Representational Image. Credit: https://commons.wikimedia.org/w/index.php?curid=168816
The Indian Biogas Association (IBA) has urged the Ministry of New & Renewable Energy (MNRE) to double the Central Financial Assistance (CFA) under the Waste to Energy Scheme. The IBA wants it to be increased to Rs 950 crore, according to a statement issued by the IBA.
According to a notification issued by the MNRE on February 28, 2020, approximately Rs 478 crore for 257 MWeq was allocated under the CFA grants in 2019-20.
This Rs 478 crore allocation is far less than the CFA/subsidy required to meet the SATAT (Sustainable Alternative Towards Affordable Transportation) initiative’s target of 5,000 large-scale Bio-CNG/CBG plants, according to the statement.
Given that each plant produces an average of 5 tonnes of bio-CNG per day, it would necessitate a subsidy of around Rs 20,000 crore over a five-year period, it explained.
It was noted that the CFA amount needed to be revised upward due to the inflation effect. According to the statement, the IBA is confident that the scheme will receive funding soon and that subsidy revival will occur. The IBA has also suggested that the funds be released on a pro-rata basis by the government.