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NEW DELHI : The Centre has issued guidelines for rolling out its waste-to-energy programme, paving the way for companies to produce biogas and bioCNG, and electricity from urban, industrial and agricultural waste and residues.

The government will offer financial assistance to project developers, while implementing agencies, including inspection firms, will be paid service charges for commissioning the waste-to-energy plants, the new and renewable energy ministry said in a notification.

The programme is part of an umbrella scheme, the National Bioenergy Programme , which has an outlay of 858 crore for phase-I. Nearly 600 crore has already been allocated for the waste-to-energy programme, the ministry added. The rules were issued after the President sanctioned the implementation of the umbrella scheme, which also comprises the biogas and biomass programmes.

The ministry said the Indian Renewable Energy Development Agency (IREDA) will be the implementing agency for the programme. According to the guidelines, standard central financial assistance for the biogas projects will be 25 lakh for 12,000 cubic metre a day. The maximum assistance for a biogas project was pegged at 5 crore. The Centre will provide financial assistance of 75 lakh per MW for new biogas plants and 50 lakh per MW for existing units.

“If the waste-to-energy plants are set up in special category states, such as the North East, Himachal Pradesh, Sikkim, Jammu and Kashmir, Ladakh, Lakshadweep, Uttarakhand, and Andaman & Nicobar Islands, the eligible CFA will be 20% higher than the standard CFA pattern," the ministry added.

IREDA will be paid a service charge of 1% of CFA to process applications, besides 1% for the CFA (minimum 50,000) for implementing, and monitoring the performance once the plants are commissioned.

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