Central Financial Assistance (CFA) for MSW based Projects:

Financial Assistance (FA) to be provided for projects based on different technologies and wastes will be as given below:

Commercial Projects based on Municipal Solid Waste in fast track mode:

Projects for power generation from MSW through a two-stage process involving production of RDF by processing of MSW and it's combustion for generation of power is proposed to be taken up in a fast track mode. The strategy includes development of projects for specific cities and inviting bids from project developers and entrepreneurs for setting up these projects on public private partnership basis. The developers will be selected on the basis of a bid for minimum amount of financial assistance (or 'viability gap' funding) within an overall ceiling of Rs 1.50 crore per MW. Thus, the financial assistance to be provided for each project will be provided for each project will be determined through a process of competitive bidding after a Detailed Project Report (DPR). State Nodal Agencies, Municipal Corporations or other professional organizations such as IL&FS, IREDA, HUDCO, TCOs etc, will carry out the project development and bidding through a transparent tendering process.

Projects based on high rate biomethanation technology:

Financial assistance of Rs.2.0 crore/MW will be provided for projects based on power generation from MSW through high rate biomethanation technology.

Demonstration Projects for Power generation from MSW through new technologies

With the objective of developing indigenous capabilities as well as for demonstration of various new and emerging technologies, financial assistance will be provided to the extent of 50% of the project cost, subject to a maximum of Rs. 3.0 crore / MW for setting up demonstration projects based on gasification/pyrolysis and plasma are technologies.

Power generation at sewage treatment plants:

Financial assistance @ 40% of the project cost subject to a maximum of Rs.2.0 crore/MW shall be provided for projects for generation of power from biogas being produced at Sewage Treatment Plants. Project cost will include the cost of Engine-Genset, H2S removal plant and other related equipment.

Power generation from other urban Wastes:

Financial assistance @ 50% of project cost subject to upper limit of Rs.3.0 crore/MW shall be provided for setting up projects based on biomethanation technology for power generation from cattle dung, Vegetable market and slaughterhouse Wastes generated in the urban areas. For cattle dung based projects, eligible project capacity would be 250 KW and above. In case of projects for generation of only biogas for thermal application, the FA will be limited to Rs. 1.0 crore/Mweg (i.e. biogas production of 12000 cu.m/day).

Central Financial Assistance to Energy/Power Generation from Industrial and commercial Wastes and effluents.

Other incentives from GOI

Financial assistance of 50% of the cost of Preparation of DPR to a maximum of Rs.1.00 lakhs/ per project will be reimbursed to the promoters at the time of sanction of project.