MINISTER OF STATE FOR NON-CONVENTIONAL ENERGY SOURCES (INDEPENDENT CHARGE), (SHRI M. KANNAPPAN)
(a): A total surplus power capacity of 213 MW has been installed through 35 bagasse based co-generation projects in six States. A further surplus power capacity of 263 MW is under implementation.
(b)&(c): The average cost of power generated from bagasse based co-generation projects varies from Rs.1.50 to Rs.2.75 per unit, depending upon various technical, financial and operating parameters. The cost of power from bagasse based co-generation projects compares favourably with the cost of power generated from hydro-electric and thermal power projects.
(d): The power generated from bagasse based co-generation is used in the sugar mills for captive consumption and the surplus power is fed to the grid.
(e)&(f): The Ministry of Non-Conventional Energy Sources is implementing a National Programme for promotion of optimum surplus power generation from bagasse in sugar mills. The Programme provides for central financial assistance by way of capital subsidy
or interest subsidy for various types of projects in cooperative, public and private sector sugar mills.
The Central and State Governments provide fiscal and financial incentives, including relief from taxes and duties, accelerated depreciation, etc. Eight potential States have announced promotional policies for wheeling, banking, third party sale and buy-back of power generated from these projects. Soft loans are provided by the Indian Renewable Energy Development Agency (IREDA) for commercial projects. Financial assistance is also provided for preparation of detailed project reports, business/interaction meets and training programmes.