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IREDA

Biomass Power Generation

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Biomass Power

Technologies
Biomass - An Alternative Source of Energy

Biomass being a product of natural resources viz. land, water, air and sun’s energy, gives much hope as an alternative, reliable and renewable source of energy. Biomass is an organic matter produced by plants, both terrestrial and aquatic and their derivatives. Plant materials use the sun’s energy to convert atmospheric carbon-di-oxide to sugars during photosynthesis. On combustion of the Biomass, energy is released as the sugars are converted back to carbon-di-oxide. Thus energy is harnessed and released in a short time frame, making Biomass a renewable energy source. Though fossil fuels have also been derived from atmospheric carbon-di-oxide, the time frame is very long - in the order of millions of years as compared to a few years in case of Biomass. Currently, Biomass contributes 14% of the total energy supply worldwide and 38% of this energy is consumed in developing countries, predominantly in the rural and traditional sectors of the economy.

Biomass Potential

India is a tropical country blessed with sunshine and rains and thus offers an ideal environment for Biomass production. Further, the vast agricultural potential, also makes available huge agro-residues to meet the energy needs. With an estimated production of about 460 million tonnes of agricultural waste every year, Biomass is capable of supplementing the coal to the tune of about 260 million tonnes. This can result in a saving of about Rs. 250 billion, every year.

VARIOUS TYPES AGRO FIELD / INDUSTRIAL RESIDUES

Type of Agro residues Quantity(Million Tonnes / annum)
Straws of various pulses & cereals 225.50
Bagasse 31.00
Rice Husk 10.00
Groundnut Shell 11.10
Stalks 02.00
Various Oil Stalks 04.50
Others 65.90
Total 350.00

The estimated potentials of Biomass based renewable energy options in India are as follows

Biomass Energy 16,000 MW
Bagasse Co-Generation 3,500 MW
Total 19, 500 MW
Incentives available in the sector
FISCAL INCENTIVES AVAILABLE FOR BIOMASS POWER GENERATION
Item Description
Income Tax
1. Depreciation
100 % depreciation in the first year can be claimed for the following power generation equipment
1. Fluidized Bed Boilers
2. Back pressure, pass-out, controlled extraction, extraction and condensing turbine for Power generation with boilers
3. High efficiency boilers
4. Waste heat recovery equipment
2. Tax Holiday
10 year tax holiday
Customs Duty Duty leviable for NRSE power projects of less than 50 MW capacity (under Project Import Category) is 20 % ad valorum. This covers machinery and equipment components required for generation of electric power.
Central Excise Duty Exempted for renewable energy devices, including raw materials, components and assemblies.
Central Sales Tax -
General Sales Tax Exemption is available in certain States .
AN OVERVIEW OF STATE GOVERNMENT / UTILITY POLICIES AND INCENTIVES FOR BIOMASS BASED POWER GENERATION

Item Description
Power wheeling charges Nil – 20% of the Energy Exported.
Power Banking charges 2%
Power Banking Period Nil to 12 Months
Buy back Rate by SEB / State utility Rs 2.75/- to Rs 3.16/- per unit.
Third Party sale In some states allowed
Capital subsidy by State Govts
1. Some states participate as equity in the project
2. Some states provide capital subsidy of Rs 25 Lakhs / MW
PROCUREMENT

All the projects proposed to be funded by IREDA are requested to follow established commercials practices for procurement like RFQ, Tendering and Bid evaluation, etc., to the satisfaction of IREDA. The projects proposed to be funded by IREDA under International Lines of Credit are required to follow the following procurement procedures and also the procurement procedures set forth in the guidelines under the relevant International Line of Credit.

PROCUREMENT UNDER INTERNATIONAL LINES OF CREDIT

S. No. Type of Tender Estimated Value of Package
1. International Competitive Bidding (ICB) Above US$ 5,000,000
2. International Shopping Between US$ 5,000,000 and 200,000
3. Request for Quotations (at least three for evaluation) Between US$ 200,000 and US$ 50,000
4. Established Commercial Practice (ECP) Less than or equal to US$ 50,000 aggregating to US $ 200,000
List of officers Name in sector- Bio Energy
Sl. No. Name Designation Email Id Mobile No.

Last Updated on 18/02/2020
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