Govt gives green signal to PPA for first waste-to-energy plant

Govt gives green signal to PPA for first waste-to-energy plant
File Photo used as representational Pic

Srinagar, June 26: The first waste-to-energy plant proposed to be established at AchanSaidpora here is likely to see the light of day after Power Purchase Agreement (PPA) vetted by J&K Law department has been sent to Joint Electricity Regulatory Commission (JERC) for adoption of tariff.

In an official communication by Housing and Urban Development Department, Managing Director Power Development Department has been asked to liaise with its administrative department for resolution of issue at an earliest.

“It is stated that copy of the revised PPA agreement duly vetted by the Law Department was also submitted to Power Development Department and Joint Electricity. Regulatory Commission of J&K,” the communication reads.

“You are requested to kindly liaise with your administrative department and resolve the issue at the earliest. As regards the documents sought for examination of the case, the some can be furnished after receiving the requisition from the PDD,” it adds.

The delay in finalization of PPA has hindered the progress on the establishment of waste to energy plant.

In December 2017, the National Green Tribunal (NGT) had fixed 18 months’ timeframe for the project developer to complete the project beyond which it had ordered Rs 50,000 per day penalty.

However, the pendency of an agreement (PPA) with the project developer of project has put the progress at standstill as signing of PPA was first condition after which the stipulated timeframe set by the NGT had to begin.

The proposed plant, first in Jammu and Kashmir, was approved by then state cabinet in 2017. The proposed 5MW plant would generate electricity from the waste dumped at the site.

Under the public private partnership (PPP), the Rs 200 crore cost of the plant was to be borne by the developer, an official said. The aim of the plant is to end the crisis of municipal solid waste in the Srinagar city and create mechanism for waste management at an affordable cost.

The PPA was a tripartite agreement between Housing and Urban Development Department— owner of the project, the Power Development Department which shall buy the electricity generated from the plant, and the successful bidder (developer) Syntech Bioenergy Private Limited responsible for development of the project.

As per the official documents accessed by Greater Kashmir, the PPA had to be signed with 45 days after issuance of letter of intent. The LoI was issued to the successful bidder in 2018.

However, the authorities delayed the process, forcing developer to approach LG.

ErSahil Bashir Bhat, Managing Director of the consortium Syntech Bioenergy (P) Ltd said that it was only after the intervention of LG ManojSinha that the case progressed.

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