ANNOUNCEMENT 11 May 2018
India has announced a scheme to provide assistance to biomass-based power generation projects.
NUMBER OF INTERVENTIONS
On 11 May 2018, the Indian Ministry of New and Renewable Energy notified the "Scheme to Support Promotion of Biomass-Based Cogeneration In Sugar Mills And Other Industries In The Country." The scheme will provide financial assistance for new and expansion projects for power generation through biomass. The scheme has a total budget of INR 1.7 billion (USD 25.22 million) and a target of 740 MW until 2020.
A Central Financial Assistance (CFA) of INR 2.5 million/MW (~USD 37,000/MW) will be provided for bagasse cogeneration projects and INR 5 million/MW (~USD 74,000/MW) for non-bagasse cogeneration projects. The assistance will be provided only for entities that have taken a term loan for the project and the grant will be released to the term loan account to reduce the loan component.
The Indian financial year is from 1 April to 31 March.
On 24 August 2020, the Ministry extended the scheme until 31 March 2021.