MNRE launches a loan interest subvention scheme for WtEbio-methanation projects

The Ministry of New and Renewable Energy has launched a loan interest subvention scheme in collaboration with the United Nations Industrial Development Organization and the Global Environment Facility to provide financial assistance for innovative waste-to-energy (WtE) based bio-methanation projects. The scheme has been launched for demonstration of such projects and business models. These projects are primarily capital intensive and financially sensitive to both operating costs (waste availability) and revenue (particularly biogas yield and its utilisation scenario).

A geographic information system-based inventory tool of organic waste streams has also been launched under the scheme. The tool provides district level estimates of available urban and industrial organic wastes and their energy generation potential across India. The tool will enable small and medium enterprises and project developers to set up new WtEprojects.

While innovations in such projects seek to improve overall energy output thereby minimising the cost of energy generation, it may lead to an increase in the initial project cost at the establishment stage. Yet, the innovations will ultimately increase revenue and reduce operating costs over a project’s lifetime.The loan scheme provides financial assistance to beneficiaries to reduce the financial burden on account of interest on the loan component faced by such demonstration projects.

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