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Web Exclusive | April 2013

MP strives hard to attract developers for biomass projects

Madhya Pradesh government's ambitious plans to generate power from bagasse and biomass - agriculture residue - have literally taken only a small step. At a time when neighbouring states like Chhattisgarh and Rajasthan are significantly generating power from residues, Madhya Pradesh is struggling to woo project developers.

In last three financial years, the State has generated only six million units each year from bagasse cogeneration and biomass power projects whereas Chhattisgarh, which has its existence for a decade, has continuously improved during the same period. The State generated 936.6 million units during 2009-10, which increased to 1,391.4 million units in 2011-12. Similar is the status of Rajasthan.

According to sources, the State which boasts of having highest agricultural growth rate and has been striving hard to attract project developers through road shows has failed to attract them owing to government apathy and policy flaws. Among the few are low tariffs at which electricity board buys from developers, restricted inter-state open access and no regulations on rising biomass cost.

Government should revise tariffs so that running the project is feasible. A few are nearing completion, but it is becoming to survive under such circumstances, said Orient Green Power, which invested Rs 65 crore for 10 mw power generation in Narsinghpur area of the state.

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