According to reports, the Indian Biomass Power Association has requested the Power Ministry to help resolve some of the problems faced by developers to make their projects financially viable.
The association representatives met the Deputy Chairman of the Planning Commission, Dr Montek Singh Ahluwalia, and Mr P. Umashakar, Union Power Secretary, earlier this week to express their concerns about running biomass projects.
Most of the developers are facing difficulties due to the different regulatory environments in the States.
Mr P. Krishnakumar, President of the Association, and Mr D. Radhakrishna, Secretary-General, in a statement mentioned how biomass project developers are facing tough times due to various State agencies adopting different tariff structures. This is making them unviable in most States.
The officials were informed that while there is potential for about 18,000 MW, only 1050 MW has been commissioned so far and most of the plants are struggling to run optimally. If fact, some of them were on the verge of closure.
The banks are refusing to lend due to delays in securing payments from distribution companies of some States. The biomass sector has a direct bearing on people dependent in the sector, they said.