Have Revised Guidelines for Waste-to-Energy Projects Been Issued by the Centre?

New Delhi, June 28 (NationPress) The Centre announced on Saturday the release of newly revised guidelines for the waste-to-energy programme under the National Bioenergy Programme. This initiative seeks to cultivate a more efficient, transparent, and performance-driven ecosystem for the conversion of bio-waste into energy in India.

By streamlining processes, accelerating financial support, and aligning assistance with plant performance, the updated guidelines aim to significantly improve the business environment for both private and public sectors, as stated by the Ministry of New and Renewable Energy (MNRE).

The new framework simplifies numerous processes, such as reducing paperwork and relaxing approval protocols, which will enable the industry, particularly MSMEs, to boost their production of CBG, Biogas, and power.

These modifications effectively contribute to enhancing waste management, including stubble and industrial waste, while supporting India's broader objective of achieving net-zero emissions by 2070.

A significant feature of the revised guidelines is the enhanced system for disbursing Central Financial Assistance (CFA).

“Taking into account the challenges faced by developers in reaching 80 percent generation, flexible provisions have been incorporated into the scheme for CFA disbursement based on plant performance,” the ministry's statement noted.

Previously, companies were required to wait until the entire Waste-to-Energy project achieved 80 percent generation before receiving support.

Furthermore, the revised guidelines stipulate a provision for releasing the CFA in two stages. Based on the projects' performance, 50 percent of the total CFA will be released upon obtaining the consent to operate certificate from the State Pollution Control Board, against a bank guarantee, while the remaining CFA will be issued after reaching 80 percent of either the rated capacity or the maximum CFA eligible capacity, whichever is lower.

“Notably, even if a plant fails to reach 80 percent generation for either of the above conditions during performance inspection, provisions exist for pro-rata based disbursement according to the percentage output. However, no CFA will be granted if the Plant Load Factor (PLF) is below 50 percent,” according to the government.

This modification recognizes real-world challenges and aids developers by providing financial flexibility and viability during operations.

The revised guidelines grant project developers the option to claim CFA either within 18 months from the commissioning date or from the date of in-principle CFA approval, whichever comes later.