Bagasse Based Cogeneration Power Project

Overview -

Bagasse is a by product of sugar cane that is used as fuel in boilers to produce process steam. The consumption of Bagasse depends upon the pressure at which steam is produced in boiler. Co-generation projects with higher boiler pressure results in low computation of Bagasse, resulting in increased operating days. To achieve this, certain implant measures are required to be undertaken. Conventionally boilers of 40 bar pressure are in use.

Based on the studies carried out in many sugar factories, use of high pressure boilers (above 60 bars) makes such power projects highly profitable. National level potential of power generation through Bagasse co-generation as per MNRE, GoI study is about 3500 MW, whereas the potential in Telangana is 150 MW.

The Ministry of New & Renewable Energy (MNRE) GoI, has been supporting the Cogeneration power projects by giving back ended subsidy. The 50 % subsidy will be released for sugar factories developing Cogeneration power projects in cooperative sector / public sector /government under taking/ SPV company through BOOT model after issuance of purchase orders for larger equipments like boiler, turbine etc. The remaining 50 % subsidy could be availed after commissioning of the project and demonstrating its continuous operation for 90 days (3 months) from which 72 hours the plant should run with 80% PLF. For private sector one time subsidy will be released after commissioning of project after assessment of performance of the plant. The performance of the plant in both the above cases will be assessed through National Productivity Council (NPC) & then financial assistance will be released. In cogen plant where boiler modification is proposed financial assistance to certain extent will be given by MNRE, GoI. The details of the policy could be seen on www.mnre.gov.in

Further, to enhance attractiveness of investment in this sector the Ministry of Finance is extending exemption on excise duty & levying concessional custom duty over equipments and machinery purchased by the investors for developing a new cogeneration power projects.

Central Policy -

Ministry of New and Renewable Energy, New Delhi declared Central policy for Biomass Power and Bagasse Cogeneration.

Download MNRE Bagasse Cogeneration Policy dated 20-09-2016

For more information please visit the website of Ministry of New and Renewable Energy , New Delhi: www.mnre.gov.in for more details.