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Implementation of Waste to Energy plant in Indore (Madhya Pradesh)

Technical Report · March 2018

DOI: 10.13140/RG.2.2.26103.73121

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 TERM PAPER- INFRASTRUCTURE
POLICY AND REGULATION

WASTE TO ENERGY
(SOLID WASTE
MANAGEMENT)
IN INDORE CITY

SUBMITTED BY:
KSHITIJ JAISWAL
A13582616001
MBA IM- 4TH SEMESTER

Table of Contents
LIST OF FIGURES ........................................................................................................................... 3
LIST OF TABLES .............................................................................................................................. 3
1. PROJECT IDENTIFICATION: INDORE ..................................................................................... 4
1.1 HOW INDORE BECAME NUMBER ONE IN SWACCH SURVEKSHAN SURVEY IN 2017 ........................ 4
2. WHY CHOOSE WASTE TO ENERGY? ..................................................................................... 5
2.1 CURRENT STATE OF SOLID WASTE MANAGEMENT IN INDIA ........................................................... 5
2.2 POTENTIAL FOR ENERGY GENERATION FROM MSW AND FOSSIL FUEL DISPLACEMENT ................. 5
2.3 THE TECHNOLOGY/PROCESS ............................................................................................................ 6
3. STATUS OF W2E PROJECTS IN THE COUNTRY ...................................................................... 7
4. ISSUES IN WASTE TO ENERGY IMPLEMENTATION .............................................................. 8
5. RULES AND POLICIES IN SOLID WASTE MANEGEMENT ....................................................... 9
5.1 STAKEHOLDERS AND THE ROLE OF AGENCIES............................................................................... 10
5.2 GOVERNMENT SCHEMES & INCENTIVES ....................................................................................... 10
5.2.1 FOR INDUSTRIAL WASTE TO ENERGY PROJECTS: .................................................................... 10
5.2.2 FOR URBAN WASTE TO ENERGY PROJECTS ............................................................................. 11
6. IMPLEMENTATION METHOD IN INDORE, MADHYA PRADESH (STUDY AREA) .................. 12
7. RECOMMENDATIONS ......................................................................................................... 15
ANNEXURE: EXISTING PRIVATE PLAYERS IN WASTE TO ENERGY SECTOR ................................. 16
Bibliography ................................................................................................................................ 16

2
LIST OF FIGURES
Figure 1: Question in Swacch Bharat Survekshan regarding Waste to Energy ........................ 4
Figure 2: Process Flow Diagram ............................................................................................... 6
Figure 3: Operational Model Framework in Andhra Pradesh ................................................ 13
Figure 4: Cluster Based ISWM in Indore ................................................................................. 14

LIST OF TABLES
Table 1:POTENTIAL FOR ENERGY GENERATION FROM MSW & FOSSIL FUEL DISPLACEMENT 5
Table 2: STATEWISE POTENTIAL OF ENERGY GENERATION ..................................................... 6
Table 3: Status of Pilot Projects taken by MNRE ...................................................................... 7
Table 4: Details of Operational and non operational Plants .................................................... 8
Table 5: General Tariff of W2E plants, FY 2015-16 ................................................................... 9
Table 6: Carbon Credit Benefits from MSW to Energy ........................................................... 12
Table 7: Status of Waste in MP .............................................................................................. 12
Table 8: Clusters in the state of Madhya Pradesh .................................................................. 14

3
 1. PROJECT IDENTIFICATION: INDORE
The reason for which Indore city has been chosen is because it was ranked number one city in
Swacch Bharat Survekshan 2017. How is the city managing its waste and how much percentage
of it is being reused in recycling or converting the trash into useful resource is of significant
importance since low ranking cities would probably be looking up on top cities to follow them
and achieve same standards.

1.1 HOW INDORE BECAME NUMBER ONE IN SWACCH SURVEKSHAN SURVEY IN 2017

The reason for Indore to come from 149th position in 2014 to 25th position in 2016 and then
to 1st position in 2017 is mainly because of following points:
1. Municipality’s efforts in improving the garbage collection
2. Turning the city open defecation free; and
3. Successful awareness for cleanliness among citizens.

The parameters for survey were categorized into 3 categories of data:

1. Service level progress, interactions with Municipal Body (35%)
2. Direct observation (30%)
3. Citizen feedback (1000 citizens or 0.1 % of population whichever is low) (35%)

In the citizen feedback, there was a question regarding waste treatment (waste to energy or
composting) as in how much percentage of waste is gong to landfill, if that percentage is below
20%, then 45 points were added. These are significant weightage of points for any city to work
towards the cause.

Figure 1: Question in Swacch Bharat Survekshan regarding Waste to Energy

SOURCE: (MoUD, 2017)

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 2. WHY CHOOSE WASTE TO ENERGY?

