The Department of Power, Nagaland has signed a 25-year power purchase agreement (PPA) with Hutah Industries, a producer of biomass, to purchase power from its 10 MW bamboo biomass facility. The project will be located at AK industrial village in Dimapur, Nagaland and will be developed on the basis of build, own, operate model. The company will implement the project in engineering, procurement, and construction mode at a tariff of Rs 5.06 per kWh.
The project will be set up on 1,500 acres of land, which has been acquired on long-term lease for a period of 25 year. The project is expected to be commissioned within 24 months of the signing of PPA. The government of Nagaland will implement the evacuation line from the facility to the Ganesh Anagar 33 kV substation. Furthermore, the project involves management of logistics and inventory, connected with drone-based monitoring system for optimisation of bamboo estate in hilly terrain.
In August 2023, the Ministry of Power notified the co-firing of biomass pellets made from agricultural residues and coal in 47 thermal power plants. The notification intended to update the biomass policy dated August 10, 2021. The revisions required 5 per cent biomass co-firing in thermal power plants.