Cabinet endorses Biomass-based Power Project Implementation Policy-2011

The cabinet at its meeting chaired by Chief Minister Shivraj Singh Chouhan endorsed the Biomass-based Power Project Implementation Policy-2011 today.
As per the policy, one project can be registered in one development in view of possible availability of surplus biomass. Registration of investors will be made by Madhya Pradesh Energy Development Corporation. Power can be supplied to villages by completing the project within stipulated time.
In the policy of 2006 the distance between two projects was prescribed as 25 kilometres (radius). This has been changed and minimum distance has been removed. Under this provision, the number of biomass plants will increase and biomass will be utilised in a better way. Under the policy, investors of the state and from outside the state who are on the waiting list of registration can invest up to Rs. seven thousand crore. Due to this policy, pollution-free power will be available to villages and on the other hand farmers of the concerning districts will be able to earn profit by selling biomass (rice, soy chaff and stalks of cotton and mustard) to investors while so far they have been burning the same in their fields or dumping elsewhere.
It may be mentioned that as per a survey conducted by Government of India, there is possibility of generating 1250 MW power from biomass-based plants in Madhya Pradesh. At present, biomass-based plants of 32 MW capacity (captive) are established in the State and 45 MW capacity biomass plants are in the process of commissioning, which can be commissioned any time.

As per the new policy, the installed capacity on one project will be limited to 15 MW. If the availability of biomass is less than the plant’s requirements then it can use 15 percent traditional fuel for continuous running of the plant on the basis of heat rate announced to this effect. With a view to ensuring forest protection and checking misuse of wood, the actual distance of a proposed biomass-based plant will be minimum two kilometres for the nearest forest periphery. Registration of project will be on first come first serve basis and according to possible availability of biomass in every district. After completion of registration formalities, the promoter will have to deposit performance bank guarantee at the rate of one per cent of total cost of the project. Bank guarantee will be valid for three months. The certificate of keeping the plant two kilometres away from forest will be issued by the competent authority of the Forest Department.
The developer of the project will commission the project within 24 months from the date of government approval.