2.1 CURRENT STATE OF SOLID WASTE MANAGEMENT IN INDIA

Often, the waste generated by us is disposed to land and water bodies without proper treatment.
The statistics show that 62 million tonnes of MSW generated annually in urban areas, out of
which more than 80% is disposed of indiscriminately at dump yards in an unhygienic manner.
So there is a potential of generating 500 MW of power from these waste. Additionally, 1.3
million cubic metre of biogas can be made per day or 72 MW of electricity can be generated
from these biogas and 5.4 million metric tonnes of compost.

More importantly, if we continue doing business as usual, then 62 million tonnes annual
generation of MSW will need 3, 40,000 cubic meter of landfill space everyday (1240 hectare
per year), if the waste is continued to be dumped like this.

As per CPCB data 2016 municipal authorities have so far only set up
• 279 compost plants,
• 172 biomethanation plants,
• 29 RDF plants and
• 7 Waste to Energy (W to E) plants in the country

2.2 POTENTIAL FOR ENERGY GENERATION FROM MSW AND FOSSIL FUEL
DISPLACEMENT

Another significant reason for setting up more waste to energy plants is that it has potential to
replace energy sources coming from conventional fossil fuels thereby reducing the
environmental damage. Following tables show the potential of generating electricity from
equivalent Waste to energy plants.

Table 1:POTENTIAL FOR ENERGY GENERATION FROM MSW & FOSSIL FUEL DISPLACEMENT

Source: (Aswani, 2016)

5
Table 2: STATEWISE POTENTIAL OF ENERGY GENERATION

Source: (Standing Committee on Energy, 16th Lok Sabha, 2016)

2.3 THE TECHNOLOGY/PROCESS

The technology of converting waste to energy is very simple and the process is snvironment
friendly. There is basically 4 technological process associated with waste to energy:

1. Anaerobic Digestion/Biomethanation;
2. Combustion/Incineration;
3. Pyrolysis/Gasification;
4. Landfill Gas recovery

The process is depicted in the flow diagram as shown below:

Figure 2: Process Flow Diagram

Source: (Ministry of New and Renewable Energy )

6
 3. STATUS OF W2E PROJECTS IN THE COUNTRY
The Ministry of New and Renewable Energy (MNRE) has taken up 5 pilot projects with an
average capacity of 57 MW. The status of 5 Pilot Projects undertaken by MNRE under its
progromme on “Energy Recovery from Urban, Industrial and Agricultural Waste Residue “ is
as follows:

Table 3: Status of Pilot Projects taken by MNRE

Source: (Standing Committee on Energy, 16th Lok Sabha, 2016)

As per Ministry of urban Development, following is the status of W2E plants in the country:

• 31 Under Construction Plants (Total 242 MW capacity)

• 21 W2E Plants under tendering process. (Total Capacity: 163 MW)
• 7 Operational Plants (92 MW capacity)
• 4 Non Operational Plants (40 MW capacity)

The details of operational and non operational plants is depicted in the following table which
was given by 16th Lok sabha:

7
Table 4: Details of Operational and non operational Plants

Source: (Standing Committee on Energy, 16th Lok Sabha, 2016)

4. ISSUES IN WASTE TO ENERGY IMPLEMENTATION

Following are the issues that have been identified when it comes to setting up and running
waste to energy plant in the country:

1. On the supply side, the irregular and inadequate quantity of waste can impact the
amount of electricity that can be produced.
2. Pollution associated with incineration can cause problems. Locals are often seen
complaining about the pungent smell that is the result of incineration process.
3. There’s nothing “renewable” about this resource. Once it’s burned, it’s gone, and it’s
no longer available for our use. Once that waste is incinerated, it’s not coming back
for another run at energy production (like solar or wind or geothermal might). Since
the market is heading towards renewable energy, it may not be sustainable.
4. Supplementary Fuel: Biomass was contributing 31 per cent and 52 per cent of the total
energy in case of the Hyderabad and Vijaywada plants respectively, MNRE allows only
up to 30 per cent supplementary fuel in WTE power plants. Clearly, both plants are
violating the norms.
5. Implementation Hiccups (Lack of Segregation).
6. The non-marketability of waste processed products
7. High Cost and Tariff (The non-payment of agreed fees ). The General Tariff of W2E
plants is as follows:

8
Table 5: General Tariff of W2E plants, FY 2015-16

Source: (Standing Committee on Energy, 16th Lok Sabha, 2016)

5. RULES AND POLICIES IN SOLID WASTE MANEGEMENT

Following are the Rules and policies associated with solid waste management in India:

1. Solid Waste Management Rules, 2016

2. Constitution of India (12th Schedule of 74th Amendment Act)
3. Tariff Policy, MoP
4. Bio-Medical Waste Management Rules,2016
5. e-waste (Management) Rules, 2016
6. Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016
7. Directions of NGT. (January 2017)

Out of them, Solid Waste Management Rules 2016 and Tariff Policy deal with Waste to
Energy sector and the rest of the policies effect the solid waste management as whole.

