India Encouraging Power Generation Projects from Biomass

Biomass power developers have initiated various steps to collect agro-residues from villages, its storage and proper transportation to biomass power plants said Dr. Farooq Abdullah, the Minister of New and Renewable Energy.

The Ministry of New and Renewable Energy (MNRE) is encouraging setting up of power generation projects from biomass through various technological routes such as combustion, gasification and cogeneration. MNRE has proposed to continue various fiscal and financial incentives such as capital subsidy linked with capacity and fiscal incentives such as concessional customs duty on import of machinery and components, excise duty exemption, accelerated depreciation on major components and relief from taxes which are being provided for setting up of biomass based power projects besides, preferential tariff is being provided for sale of power from biomass power projects during the Twelfth Five Year Plan period.

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1 Response

  1. raj says:

    If u are serious and i believe u are reduce taxation at the gassifier and plants of 1 MW as that is the size of biomass plants. giving subsidy incentices directly in to the banks of Biomass power producers is no answer to the problem . reduce the capital cost of the plant to make them viable . may refer to American literature on rural electrification how they made rural electrification competitive vis a vis urban distribution. If there are some patents with the Govt open it and let people use it rather be guided by scroungy and petty bureaucrats that development cost be recovered in releasing case by case . open up the knowledge sources so that people can work the ideas . After all development has been done with public money. social benefits are mush more than petty amounts which some govt bodies like CSIR collect

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