The Hindu : Andhra Pradesh / Hyderabad News : 14 firms respond to MCH notification

Online edition of India's National Newspaper
Friday, Dec 17, 2004

Andhra Pradesh

Andhra Pradesh - Hyderabad

14 firms respond to MCH notification

By Our Staff Reporter

HYDERABAD, DEC.16. Fourteen firms have shown interest to set up solid waste (garbage) processing plants for generating electricity in response to a tender notification issued by the Municipal Corporation of Hyderabad (MCH).

Proposals have been sought for processing of 1,500 tonnes of solid waste, and applicants are required to come up with a technology that conforms to the norms laid down under the Environment (Protection) Act of 1986, Municipal Solid Waste (Management and Handling) Rules of 2000 and recommendations of the Central and State Pollution Control Boards.

The capital area under the corporation limits generates some 2,200 tonnes of garbage each day. The Solid Waste to Electricity Company (Selco), which is running successfully by converting garbage to power, takes in 400 tonnes for generating 6 MW of power being fed into the grid of the Transmission Corporation of Andhra Pradesh (APTransco). Permission has also been given for another garbage-to-power plant to RDF, but it is yet to commence operations.

Conditions

Enthused by the Selco plant's run, the corporation has come out with a set of conditions for the applicants, where it is made clear that no financial support would be given. Proposed units have to pay a royalty of Rs. 10 per tonne of garbage lifted and 2.5 per cent of the final product. It further wants payment of 2.5 per cent of the project cost as performance guarantee before entering into an agreement.

Technology of the units has to be suitable for un-segregated garbage generated in the twin cities. Transport costs from designated garbage transfer stations have to be met by the units themselves as also the arrangements for entering into power purchase agreements with the appropriate authority.

Technology evaluation

The MCH Commissioner, Chitra Ramachandran, says that the proposals received will be placed before a technical-level committee and a high-power State committee to evaluate the technical and financial viability of the units before selections are made. The technical panel will have representatives from APGenco, Nedcap, EPTRI and other organisations while the State panel will consist of senior officials of the departments of Municipal Administration, Environment and Sciences, Finance, APPCB, etc.

`Cost effective'

Senior officials say that having municipal solid waste- to-power plants will reduce the quantity of garbage going into the landfill, besides cutting down the costs and space in handling solid waste. It is estimated that 14 acres of land is required for 100 tonnes and it costs Rs.1 crore for a landfill spread over an acre, which means Rs. 14 crores for every 100 tonnes of garbage. With a processing plant, landfill requirement will be reduced to four acres only.

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