The Solid Waste Management Rules, 2016 defines the roles and responsibilities of various
authorities, the areas covered by municipalities, the waste generators and their duties and the
time frame frame for implementation of these rules.

The salient features of solid waste management rule which effect waste to energy is that it
states that Ministry of Power shall fix tariff of power generation from W2E project and ensure
distribution through companies and MNRE shall facilitate infrastructure for waste-to-Energy
plants and provide subsidy.

9
5.1 STAKEHOLDERS AND THE ROLE OF AGENCIES
INDUSTRIAL UNITS
MUNICIPAL AUTHORITY
MOUD, MOEF
MNRE
CERC, MoP


Industrial Units and Municipal Authorities are required to supply the waste and they are the
primary stakeholders in the contract based on which, capacity of the plant will be determined.
Moreover Following are the jobs of municipal authority that it will perform:

• Prepare SWM plan as per State Policy

• Timely collection of fee, funds arrangement
• Provide Facilities for W2E

MOUD and MOEF will Provide financial and policy support, MNRE will provide subsidy and
infrastructure support while Ministry of Power (MoP) will set the Tariffs of W2E plant and
CERC (Central Electricity Regulatory Commission) is the regulatory body for Tariff
determination and issues related to power supply.

The Review of implementation of solid waste management rules at various levels will be
done as follows:

MoEF&CC, Central Monitoring Committee Every year

District Collector review performance of Local authorities Quarterly
SPCBs/PCCs review implementation of Rules with DMA Half yearly
Secretary Incharge, UD- State level Advisory Committee Half yearly

5.2 GOVERNMENT SCHEMES & INCENTIVES

5.2.1 FOR INDUSTRIAL WASTE TO ENERGY PROJECTS:

Wastes / Processes / Technologies Capital Subsidy

INDUSTRIAL WASTE TO BIOGAS

i) Biomethanation of low energy density and difficult Rs. 1.0 crore / MWeq. (12000
industrial wastes Cu.m. biogas per day)
(i.e. dairy, tannery, slaughter house, sugar (liquid),
bagasse wash, textile (liquid), paper (liquid) and
pharmaceutical industry).
ii) Biomethanation of other industrial wastes. Rs. 0.50 crore/ MWeq. (12000
Cu.m. biogas per day)

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 POWER GENERATION FROM BIOGAS

i) Boiler + Steam Turbine Configuration Rs. 0.20 crore / MW

ii) Biogas Engine / Turbine Configuration Rs. 1.00 crore / MW

POWER GENERATION FROM SOLID Rs. 0.20 crore/MW

INDUSTRIAL WASTE (Boiler + Steam Turbine
Configuration)

Apart from above direct incentives, following subsidies are given to project proponent for
setting up industrial waste to energy plant:

1. Incentives to State Nodal Agencies

In order to facilitate development and their monitoring during implementation / post
commissioning, an incentive or Service Charge at the rate of 1% of MNRE subsidy up
to Rs. 5.00 lakh per project is given.

2. Financial assistance for promotional activities

Maximum of Rs. 3.0 lakhs per event /activity of financial assistance is given for
organizing training courses, business meets, seminars / workshops, and publicity /
awareness.

3. Financial support to R&D projects

This financial support is governed by the procedures / guidelines issued by the R&D
Division of MNRE.

4. Financial support for preparation of DPR
This support is maximum of Rs.2.00 lakh per report.

5.2.2 FOR URBAN WASTE TO ENERGY PROJECTS

Source: (http://www.eai.inl)
Following assistance is given for supporting setting up of waste to energy plants in municipal
area:

1. Financial assistance up to 50% of capital cost, limited to Rs. 3.00 crore per MW.

11
 2. For power generation through STPs, up to 50% of the incremental capital cost for
generation.
3. Projects based on high rate biomethanation technology: 2.0 crore / MW
4. Financial incentive of Rs. 15.00 lakh per MW is given to ULBs, for supplying the
garbage free of cost and providing land on a long-term lease (30 years and above.)
5. State Nodal Agencies are given an incentive @ Rs.5.00 lakh per MW of power for
promotion, co-ordination and monitoring of projects.
6. For financial institutions, a service charge of 2% of the actual subsidy channeled
through them ( maximum of Rs.2.00 lakh per project.)
7. 50% of the cost of preparation of Detailed Project Reports (DPR), Techno-economic
Feasibility Reports, (maximum of Rs.2.00 lakh per report)
8. Carbon Credit Benefits from MSW to Energy

Table 6: Carbon Credit Benefits from MSW to Energy

Source: (http://www.eai.inl)

6. IMPLEMENTATION METHOD IN INDORE, MADHYA PRADESH

(STUDY AREA)
The current state of solid waste management in Madhya Pradesh is shown in the following
table and graph. As analysed from the graph, there is a huge gap in the amount of waste treated
and the amount of waste that goes into the land fill, so there lies the opportunity and potential
of converting so much waste into energy and make an impact.

