Biomass power developers have initiated various steps to collect agro-residues from villages, its storage and proper transportation to biomass power plants said Dr. Farooq Abdullah, the Minister of New and Renewable Energy.
The Ministry of New and Renewable Energy (MNRE) is encouraging setting up of power generation projects from biomass through various technological routes such as combustion, gasification and cogeneration. MNRE has proposed to continue various fiscal and financial incentives such as capital subsidy linked with capacity and fiscal incentives such as concessional customs duty on import of machinery and components, excise duty exemption, accelerated depreciation on major components and relief from taxes which are being provided for setting up of biomass based power projects besides, preferential tariff is being provided for sale of power from biomass power projects during the Twelfth Five Year Plan period. Besides, MNRE is also supporting awareness raising through organizing business meets, seminars and workshops on promotion of biomass power.
A target of 29,800 MW grid interactive renewable power capacity addition, comprising 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro, 2,000 MW from biomass and 700 MW from urban and industrial waste and 900 MW off grid solar photovoltaic systems which includes 9 million solar lighting systems for rural and urban areas has been proposed for the Twelfth Five Year Plan period.