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In
the area of small scale biomass gasification, significant
technology
development work has made India
a world leader. Biomass gasifiers capable of producing
power from a few
KW upto 1 MW capacity have been successfully developed indigenously.
A
large number of installations for providing power to small scale
industries and for electrification of a village or group of villages
have been undertaken.
The
Biomass Gasifier Programme has been recasted to bring about better quality
and cost effectiveness.
The
programmes on biomass briquetting and biomass production are being
reviewed and a new programme on power production linked to energy
plantations on wastelands is proposed to be developed.
Installation:
A
total capacity of 55.105 MW has so far been installed, mainly for stand-alone applications.
A
5 x 100 KW biomass gasifier installation on Gosaba Island in Sunderbans area of
West Bengal is being successfully run on a commercial
basis to provide electricity
to the inhabitants of the Island through a local grid.
A
500 KW grid interactive biomass gasifier, linked to an energy plantation, has been
commissioned under a demonstration project.
A
4X250 kW (1.00 MW) Biomass Gasifier based project has
recently been commissioned at Khtrichera, Tripura for village
electrification.
Pattern of Financial
Assistance/Incentives for Setting up of Biomass Power/Cogeneration Projects
Interest Subsidy
for Bagasse/Biomass Cogeneration Projects (Commercial Projects)
|
Bagasse Co-generation (Commercial Projects) |
| |
Schemes
|
Pressure Configuration
|
Interest Subsidy
|
|
1. |
Projects
by Cooperative/Public/ Joint Sector Sugar Mills
|
40
bar & above |
3% |
|
60
bar & above |
4% |
|
80
bar & above |
5% |
|
2. |
Projects
in IPP Mode in Cooperative/Public Sector Sugar Mills |
60
bar & above |
2% |
|
80
bar & above |
3% |
|
3. |
Projects
by Private Sector Sugar Mills |
60
bar & above |
2% |
|
80
bar & above |
3% |
|
Biomass Co-generation |
|
4. |
Commercial
Projects |
60
bar & above |
2% |
|
80
bar & above |
3% |
|
For
Bio-gases Cogeneration by Cooperative/Public Sector Sugar mills, the floor
rates of interest shall not be lower than 8%, otherwise 10% for general
category of projects |
Interest Subsidy
for Biomass Power Projects (Commercial Projects)
|
Biomass Power |
|
|
Schemes |
Pressure Configuration |
Interest Subsidy |
|
1. |
Commercial
Projects (Direct Combustion, including captive power)
|
60
bar & above |
2% |
|
80
bar & above |
3% |
|
2. |
Commercial
Projects (Atmospheric Gasification including captive power)
|
-- |
2% |
|
3. |
MW-Scale
projects with 100% Producer Gas Engines |
Capital
Subsidy of Rs.1.00 Cr./MW |
|
4. |
Advanced
Biomass Gasification |
Capital
Subsidy of Rs.1.00 Cr./MW |
Biomass Power projects in
North-Eastern States & Sikkim, additional interest subsidy @2%
will be provided subject to floor rates of interest shall not
lower than 8%, otherwise 10% for general category of projects
Biomass
Power/Cogeneration
|
FISCAL INCENTIVES FOR BIOMASS POWER GENERATION |
|
Item |
Description |
|
Accelerated
Depreciation
|
80% depreciation in the first
year can be claimed for the following equipment required
for co-generation systems:
-
Back pressure,
pass-out, controlled extraction, extraction–cum-condensing
turbine for co-generation with pressure boilers
-
Vapor absorption
refrigeration systems
-
Organic ranking
cycle power systems
-
Low inlet
pressures small steam turbines
|
|
Income Tax
Holiday |
Five year
tax holiday with 30% exemption in the next 5 years for power
generation projects with PPAs |
|
Customs Duty
|
Duty livable
for NRSE power projects of less than 50 MW capacity (under
Project Import Category) is 20% ad valorum. |
|
General
Sales Tax |
Exemp
|
|