Table 7: Status of Waste in MP

Solid Waste Generation in the State (TPD) 6773

Collected 5480
Land Filled 4339 TPD

Treated Total waste treated: 1141 TPD

Compost Making: 701 TPD
WTE: 440 TPD
Source: (Annual Report, Madhya Pradesh Pollution Control Bo, 2016-17)

12
 7000
6000
5000
4000
3000
2000
1000
0
Category 1 Category 2 Category 3

Series 1 Series 2 Series 3

Madhya Pradesh is following Andhra Pradesh’s model of implementing W2E operations which
includes coming up of several Urban Local Bodies in the vicinity and forming cluster.

Figure 3: Operational Model Framework in Andhra Pradesh

13
Table 8: Clusters in the state of Madhya Pradesh

Source: (Annual Report, Madhya Pradesh Pollution Control Bo, 2016-17)

So the state is implementing the waste processing plants based on ‘Cluster Based Integrated
Solid Waste Manaegement’ (ISWM) framework. As per Annual Report of Madhya Pradesh
Pollution Control Board, there are total 11 clusters formed for this approach as depicted in the
above table. Central Government will provide Rs. 24 Crore to municipal bodies with over 1
million population specifically to set up waste to energy plants. Tariff based competitive
bidding process is done for each cluster and a single bidder shall be selected for setting up the
W2E project in that cluster.

In Indore, 8 towns have come together based on their geographical vicinity for easy coverage
and formed Indore Cluster. In this cluster, total of 1040 metric tonnes of waste is generated per
day which will be treated to generate energy from waste ( 40 TPD biogas plant and 1000 TPD
W2E Plant). Electricity produced will be purchased by utility discoms at fixed tariff of Rs. 7.04
per unit. Further with the progress in this direction, Indore is to build 11.5 MW of waste to
energy plant for which, construction phase is going on.

Figure 4: Cluster Based ISWM in Indore

Source: (Annual Report, Madhya Pradesh Pollution Control Bo, 2016-17)

14
7. RECOMMENDATIONS

1. Govt. should setup atleast 2 demonstration WTE Plants to show commitment. Most
Plants Set Up by private sector on PPP and have failed.

2. Okhla Plant Model could be replicated. Rest of the plants are not going very successful.

3. Increase in Private sector participation can be encouraged by:

- Additional financial grants/VGF
- Assured supply of municipal waste
- Marketability of waste recovered products
- Tax exemptions/rebates/holidays for equipment and machinery

4. Emission Problem should be mitigated with latest available emission control

technologies.

5. Ensure quality supply to W2E plant through Integrated mechanism for collection,
transportation and disposal (Multiple stakeholders involved).

6. ULB’s should prepare implementation model in time bound manner.

7. A Monitoring Committee should be setup, consisting of representatives from all the

Central Ministries like MNRE, MOEF, MOUD, State Goverment and ULB’s

15
 ANNEXURE: EXISTING PRIVATE PLAYERS IN WASTE TO ENERGY
SECTOR
Company Headquarters

BIOMETHANATION
M/S Asia Bio- energy Pvt Ltd (ABIL) Chennai

Cicon Environment Technologies Bhopal

Bermaco/WM Power Ltd Navi Mumbai
Sound craft Industries Mumbai
Hydroair Tectonics Limited Navi Mumbai
Ramky Enviro Engineers Ltd Hyderabad
Mailhem Engineers Pvt Ltd. Pune
COMBUSTION /INCINERATION
A2Z Group of Companies Gurgaon
Hanjer Biotech Energies Mumbai
SELCO International Limited Hyderabad

East Delhi Waste Processing Company Pvt New Delhi

Ltd
GASIFICATION
Zanders Engineers Limited Mohali

UPL Environmental Engineers Pvt Ltd Vadodara

Bibliography
MoUD. (2017). Swacch Sarvekshan 2017.
Aswani, S. (2016). Waste to Energy in India. Energetica India.
Ministry of New and Renewable Energy .
Standing Committee on Energy, 16th Lok Sabha. (2016). 16th Lok Sabha.
http://www.eai.inl. (n.d.).
Annual Report, Madhya Pradesh Pollution Control Bo. (2016-17).

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