Weekly Report (15th March - 21st March)

1. Modes of financing for Waste to Energy Projects:

According to Planning commission report, 2011 “Lack of adequate financing of MSW sector has
led to the continuance of primitive systems of waste management in most of the cities in India
leading to public outcry on inadequate service delivery.”

The Finance Minister in his budget speech for 2013-14 has proposed to support municipalities that
will implement Waste to Energy projects through different instruments such as viability gap
funding, repayable grant, and low-cost capital.

It is a considered view that thrust should be given to “Integrated MSW” and the entire chain of
activities in MSW should be taken up in a well-synchronized manner and strategically supported.

To achieve the desired objectives. Adequate financial support may be given to the MSW sector in
general and processing and disposal facilities in particular (“PPP In MSWM”)

2. Existing Financial Support from Government of India ( Ref. Planning -

Commission report):

The GOI supports the SWM practices through various schemes as follows:

I. Support under JnNURM & UIDSSMT Schemes of Ministry of Urban Development

II. Grants under the thirteenth finance commission from MoF iii.NMRE grants for supporting
Waste to Energy projects iv.MNREGA and Nirmal Bharat Scheme Under MoRD
III. TAC-Tariff Advisory Committee
IV. Viability Gap Funding from Ministry of Finance
V. Support for Purchase of Compost from Ministry of Agriculture

Page | 1
3. Proposed Support for Capital Investments and O&M Costs:

 Under the scheme of “JnNURM,” all the cities and towns are eligible for Grants, under UIG
component or UIDSSMT schemes.
 Currently, only 65 cities in India are being supported by UIG grants. Hence government
should at least consider extending this grants to at least 468 class I cities which can cover
almost 70% of the urban population.
 The government can set up agencies to monitor the performance of such plants to support
their operational needs
 For the remaining 7467 small ULB’s left, the state government should step in to support
MSWM program by extending grants and rebates
 For the MNC with weak financial health the following cost sharing model is proposed:

A. Segregation, Collection, and Transportation

The capital costs for this can be shared as follows:
I. 35% grant from central government
II. 35% grant from the state government
III. 30% investment from the private sector.

B. Processing of Wastes

Centralized Plants

I. 40% viability gap funding for capital investment from the Government of India
II. 10% support from the State Government towards capital investment

Decentralized Plants
I. 40% from the Central Government towards capital investment
II. 20% from the State and ULB’s as a viability gap for capital investment.
III. 40% investments from the private sector
Page | 2
C. Support to existing defunct/partially functional processing plants

The municipal authority may consider inviting the private sector to operationalize defunct plants
earlier funded by Central or State grants/schemes. Funding support of Capital Subsidy may be
extended as under:

I. 50 % from the government of India

II. 20% state government
III. 30% investment by a private operator

D. Construction of Waste Plants

I. 30% grant from central government

II. 20% grant from the state government
III. 50% to be borne by the private sector

Viability Gap Funding Support

The private entity should be eligible for viability gap funding (VGF) support of up to 40% of the
project cost. The total VGF should be the bidding parameter and should be determined by
competitive bidding. The private entity, which seeks the lowest viability fund, will be selected to
execute the project. 20% of the viability gap fund can be provided from the VGF scheme of the
Ministry of Finance and the balance, up to 20% can be provided by Ministry of Urban
Development under JnNURM or other Central schemes

Page | 3
4. Status of Waste to Energy plants:

 In India
As per the Planning Commission’s report on MSWM, despite the project getting sanctioned,
many projects do not become operational. The following table shows the statistics for various
states.

Selected State-wise* Municipal Solid Waste (MSW)

Processing Facilities in India-2011

Palletization
Vermi- Bio- Waste
States/UTs Composting (RDF)
Composting methanation to Energy

Andaman and
1 - - - -
Nicobar Islands
Andhra Pradesh 24 - - 11 2
Assam 1 - - - -
Chandigarh - - - 1 -
Chhattisgarh 6 - - - -
Delhi 3 - - - 3
Goa 14 - - - -
Gujarat 3 93 - 6 -
Himachal Pradesh 10 - - - -
Jammu and Kashmir 1 - - - -
Jharkhand 4 - - - -
Kerala 21 7 10 1 1
Madhya Pradesh 7 - - 2 -
Maharashtra 6 2 5 5 2
Meghalaya 1 1 - - -
Nagaland 1 1 - - -
Odisha 1 - - - -
Punjab 1 3 - - -
Sikkim 1 - - - -
Tamil Nadu 162 24 - 3 -
Tripura 1 - - - -
West Bengal 13 7 - - -
India 279 138 172 29 8

Note: *: All other States and UT’s currently have no processing facilities.
Source: Lok Sabha Unstarred Question No. 3548, dated on 18.03.2015.

