In news: Uttar Pradesh recently launched its Bioenergy Policy 2022 to boost bio-economy and reduce dependence on fossil fuels.
About the policy:
- The policy highlights four bioenergy constituents: Compressed biogas (CBG), ethanol, biodiesel and bio-coal, a carbon-neutral fuel from biomass waste.
- It sets a highly ambitious target to generate 1,000 tonnes per day (TPD) of CBG, 4,000 tonnes per day of bio-coal and 2,000 kilolitre per day of bioethanol and biodiesel by 2026-27.
- Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) is the nodal agency for implementing this scheme across the state.
- The scheme provides a subsidy of Rs 75 lakh per tonne of CBG, Rs 75,000 per tonne of bio-coal and Rs 3 lakh per kilolitre of biodiesel, with a cap of Rs 20 crores.
- Units can use this subsidy for plant and machinery, infrastructure, construction, power supply, and transmission system-related works, excluding administrative building and land costs.
- Each tehsil in the state is to have at least one bioenergy plant, which means a minimum of 350 bioenergy units across UP.
- A 10 TPD capacity CBG plant generally requires 10 acres of land for installation and 25 acres for feedstock storage. A 100 TPD capacity bio-coal plant needs two acres of land and a 100 kilolitre per day biodiesel plant needs 1.5 acres of land.
- The scheme was established to boost agricultural mechanization in the nation and increase inclusivity.
- Electricity tariffs and tax exemptions:
- 100 per cent electricity charge waiver for ten years
- Stamp duty and sale deed registration fees waiver
- no development charges
- Land on non-transferable lease @Re 1 per acre for a maximum of 30 years
- A 5 km approach road connecting it with the main highway will be constructed, if an investor infuses Rs 50 crores or more in a bioenergy plant.
- Incentives on equipment
- Subsidy under the Sub-Mission on Agricultural Mechanization (SMAM) scheme.
- 30 per cent subsidy (max Rs 20 lakh) on purchasing equipment
- North-eastern states, the subsidy is 100 per cent, going up to a maximum of Rs 1.25 lakh per user.
- UPNEDA’s Bioenergy Online portal for single window clearance
- for easy application and improved transparency.
- directly file and monitor the progress of their applications.
- build pressure on the district officials to clear bioenergy project-related regulatory clearances in a time-bound manner
- Coordination among state departments
- to help potential investors
- facilitate necessary approvals from the district magistrate’s office.
- collaborate with other state departments to receive relevant data for sanctioning future realistic projects
- better marketing of products
- A district-level committee will ensure that bioenergy plants remain economically viable and every investor gets a level playing field
- Manage feedstock supply chain and ensure right costing and convince farmers of a unanimous price of the feedstock with a long-term contract and ensure that the payments are transferred within 15 days.
- Firstly, a continuous and long-term feedstock supply below a fixed price is needed to ensure the right functioning and healthy economic factors for the bioenergy plant.
- Secondly, oil marketing companies shall refrain from procuring the CBG on a best endeavours’ basis as it leads to financial instability for the manufacturer when his product is left unsold
- Lastly, despite having the same fuel characteristics, there is a large disparity in the CBG and CNG procuring prices that needs to be addressed.
Source: Down to Earth
Previous Year Question
Q.1) According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels? (2020)
- Damaged wheat grains
- Groundnut seeds
- Horse gram
- Rotten potatoes
- Sugar beet
Select the correct answer using the code given below:
- 1, 2, 5 and 6 only
- 1, 3, 4 and 6 only
- 2, 3, 4 and 5 only
- 1, 2, 3, 4, 5 and 6