MNRE Starts Loan Scheme for Waste to Energy Biomethanation Projects

At a recent webinar organised on 'World Biofuels Day', the Ministry of New and Renewable Energy (MNRE), in association with the United Nations Industrial Development Organization (UNIDO) and the Global Environment Facility (GEF), launched a loan interest subvention scheme to provide financial assistance to innovative waste to energy biomethanation projects and business models.

Advertisment

A GIS based inventory tool of organic waste streams developed under the GEF-MNRE-UNIDO project was also launched during the webinar.

The industrial organic waste-to-energy biomethanation projects are generally capital intensive and financially sensitive to both operating costs, including waste availability, and revenue, particularly biogas yield and its utilization scenario.

Innovations in such projects seek to improve overall energy output thereby minimizing the cost of energy generation but may lead to increase in the initial project cost at the establishment stage yet increase revenue and reduce operating costs over project’s lifetime.

Advertisment

The loan scheme provides financial assistance to beneficiaries to reduce the financial burden on account of interest on the loan component faced by such demonstration projects.

The GIS tool provides district level estimates of available urban and industrial organic wastes and their energy generation potential across India. The tool will enable SME’s and project developers to set up new waste to energy projects and may facilitate the rapid growth of biomethanation in waste-to-energy sector in the country.

The webinar also showcased success stories of biomethanation projects in India and was followed by a panel discussion on "Innovations in Biomethanation Technology and Business Models – Key Potential Accelerator of Waste-to-Energy Sector Growth in India" and sharing of experience on technology, business models, policies and regulatory framework and project financing to foster SME’s contribution in the sector in India.

At the event, Dr René Van Berkel UNIDO Representative, Regional Office in India, gave the welcome address, and Mr Dinesh DayanandJagdale Joint Secretary, MNRE, gave the opening remarks and launched the Financial Support Scheme and the GIS tool for mapping organic waste availability, said the ministry.