Cement, Energy & Environment

• The total installed cogeneration capacity has increased by 443 MW since March 2011. The key states for bagassebased cogeneration capacity are Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh. The technology used in cogeneration plants has improved over the years, with current plants using 110 bar steam pressure boilers. Though bagasse is still the fuel of choice, alternatives such as rice husk. can trash and cotton stalk wood are being increasingly used in the offseason (when sugarcane is not crushed). However, the industry has been grappling with several challenges including the weak financial position of many sugar mills, delayed payments from distribution companies, unavailability of land required for the expansion of older units, inadequate grid connectivity as well as high wheeling and open access charges in some states. However, continued support from the central government has ensured the viability of cogeneration projects. The MNRE provides capital subsidies of Rs 2 million -Rs 5 million per MW of surplus power sokj to the grid by sugar mills through their cogeneration plants. Further, the buildownoperatetransfer (BOOT) model introduced by the ministry in 2009 10 for independent power producers has also emerged as an effective model for cooperative/public sector sugar mills. wherein the project risk is borne by a better equipped developer, which can bring in project skills, eql¥f and fundraising capabilities. The BOOT model has been successfuUy adopted by Maharashtra, Tamil Nadu and Punjab. Biomass -based gasifiers Biomassbased gasifiers provide costeffective solutions for power generation, especially in rural areas, where grid connectivity is a major challenge. Estimates indicate that the cost of power from such projects is close to Rs 6Rs 7 per unit, which is cheaper than alternative renewable energy options and diesel based generation. Capacity addition in the biomass gasifier segment has been largely driven by MNRE's Biomass Gasifierbased Distributed/Offgrid Programme for Rural Areas and the Grid Power Programme, which were launched in 2003. Under these programmes. financial support is provided for the installation of gasifiers for offgrid plae in rural areas, captive power generation in rice mills and development of gridconnected plants with 100 per cent gas engine usage. As of August 2012, gasifiers aggregating 154 MW were installed under the scheme as compared to 132 MW till March 2011. The MNRE has also been promoting rice huskbased gasifier projects for decentralized and distributed power generation to cater to the power demand in villages. During 2011 , about 25 rice huskbased gasifier systems were installed across 70 remote villages and hamlets in Bihar. The installation of another 120 systems in the state is also under way. Moreover, the MNRE has also taken the initiative or retrofitting existing diese generators sets in rice mills across the country with rice husk gasifier systems. Biofuels The use of biofuels is being promoted under the National Policy on Biofuels (NPB), which was notified in December 2009. The policy seeks to promote biodiesel production from nonedible oil seeds in waste/degraded/marginal lands. The NPB has set an indicative target of 20 per cent blending of biofuels with petrol by 2017. Research is being conducted on the development and cultivation of improved varieties of jatropha for increasing biodiesel production. The funding for the same will be provided by the MNRE as well as the ministries of agriculture, and science and technology. 22