The Capital Subsidy for Urban Waste based Power Projects will be considered subject to the following:

The main objectives of the Programme on Energy Recovery from urban wastes are as follows:

• To promote setting up of biomethanation based projects for recovery of energy from other urban wastes such as sewage gas, cattle dung, vegetable market, slaughterhouse wastes and agricultural wastes / residues
• To create conducive environment, with fiscal and financial regime, to develop, demonstrate and disseminate utilization of urban wastes for recovery of energy

Details of Financial Assistance

Financial support to be provided under this Programme is as follows: -

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 /MWeq (i.e. biogas production of 12000 cu.m /day.) .

Power generation from other urban wastes and agricultural wastes/residues

Financial Assistance @30% 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 a mix of cattle dung, vegetable market and slaughterhouse wastes along with agricultural wastes/residues. These projects can also be based on wastes obtained from periurban or rural areas and the plants can be located wherever the wastes are available. The provision for addition of agricultural residues will be reviewed after sanction of projects with a total capacity of 20 MW or end of the plant period, whichever is earlier.

Financial assistance under this scheme will be limited to an upper limit of Rs. 6.00 crore per project.