Table: State-wise distribution of W2E facilities in India

Page | 4
 Status of JnNURM Projects 2012
India

Project Project
S. No. States
Sanctioned Operational

1 Andhra Pradesh 2 0
2 Arunachal Pradesh 1 0
3 Assam 1 0
4 Bihar 2 0
5 Gujarat 5 4
6 Haryana 1 1
7 Himachal Pradesh 2 1
8 Jharkhand 3 0
9 Karnataka 1 1
10 Kerala 2 1
11 Madhya Pradesh 2 1
12 Maharashtra 4 3
13 Manipur 1 0
14 Puducherry 1 0
15 Punjab 1 0
16 Rajasthan 1 1
17 Tamil Nadu 4 3
18 Uttar Pradesh 7 1.5
19 Uttarakhand 3 0
20 West Bengal 2 1.5
Total 46 19

Page | 5
Some projects were studied as a part of the review to understand the reasons behind the failure.

W to E plant set up at Timarpur, Delhi in 1986, the RDF based power plants in Hyderabad and
Vijayawada and bio-methanation plant at Lucknow- all did not work as expected and eventually
were shut down. A number of wastes to energy technologies have been introduced over a period
of time at the initiative of the private sector, but most of the waste processing plants in India have
shut down or have not been operating as per their designed capacity

Failure of these plants have resulted in severe setback to the waste to energy projects in India and
have raised doubts on the suitability of Indian waste for waste to energy projects. Considering the
nonperformance of W to E plants, the Hon. Supreme Court of India has directed that MNRE, GOI
may support five pilot W to E projects for the time being. The MNRE should take concerted
measures to successfully demonstrate the pilot W to E projects at the earliest to enable private
sector investments.

 International Scenario

As per June 2013 Report of ‘ecoprog GmbH,’ there are 2,200 W to E plants in the world. They
have a disposal capacity of about 255 million tons of waste per year. By 2017, another 180 plants
with a capacity of 52 million tons will be added. Modern W to E technologies has been
commercially deployed, especially in Europe, Japan, Australia, China and the USA. In the US
there are 86 W to E Plants - about 12 % of waste is combusted for energy recovery – mostly ‘mass
burn.’ Some plants built from 2008-11 the world over is shown in the figure on the next page.

Best Plant in the World- AEB’s Amsterdam

AEB’s Amsterdam W to E project is considered as the most efficient plant in the world. Every
day, it collects total solid waste of around 4500 tons from 600 municipal trucks. The waste is used
to produce electricity with a total efficiency of 30.6% which is highest in the world. The plant also
has cogeneration where the excess heat generated is used to heat water for improving digester
efficiency. The ash which is a byproduct of the incinerator is converted into bricks. For every 1000

Page | 6
kg of solid waste collected, only 0.5 kg of waste is left untreated which is of no use. Thus it is
landfilled.

Page | 7
 References

1. Report of the Task Force on Waste to Energy, Planning Commission of India, retrieved from
http://planningcommission.nic.in/reports/genrep/rep_energyvol2.pdf

2. Municipal Solid Waste Management (MSWM), Indo-German Environment Partnership,

retrieved from http://www.igep.in/live/hrdpmp/hrdpmaster/igep/content/e48745/e5019
4/e58097/MSWMFactSheet2013-V1.pdf

3. http://indiainfrastructure.com/reportpdf/report_solidwaste_may2013.pdf

4. https://www.indiastat.com/environmentandpollution/11/solidwaste/261/stats.aspx

5. http://www.nswai.com/DataBank/pdf_mc/Gujarat_mc/City%20Report%20on%20Surat%20S
WM%20Project%20under%20JNNURM.pdf

6. https://www.indiastat.com/table/environmentandpollution/11/solidwaste/261/549684/data.as
px

7. https://www.indiastat.com/table/environmentandpollution/11/solidwaste/261/445797/data.as
px

8. STATUS REPORT ON MUNICIPAL SOLID WASTE MANAGEMENT, CPCB, retrieved

from http://www.cpcb.nic.in/divisionsofheadoffice/pcp/MSW_Report.pdf

Page | 8