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Rajasthan
Policy for promoting generation of electricity from biomass 2010

Date of issue

26 February 2010

Title of policy document

Policy for promoting generation of electricity from Biomass, 2010

Nodal agency

Rajasthan Renewable Energy Corporation Limited (RRECL)

Offtake arrangement

Power Purchase Agreement (PPA)

Yes

Use for captive

Yes, in case of third party sale or for captive use within the State, the power producer shall execute a wheeling agreement with distribution company (DISCOM). However, the wheeling agreement with Rajasthan Rajya Vidyut Prasaran Nigam Ltd (RVPN) will be executed separately if the power producer intends to use the system of RVPN for wheeling power.

Sale to third party

Sale to DISCOM

PPA executed between the DISCOM and the power producer as per the order of Rajasthan Electricity Regulatory Commission (RERC).

Grid interfacing

Biomass Power Producer (BPP)

  • Generating plant substation shall be developed andmaintained by the BPP as
        per the grid code.
  • BPP shall pay the grid connectivity charges (as decided by RREC from time to
        time) to the DISCOM/RVPN within 3 months of signing PPA.
  • BPP shall develop the evacuation system beyond generating plant substation till
        the nearest RVPN’s 220/132/33kV or 132/33kV grid substation.
  • Costing

    Cost to be paid by developer/power producer to RVPN/Discom for civil works and interconnection with electrical system.

    Transmission and distribution augmentation

    RVPN/DISCOM shall provide interconnection facility one month before scheduled date of commissioning (COD).

    Transmission company

    Power producers will terminate their 33kV power evacuation feeder at nearby RVPN's 132/33kV or 220/132/33kV grid substation (GSS) or any other RVPN's GSS in consultation with RREC.

    Registration of projects

  • Biomass power projects up to 20 MW shall be eligible.
  • Biomass power projects of less than 5 MW can be set up within the reserved
        area of any 5 MW plant. But for higher capacity than 5 MW, RREC’s permission is
        required. Further no area shall be kept reserved for biomass power project of
        less than 5 MW.
  • The power producer shall submit the application to RREC in prescribed
        performa along with the following:
  • i.
    Certified copy of the memorandum and Article of Association of the Company.
    ii.
    Certified copy of the registration certificate.
    iii.
    Certified copy of the partnership deed.
    iv.
    Certified copy of the authority conferring powers on the person(s) who are competent to execute the Memorandum of Understanding (MoU) agreement with Government of Rajasthan (GoR)/RREC/ RVPN/DISCOM.
    v.
    Biomass Assessment Report.
    vi.
    Pre-Feasibility Report (PFR)/ Detailed Project Report (DPR).
    vii.
    Processing fee of Rs 25,000 per MW in the form of demand draft (DD) payable to RREC at Jaipur.
    viii.
    Annual report of the company for last three years.
  • RREC to issue acceptance to the project within one month from the date of receipt
        of complete application.
  • If power producer submits an application for a specific area without PFR/ DPR and
        Biomass Assessment Report, an application registration number (ARN) will be
        given by RREC and the area will be booked for that power producer.
        On submission of DPR and Biomass Assessment Report within 6 months from
        the date of registration of application, the project will be registered with RREC.
  • If DPR and Biomass Assessment Report are not submitted within the stipulated
        period of 6 months the application shall be cancelled and the specific reserved
        area will be free for any other power producer.
  • If producer wants to change the location of power plant due to insufficient
        availability of biomass, the application for change is to be given within 3 months
        from the date of submission of ARN. RREC to reserve new available area within 15
        days, but DPR and Biomass Assessment Report for new site have to be submitted
        within 8 months of the date of allotment of ARN; otherwise application would be
        cancelled.
  • Biomass power plants commissioned under earlier policies of State Government
        shall continue to be governed by the relevant policies in operation at the time of
        commissioning the project.
  • Plant for captive use without using State grid has to register the project with RREC
        and to take approval of the State Government for setting up the project.
  • Time Schedule/Penalty Provisions

    a) Deposit of security amount

    Within two months from the date of issue of Project Registration Number (PRN)

    b) Finalization of land, power evacuation plan and availability of water

    Within 4 months from the date of issue of PRN

    Extension for (a) and (b)

    Up to four months

    Penalty for (a) and (b)

    Up to two months at Rs 15,000 per MW and 2 to 4 months  at Rs 25,000 per MW

    Commissioning of biomass power project

    Should be completed within 24 months from the date of approval

    Extension period

    More than nine months delay

    Penalty

    Rs 1,00,000 per MW
    No further extension will be provided beyond nine months

    Incentives by State Government

    Electricity duty

    Exempted from Electricity Duty at 50% for a period of seven years from COD.

    Industrial grant

    Yes

    Land allotment

    For Government land, the land allotment is to be approved by the Revenue Department. The land shall be allotted to BPP at concessional rates of 10% of District Level Committee (DLC) rates.
    For private land, the land to be procured by BPP and land conversion done by the competent authority.

