MERC clears Orange City’s ‘Waste to Energy’ project

Source: The Hitavada      Date: 12 Feb 2018 10:21:00


Special Correspondent,

Power to be purchased at Rs 7 per unit

Scientific disbursement of the garbage will resolve the problem of dumping yard

Maharashtra Electricity Regulatory Commission (MERC) has cleared ‘waste to energy’ project of Nagpur Municipal Corporation (NMC). The MERC has fixed the power purchase rate of Rs 7 per unit for the project. This will pave way for the scientific disbursement of the garbage in the city. The MERC has given it a ‘Must Run Power plant.”

Presently, the entire adjoining locality of Bhandewadi Dumping yard is living in pathetic condition due to stinky smell coming out from the plant. The residents also filed a petition at National Green Tribunal (NGT) to remove the dumping yard from this vicinity. The local body has planned to rope a company for generation of energy from waste. The construction of the project likely to begin in 2018.

The city is generating an average of 1100-1200 tonnes per day waste with an average generation of 444 grams per capita per day. Civic body has selected a joint venture of M/s Essel Infraprojects Ltd. and M/s Hitachi Zosen India Pvt. Ltd for the project. These companies have formed a M/s Nagpur Solid Waste Processing and Management Pvt. Ltd. (NSWPMPL) as Special Purpose Vehicle (SPV) for execution of the solid waste processing plant at Nagpur.

The NSWPMPL had filed the petition at MERC for deciding the tariff of the project. The civic body will provide Rs 70 crore as viability gap funding (VGF) as support to the company.

The power purchase rate of Rs 7 will be applicable over a period of 13 years from the date of commercial operation of the project. The basic purpose of operation of the MSW based Waste to Energy Plants is to dispose and manage waste in scientific manner as envisaged under Solid Waste Management Rules, 2016. The Commission has finalised the tipping fee of Rs 225 per metric tonne. The income from tipping fees is Rs 6.57 crore. The commission has considered 4.5 per cent escalation cost per annum.

The local body will generate 11.5 MW electricity from Municipal Solid Waste. The company will establish a pre processing facility at Bhandewadi, Nagpur for a capacity of 800 MT per day.
The company has demanded tariff of Rs 7.80 per unit. It also demanded grant waiver on cross subsidy surcharge on sale of power from the project in case of sale of power directly to the third party. The treatment facility selected for the project would scientifically process and dispose the MSW. The NSWPMPL will ensure that not more than 20 percent of MSW received at the processing facility will be sent to a landfill.

The concessionaire should transfer the project facilities to NMC, free of cost at the end of the concession period. The concessionaire should provide project development fees of 1 percent of the total cost of the project. It has to prepare the Environment and Social Impact Assessment (ESIA) report and obtain Environment Impact Assessment approval from the competent authority. The proposed MSW project involves use of mass combustion/ incineration technology for Waste to Energy Conversion. Hitachi Zosen’s incineration technology provides the cleanest and most efficient capability for managing waste processing and creating sustainable green energy. It has more than 833 operating Waste to energy projects worldwide.