local Grampanchayat / Nagar Palika etc. Legal Clearance for required project land Sanction from Irrigation Dept., / MIDC for supply of water

List of clearances

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Final Clearance from MEDA for the projects up to 10 MW and for above 10 MW Final Clearance from Energy Dept., GOM.

Status of the required clearances Land Acquisition

All above clearances are required to be obtained by the Promoter. 12 to 15 Acres of land is required for the project.

3. MUNICIPAL SOLID WASTE BASED POWER PROJECTS The Project Estimated Investment Implementing Agency Municipal Solid Waste based Power Projects Rs.8 to 10 Crores per MW MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Nagpur Chawl, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA Nagpur Municipal Corporation, Nagpur Two Years from the Financial Closure. Environmental benefits No odor nuisance since entire process is in closed vessels. No nuisance of pets / birds these are normally attracted towards such dumping sites. Elimation of harmful / disease carrying organisms making it ecofriendly Reduced air and water pollution a clean and environment friendly means of waste disposal. Excellent quality of Organic Fertiliser is generated as by product. Generation of Green Electricity thereby reduced in release CO2 in atmosphere. Improvement of Socio-Economic condition The improvement in the social condition of the surrounding area is observed as a result of employment for unskilled labours for waste segregation. Reduction in quantity of Land for sanitary landfill in metro cities where land is big problem.

Location Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project

IRR 20 to 23 % and DSCR 2 to 2.5 Improvement on socio economic condition Reduced Air and Water Pollution Generation of Power from Environmentally Benine source Capital Subsidy and Interest Subsidy is available from Ministry of Non-Conventional Energy Sources (MNES) New Delhi, for the project. Letter of intent from Municipal Corporation for setting up Waste to Energy Project on BOO basis Municipal Waste supply Agreement and Land Lease Agreement to be signed with Municipal Corporation. Section 44 clearance under Electricity Act from MSEB for Power Generation Authorisation from Maharashtra Pollution Control Board (MPCB) for setting up plant.

List of clearances

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Environmental clearance from Environment Department No objection certificate from Airport Authority of India regarding Chimney height clearance. Final Clearance from MEDA for the projects up to 10 MW and for above 10 MW Final Clearance from Energy Dept., GOM. All above clearances are required to be obtained by the Promoter. 5 Hectors of land is required. Land is to be acquired from Municipal Corporation on Lease Rate of Rs.1 per Sq.mtr. per year.

Status of the required clearances Land Acquisition

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4. MUNICIPAL SOLID WASTE BASED POWER PROJECTS The Project Municipal Solid Waste based Power Projects Estimated Investment Rs.8 to 10 Crores per MW Implementing Agency MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Nagpur Chawl, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA Location Pune Municipal Corporation, Pune Time Frame for Completion of the Project Project Benefits Two Years from the Financial Closure. Environmental benefits No odor nuisance since entire process is in closed vessels. No nuisance of pets / birds these are normally attracted towards such dumping sites. Elimation of harmful / disease carrying organisms making it eco-friendly Reduced air and water pollution a clean and environment friendly means of waste disposal. Excellent quality of Organic Fertiliser is generated as by product. Generation of Green Electricity thereby reduced in release CO2 in atmosphere. Improvement of Socio-Economic condition The improvement in the social condition of the surrounding area is observed as a result of employment for unskilled labours for waste segregation. Reduction in quantity of Land for sanitary landfill in metro cities where land is big problem.

Revenue Model Salient Features of the Project

IRR 20 to 23 % and DSCR 2 to 2.5 Improvement on socio economic condition Reduced Air and Water Pollution Generation of Power from Environmentally Benine source Capital Subsidy and Interest Subsidy is available from Ministry of Non-Conventional Energy Sources (MNES) New Delhi, for the project. Letter of intent from Municipal Corporation for setting up Waste to Energy Project on BOO basis Municipal Waste supply Agreement and Land Lease Agreement to be signed with Municipal Corporation. Section 44 clearance under Electricity Act from MSEB for Power Generation Authorisation from Maharashtra Pollution Control Board (MPCB) for setting up plant.

List of clearances

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Environmental clearance from Environment Department No objection certificate from Airport Authority of India regarding Chimney height clearance. Final Clearance from MEDA for the projects up to 10 MW and for above 10 MW Final Clearance from Energy Dept., GOM.

