Biomass Power

In: Business and Management

Submitted By windyhorse51
Words 2658
Pages 11

17th December, 2009

GIIB, Visakhapatnam

The total installed capacity in India is 1,50,000MW but we are facing a power deficit of around 10%. The per capita power consumption is 665 kWh and this figure is steadily increasing. To meet this increasing demand and reduce the current peak shortage, the Government has planned to double the existing capacity to 3,00,000MW over the next decade (2010-20).

BIOMASS POWER SCENARIO India has a biomass availability of 150 million MT per annum which gives us a potential to install 16,000MW of biomass based power plants. But only 600MW is installed and another 600MW is under implementation. To realise this huge potential we need an investment of Rs.1,00,000 crore. Some reasons for lack of investments in Biomass sector are:   It costs around Rs.6cr/MW for a Biomass plant whereas a thermal plant requires only about Rs.4.5cr/MW. Availability of Biomass fuel with high calorific value (> 4000kcal/kg)

PROMOTIONAL INCENTIVES       Accelerated Depreciation 80% in first year (Boiler and Turbine). Income Tax Holiday under Section 80 1A for 10 years. Concessional import duty; excise duty exemptions on equipments & components required for initial setting of the project. Sales tax exemption in some states. IREDA provides loans for biomass power projects. Preferential Tariff in 14 States.

INVESTMENTS   India and Germany have signed a Rs.140 crore deal to install 7 Biomass projects in India. During the 11th Plan period, the Government of India aims to add 500MW capacity through biomass in many states, including Maharashtra, Uttar Pradesh, Tamil Nadu and Karnataka.  AllGreen, a leading renewable energy developer in India, plans to raise US$100…...

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