MNRE Revises Waste-to-Energy Scheme Guidelines

The guidelines for the waste-to-energy schemes issued on 02.11.2020, 28.02.2020 and 30.07.2018 have been revised to introduce a performance-linked, inspection-driven Central Financial Assistance (CFA) disbursement mechanism. Almost 32 projects have already received CFAs under the Waste to Energy Programme since fiscal year 2018–19 (7 biogas, 16 Bio-CNG, and 9 power generation).

The revised changes provide for phase-wise disbursement of CFA, i.e., 50% of the sanctioned amount is released after the plant is commissioned and the developer obtains the ‘Consent to Operate (CTO)’ from the respective State Pollution Control Board. The remaining 50% is released after the plant demonstrates satisfactory performance, subject to detailed inspection and verification. However, to qualify for the second installment of the CFA, the plant must operate continuously at a minimum of 80% of rated capacity for 24 hours. Further, if Plant Load Factor (PLF) is below 50%, no CFA will be given and if performance is below the sanctioned output but above 50% PLF, CFA will be disbursed on a pro-rata basis aligned with the verified output. Moreover, the claim for CFA must be submitted within 18 months from the date of commissioning of the plant or from the date of in-principle approval of CFA, whichever is later. Claims made beyond this period will not be eligible for subsidy release.

The revised inspection protocol now requires Sardar Swaran Singh National Institute of Bio-Energy (SSS-NIBE) to conduct joint inspections with the Concerned State Nodal Agencies (SNAs), listed Biogas Development and Training Centers (BDTCs) (Annexure VIII), or any other MNRE-empaneled agency. Subject experts from government institutes may also be involved, especially for post-CFA monitoring. Two inspections are mandatory if the developer opts for advance CFA, i.e., prior to release of the first 50% (post-CTO) and prior to release of the final CFA (post-performance verification). However, if the developer does not opt for advance CFA, then only one inspection is required. The developer must request an inspection after successful commissioning within 18 months from the date of commissioning of the plant or from the date of in-principle approval of CFA, whichever is later. In case of delay, an application for extension must be filed before the expiry of the above-mentioned period.