Question : Biomass Based Power Generation

(a) the total installed capacity of biomass based power generation in the country, State-wise;
(b) whether the Government provides any incentives to firms producing or using biomass-based power;
(c) if so, the details thereof; and
(d) the steps being taken by the Government to increase the capacity of biomass based power generation in the country?

Answer given by the minister

THE MINISTER OF STATE FOR POWER, COAL, NEW AND RENEWABLE ENERGY & MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a): As per the information obtained from the concerned State Nodal Agencies (SNAs), the installed capacity of Biomass power and Bagasse Cogeneration plants in the country, till date, is given at Annexure– I.
(b) to (d): The Ministry of New & Renewable Energy (MNRE) is implementing two schemes, namely “Promotion of Grid Interactive Biomass Power and Bagasse Cogeneration in Sugar Mills” and Programme on Energy from Urban, Industrial and Agricultural Wastes/Residues during the 12th Plan period.
Besides the Central Financial Assistance (CFA), fiscal incentives such as concessional import duty, excise duty, tax holiday for 10 years etc., are available for Biomass power projects. The benefit of concessional custom duty and excise duty exemption are available on equipments required for initial setting up of biomass projects based on certification by MNRE. In addition, the State Electricity Regulatory Commissions have determined preferential tariffs and Renewable Purchase Standards (RPS). The Indian Renewable Energy Development Agency (IREDA) provides loan for setting up of biomass power and bagasse cogeneration projects.
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