Status of the required clearances Land Acquisition

All above clearances are required to be obtained by the Promoter. 5 Hectors of land is required. Land is to be acquired from Municipal Corporation on Lease Rate of Rs.1 per Sq.mtr. per year.

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SMALL HYDRO PROJECT
The Project Estimated Investment Implementing Agency Location 1. Small Hydro Project Rs.4 to 5 Crores per MW Irrigation Department, Government of Maharashtra THUGAN, Tal. Maval, Dist. Pune, At present MEDA is conducting DSI for all above site with financial assistance from MNES, New Delhi. Two Years from the Financial Closure. Reliable, mature and proven renewable energy sources Non polluting, entails no wastes or production of toxic gases, environmentally benign. Does not involve setting up of large dams or problems of deforestation, submergence or rehabilitation Can be exploiled wherever sufficient waster flows along small streams, medium to small river, irrigation dam-toe / canal drop sites etc. IRR % and DSCR List of clearances Interest subsidy from Ministry of Non-Conventional Energy Sources (MoNES), New Delhi, is available. Generation of Power from Environmentally Benine source.

Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project

Status of the required clearances Land Acquisition The Project Estimated Investment Implementing Agency

Clearance from Forest Dept., Environmental clearance from Environment Department Section 44 clearance under Electricity Act from MSEB for Power Generation Clearance from Irrigation Dept., Govt. of Maharashtra All above clearances are required to be obtained by the Promoter. Land is to be required from Irrigation Dept., Govt. of Maharashtra. 2. Small Hydro Project Rs.4 to 5 Crores per MW MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Nagpur Chawl, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA GANGAPUR, Tal. & Dist. Nashik At present MEDA is conducting DSI for all above site with financial assistance from MNES, New Delhi. Two Years from the Financial Closure. Reliable, mature and proven renewable energy sources Non polluting, entails no wastes or production of toxic gases, environmentally benign. Does not involve setting up of large dams or problems of deforestation, submergence or rehabilitation Can be exploited wherever sufficient waster flows along small streams, medium to small river, irrigation dam-toe / canal drop sites etc. Sale of power Interest subsidy from Ministry of Non-Conventional Energy Sources (MoNES), New Delhi, is available.
Maharashtra Infrastructure Summit 2002

Location

Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project

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List of clearances Generation of Power from Environmentally Benine source. Clearance from Forest Dept., Environmental clearance from Environment Department Section 44 clearance under Electricity Act from MSEB for Power Generation Clearance from Irrigation Dept., Govt. of Maharashtra

Status of the required clearances Land Acquisition The Project Estimated Investment Implementing Agency

All above clearances are required to be obtained by the Promoter. Land is to be required from Irrigation Dept., Govt. of Maharashtra. 3. Small Hydro Project Rs.4 to 5 Crores per MW MAHARASHTRA ENERGY DEVELOPMENT AGENCY S.No.191-A, MHADA Commercial Complex, Opp. Tridal Nagar, Nagpur Chawl, Yerawada, Pune 411 006. Tel. (020) 6683633/6683634 Fax : 6683631 E-mail : meda@vsnl.com Web-site : http://www.mahaurja.com Contact Person : Director General, MEDA THOSEGHAR, Tal. & Dist. Satara At present MEDA is conducting DSI for all above site with financial assistance from MNES, New Delhi. Two Years from the Financial Closure. Reliable, mature and proven renewable energy sources Non polluting, entails no wastes or production of toxic gases, environmentally benign. Does not involve setting up of large dams or problems of deforestation, submergence or rehabilitation Can be exploiled wherever sufficient waster flows along small streams, medium to small river, irrigation dam-toe / canal drop sites etc. IRR % and DSCR Interest subsidy from Ministry of Non-Conventional Energy Sources (MoNES), New Delhi, is available. Generation of Power from Environmentally Benine source. Clearance from Forest Dept., Environmental clearance from Environment Department Section 44 clearance under Electricity Act from MSEB for Power Generation Clearance from Irrigation Dept., Govt. of Maharashtra

Location

Time Frame for Completion of the Project Project Benefits

Revenue Model Salient Features of the Project List of clearances

Status of the required clearances Land Acquisition

All above clearances are required to be obtained by the Promoter. Land is to be required from Irrigation Dept., Govt. of Maharashtra.

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