Scheme to support municipal waste-to-energy projects
New Delhi, Feb 28 : The union government will evolve a scheme to encourage cities and municipalities to take up waste-to-energy projects, said Finance Minister P. Chidambaram Thursday.
"India tosses out several thousand tonnes of garbage each day. We will evolve a scheme to encourage cities and municipalities to take up waste-to-energy projects in public-private partnership mode which would be neutral to different technologies," he said, while presenting the union budget in parliament.
"I propose to support municipalities that will implement waste-to-energy projects through different instruments such as viability gap funding, repayable grants and low cost capital," he said.
Chidambaram said clean and green energy is a priority of the government.
"However, despite cost advantages in labour, land and construction, the consumer pays a high price for renewable energy. One of the reasons is high cost of finance."
"In order to provide low cost finance, government will provide low interest bearing funds from the National Clean Energy Fund (NCEF) to viable renewable energy projects. The scheme will have a life span of five years," he said.
The finance minister also said the non-conventional wind energy sector deserves incentives.
"Hence, I propose to reintroduce 'generation-based incentive' for wind energy projects and provide Rs.800 crore to the ministry of non-renewable energy for the purpose," he said.
The budget allocation for the environment ministry saw an increase of 31 percent from the revised estimates last year.
The total outlay for the climate change action plan, wildlife and forestry sector saw an increase while prevention and control of pollution saw a drop.