3.2 Government Support for Sewage to Energy Projects3.2.1 Projects based on high rate biomethanation technologyFinancial assistance of Rs. 2.0 crore / MW will be provided for projects based on powergeneration from MSW through high rate biomethanation technology.3.2.2 Power generation at sewage treatment plantsFinancial assistance @ 40% of the project cost subject to a maximum of Rs 2.0 crore/MWwill be provided for projects for generation of power generated from biogas being producedat Sewage Treatment Plants. Project cost will include the cost of engine genset, H2Sremoval plant and other related equipment.3.2.3 Carbon Credit Benefits of Sewage to EnergyProjects based on generation of electric power from biogas, which is being producedas a result of digestion of sludge in STPs, are eligible for CDM (Clean DevelopmentMechanism), as it will help in reducing and stabilizing the emissions due to methanewhich is a green house gas. Based on the potential of biogas/power generation fromSTPs, expenditure on O&M can be offset by earningcarbon credits on recurring basis.8Table 6: Examples for Carbon Credits Projects by the Indian Waste Management IndustryS No. Project Average AnnualEmission Reduction(CERs)*1 2 3 4 5 6 7 8 9 10Bundled Waste Processing Facilities in India Gorai Landfill closure and Gas Capture Project, Mumbai,IndiaInstallation of Bundled Composting Project in the state ofTamil NaduUpgradation and expansion of APMC compost plant atTikri, DelhiEstablishment of compost production unit of 100TPD atLalganjUpgradation, operation and maintenance of 200TPD composting facility at Okhla, New DelhiAvoidance of methane emissions from MSW and food wastethrough compostingMSW based composting at Kolhapur, Maharashtra The Timarpur-Okhla Waste Management Company PvtLtd?s (TOWMCL) integrated waste to energy project inDelhiSESL 6MW MSW based power project at Vijayawada &Guntur, Andhra Pradesh1,58,0771,24,0281,15,16235,32942,05033,46123,43130,4302,62,79164,5999Some sewage treatment plants in India are on the verge of getting the carbon credits forits efforts for reducing the carbon-dioxide emission in their sewage treatment plants.Table 7: Carbon Credits for Sewage Treatment Plants in IndiaS No. Sewage Treatment ProjectSewageTreatmentPlant CapacityCER?s AnnualRevenueEstimatedINR*1. 2. 3. 4.Chennai SewageTreatment Plantwith a capacity of250 MLDtion(SMC)Delhi Jal Board(DJB)Wastewater treatment for 1500villages in Punjabwith a averagepopulation250 MLD 600 MLD 2500 MLD 360 MLD61,000 50,000 116,256 1,86,26445.75 million37.5 million87 million140 millionSurat Municipal Corporaa3.3 Government Support for Industrial Waste to Energy ProjectsCentral Financial Assistance (CFA)Central Financial Assistance(CFA) to different categories of projects would be givenin the form of capital subsidy to the promoters and as Grants in Aid for other activities,as given below.Capital subsidy to the promoters Incentives to State Nodal AgenciesState Nodal Agencies would be provided an incentive / service charge @ 1% of MNREsubsidy restricted to Rs. 5.00 lakh per project, in order to facilitate development ofprojects and monitoring during implementation / post commissioning 
Financial assistance for promotional activitiesFinancial assistance would be provided for organizing training courses, business meets,seminars / workshops, and publicity / awareness on case-to-case basis, subject to a maximum of Rs. 3.0 lakhs per event /activity.Financial support to R&D projects Financial support would be provided to R&Dand Applied R&D projects which includes studies on resource assessment, technologyupgradation, performance evaluation etc. to institutions as well as industries. This willbe governed by the procedures & guidelines being issued by the R&D Division of MNREseparatelyFinancial support for preparation of DPR 50% of the cost of DPR preparation,limited to Rs. 1.00 lakh/project, will be reimbursed to the promoters at the time ofsanction of project.10Table 8: Capital subsidy to the promotersWastes / Processes / Technologies Capital SubsidyIndustrial waste to Biogasi) Biomethanation of low energy density and difficult industrial wastes (i.e. dairy, tannery, slaughter house, sugar (liquid),bagasse wash, textile (liquid), paper (liquid) and pharmaceutical industry).ii) Biomethanation of other industrial wastes.Rs. 1.0 crore /MWeq. (12000Cu.m. biogas perday)Rs. 0.50 crore/MWeq. (12000Cu.m. biogas perday)Power Generation from Biogasi) Boiler + Steam Turbine Configuration ii) Biogas Engine / Turbine ConfigurationRs. 0.20 crore / MWRs. 1.00 crore / MWPower Generation from Solid Industrial Waste (Boiler+ Steam Turbine Configuration)Rs. 0.20crore/MW4 WasteIndia Waste geneerattion scenarioEvery year, about 55 million tonnes of municipal solid waste (MSW) and 38 billionliters of sewage are generated in the urban areas of India. In addition, large quantities ofsolid and liquid wastes are generated by industries. Waste generation in India is expectedto increase rapidly in the future. As more people migrate to urban areas and as incomesincrease, consumption levels are likely to rise, as are rates of waste generation. It isestimated that the amount of waste generated in India will increase at a per capita rateof approximately 1-1.33% annually. This has significant impacts on the amount of landthat is and will be needed for disposal, economic costs of collecting and transportingwaste, and the environmental consequences of increased MSW generation levels.4.1 Urban Wastes in IndiaThe proliferation of urban waste has direct impacts on sanitation in India. With crowdedcities and significant poverty, millions of people in Indian cities are directly exposed tothe harmful effects of all urban waste, especially from fecal and sewage sludge from riversand lakes. The economic costs of these harmful effects are indeed dire.4.1.1 Municipal Solid Waste (MSW)Municipal Solid Waste (MSW) is more commonly known as trash or garbage. MSWincludes commercial and residential wastes generated in municipal or notified areas ineither solid or semi-solid form excluding industrial hazardous wastes but including treatedbio-medical wastes. It consists of household waste, wastes from hotels and restaurants,construction and demolition debris, sanitation residue, and waste from streets.MSW Generation in IndiaAs per estimates more than 55 million tons of MSW is generated in India per year; theyearly increase is estimated to be about 5%. It is estimated that solid waste generated11  

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