    Water availability for renewable energy (RE) projects

    BPP shall be allowed to use water from sources of Water Resource Department subject to the availability of water for power generation. In case of ground water demand, permission shall be granted by Ground Water/ Water Resource Department.

    Single window clearance

    RREC – For all necessary approvals; facilitation of loans/ grants; land allotment; selection of bidding process; coordination with Government and registration of projects.

    Other promotional schemes

  • Area reserved for biomass power plants above 5 MW. No other biomass power
        project shall be permitted within the reserved area of existing/approved/earlier
        registered projects as specified here:
  • Capacity (MW)

    Area reserved (Radius in km)

    5

    60

    More than 5 and up to 7.5

    75

    More than 7.5 and up to 10

    80

    More than 10 and up to 12.5

    85

    More than 12.5 and up to 15

    90

    More than 15 and up to 20

    100

  • The biomass produced within Rajasthan being utilized as fodder such as Wheat
        husk, Millet husk, Barley husk, Jowar husk, etc. shall not be allowed to be used as
        fuel for biomass power project.
  • As per RERC order dated 17 August 2009, the BPP shall be allowed to use fossil
        fuel (such as coal/lignite/natural gas/municipal waste) up to 15% during the lean
        period in some years.
  • Promotion of development of Prosopis Juliflora/other energy plantation on
        Government land for use as supplementary fuel in biomass power plants.
  • Contact details

    Rajasthan Renewable Energy Corporation Limited
    E-166, Yudhishthir Marg
    C-Scheme, Jaipur 302 005 
    Tel: 0141 222 5859/0141 222 5859,
    Fax: 0141 222 6028,
    Email: rrec_jai@yahoo.co.in
    Website: www.rrecl.com

    Policy document

    Policy

    Promotion of development of Prosopis Juliflora / other energy plantation on Government land for use as supplementary fuel in biomass power plants

    Eligibility criteria

    Facility available to power plants that intend to supply 100% to state DISCOM and those power plants which are commissioned under earlier policies of the State Government and are supplying 100% power to state DISCOM.

    Categories of land available

  • Degraded forest land suitable for development of Prosopis Juliflora/other energy
        plantation through Joint Forest Management (JFM) committee.
  • Government waste land/barren land/saline land suitable for development of
        Prosopis Juliflora /other energy plantation through concerned Gram Panchayat.
  • Panchayat waste land/barren land/saline land suitable for development of Prosopis
        Juliflora/other energy plantation through concerned Gram Panchayat.
  • Identification of suitable land

    i.  Biomass Power Producer (BPP) to identify suitable land for development of
        Prosopis Juliflora/other energyplantation within the reserved area of power plant
        registered with RREC after approval of the project.
    ii. Maximum 500 hectare per MW land in all above mentioned categories to be
        permissible for development of Prosopis Juliflora/other energy plantation.

    Application for permission to crop Prosopis Juliflora/other energy plantation on the identified land

    i.  For identified land, permission of RREC is required.
    ii.  For non-forest land, permission of the concerned Gram Panchayat is required.
    iii. For degraded forest land, permission of the concerned JFM committee is required.

    Grant of permission

  • District Level Empowered Committee (DLEC) provide land to the Gram
        Panchayat/ JFM committee for a period of 20 years, that can be extended for a
        period of another 10 years.
  • After approval of DLEC, a tripartite agreement between concerned Gram Panchayat,
        Zilla Parishad (CEO) and power producer is executed with respect to the identified
        land.
  • In case of degraded forest land, a tripartite agreement is executed between JFM
        committee, Forest Department and power producer.
  • Determination of sale price by DLEC

    i.  Price of biomass produced from Prosopis Juliflora/other energy plantation
        determined by DLEC for every financial year on the basis of fuel cost prescribed by
        RERC.
    ii. Responsibility of cutting down biomass and its transportation from plantation site to
        the power plant site is with the BPP. 40% of the fuel cost prescribed by RERC to be
        taken as cost towards cutting, uprooting and transportation on lump sum basis.
    iii. BPP to establish weighing facility at the plant site under the direction of DLEC.
    iv. BPP to make the annual payment to Gram Panchayat/JFM committee as per the
         price determined at clause (ii) above in four equal quarterly instalments as per
         schedule given in the policy.

    One time uprooting/harvesting of Prosopis Juliflora from degraded forest land

    Prosopis Juliflora grown on degraded forest land, which is identified by the Forest Department for one time uprooting/harvesting, falling within the reserved area of biomass power plant to be made available to the plant on priority.

    Withdrawal of permission for development of Prosopis Juliflora/other energy plantation

    If BPP fails to install/commission the power plant, the permission given for development of Prosopis Juliflora/other energy plantation on the identified land and all the grants allowed above shall stand cancelled.

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