Nagpur: The Maharashtra Electricity Regulatory Commission (MERC) has completed the process to determinate tariff for electricity to be generated at the waste-to-energy project of the Nagpur Municipal Corporation (NMC). The construction of the power plant coming up at Bhandewadi dumping yard will start after the commission passes the tariff order, which is likely to come soon.
The NMC had started planning the project three years ago. Tha plant will have capacity to generate 11.50MW electricity. Private operator Nagpur Solid Waste Processing and Management Private Ltd (NSWPMPL) that will execute the project had requested the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to purchase the power. MSEDCL suggested NSWPMPL to get tariff determined from the MERC.
NSWPMPL, a joint venture of Essel Infraprojects Limited and Hitachi Zosan India Private Ltd, requested MERC to determine tariff of Rs7.80per unit. MERC, headed by retired IAS officer Anand Kulkarni, recently held a hearing in Mumbai on the petition. Municipal commissioner Ashwin Mudgal and representatives of NSWPMPL were present at the hearing.
The NMC had recently allotted 10 acres to NSWPMPL for the project at a nominal rate. Mudgal told TOI that the company has done land demarcation and is also ready to commence construction of the power plant. "The plant can generate power from 800 metric tonne garbage, with potential to increase it by 20%. The project aims to dispose off garbage in a scientific manner and also earn wealth from waste," he said.
As per NSWPMPL's petition, the estimated cost of the project is Rs218.80 crore. The NMC will give the company Rs70 crore as viability gap funding during execution of the project. NSWPMPL will raise the remaining amount within two years and operate and maintain the project for 15 years.
The NMC will pay tipping charges of Rs225 per tonne, which will increase by 4.5% every year. NSWPMPL will earn revenue by selling power.
NMC sources told TOI any decision of the MERC will not add to financial burden of the civic body. "It is up to the MERC to approve Rs7.80 per unit or less. Decision is taken considering norms and also financial calculations of the project," sources said.
