3.1 The Ministry has been supporting programmes for the deployment of renewableenergy systems and devices such as biogas plants, photovoltaic systems, biomassgasifiers, solar cookers and other solar thermal systems, etc. in rural areas of thecountry. The Ministry has also been implementing remote village electrificationprogramme. The decentralized biogas-based power generation programme is also underimplementation since 2005-06.

3.2 Biogas production is a clean low carbon technology for efficient management andconversion of organic wastes into clean renewable biogas and organic fertilizer source.It has the potential for leveraging sustainable livelihood development as well as tacklinglocal (land, air and water) and global pollution. Biogas obtained by anaerobic digestionof cattle dung and other loose and leafy organic matters/ wastes can be used as anenergy source for cooking, lighting and other applications like refrigeration, electricitygeneration and transport applications. Since biogas plants contribute in the reduction ofgreenhouse gases (GHG) hence they can be installed for availing of CDM benefitsthereby generating additional revenue for wider coverage and reducing cost of biogasplants to government and beneficiaries. Based on the availability of cattle dung, anestimated potential of about 12 million family type biogas plants exists in the country,which can generate annually on an average basis about 15000 million cubic meter ofbiogas. In addition, biogas plants also provide high quality organic manure with soilnutrients which improves its fertility required for sustainable production andproductivity.

3.3 National Biogas and Manure Management Programme (NBMMP) is beingimplemented in the country since 1981-82 for promotion of biogas plants based oncattle dung and other organic wastes. The NBMMP mainly caters to setting up of familytype biogas plants for meeting the cooking energy needs in rural areas of the countryalongwith making enriched bio-fertilizer availability to farmers. The availability of cleanenergy mitigates drudgery of rural women, reduces pressure on forests and accentuatessocial benefits. The existing institutional network

BGFP plant at Talwade, Nasik (Maharashtra) is nearing completion

Family size biogas plant at village Laxbagan, Lahiripur Gram panchayat, Sunderbans, West

Bengal

for implementation of the programme includes State Nodal Departments/ State NodalAgencies, and Khadi and Village Industries Commission (KVIC) following a multi-modeland multi-agency approach. These agencies, in-turn, involve their State/ District levelnetwork institutions, trained turn-key workers and private entrepreneurs. Panchayatsare also involved for selection of the beneficiaries and monitoring of the programme. Inorder to provide training support and technical back-up, 12 Biogas Development andTraining Centers (BDTCs) have been set up in Universities, Indian Institute ofTechnology (IITs) and other Technical Institutes.

3.4 The NBMMP provides for Central Financial Assistance (CFA) to turn-key job workerslinked with five years’ free maintenance warranty; toilet linked biogas plants usingbiogas in engines/ gensets and refrigerators, repair of old-non functional plants; trainingof users, masons, entrepreneurs/ turn-key workers and others; publicity and extension;administrative charges; and Biogas Development and Training Centers (BDTC). Keepingin view the limited purchasing power of beneficiaries and increasing costs ofconstruction of biogas plants based on the feed-back from the implementing agencies,the Ministry has revised the pattern of CFA and other incentives for various componentsof the programme with effect from November 2009. The details of the same are given inTable 3.1. The revised Administrative Approval of the programme also includes Specialand Innovative Features’ with the objective of enhancing the reach of biogas plants,which, in turn, would help in achieving viability of this programme. These includeintroduction of competitive bidding on pilot basis for setting up biogas plants, largescale installation of biogas plants with possible CDM benefits, taking up implementationthrough Biogas-Fertilizer Companies/ Entrepreneurs (BGFCOs/ BGFEs), Banks, IREDA,Financial Institutions, Self-Help Groups, Cooperatives and NGOs and use of five per centof outlay for establishing such innovative models for financing and implementation.

3.5 In accordance with the evaluation study taken by APITCO for the biogas plantsinstalled in the 10th Plan the success rate of installation of family type biogas plants hasbeen found to be the best in the State of Punjab. It was followed by the States ofChhattisgarh and Kerala. District Kohlapur in the State of Maharashtra has got thedistinction of getting highest number of family type biogas plants installed under theNational Biogas and Manure Management Programme. The State of Maharashtra hastaken up a new initiative for installation of family type biogas plants in eco villages toprotect natural resources and to provide standard basic amenities to the rural

population. Accordingly, the physical target in the State has been raised from 8000 nos.to 20,000 nos. for the year 2010-11 under NBMMP.

3.6 In respect of repair of old non-functional biogas plants, support will be provided upto 5 percent of the outlay for the programme after, at least, five years of installation ofsuch plants. In order to improve the database and avoid duplication it is mandatory toput up beneficiary- wise list of installation of biogas–fertilizer plants on websites of therespective implementing agencies and organizations. The family type biogas plantsunder NBMMP forms the part of Twenty Point Programme 2006 (TPP 2006) under itemNo. 59.

3.7 With the installation of 4.31 million family type biogas plants by January 2011,about 35% of the estimated potential has been realized so far. Cumulativeachievements till March, 2010 and target and achievements during 2010-11 under theProgramme are given in Table 3.2. Installation of 1,19,914 family type biogas plantsduring the year 2009-10 is likely to result in the estimated annual saving of about 3.05lakh tonnes of fuel wood equivalent and production of about 115.7 lakh kg of ureaequivalent or 21.47 lakh tonnes of organic manure per year. In addition, the ruralfamilies would benefit in terms of reducing drudgery of women involved in collecting fuelwood from long distances and minimizing health hazards during cooking in smokykitchens. It is estimated that the construction of 1,19,914 biogas plants would havegenerated about 3.35

million person-days of employment for skilled and unskilled workers in rural areasduring the year. Under this programme, during the year 2010-11 over one lakh nos. ofsuch plants are likely to be constructed. One of the major reasons for the shortfallagainst potential is the inability of some large States like Uttar Pradesh and Bihar to

take up this programme in a big way.

3.8 In addition, the Ministry has started a scheme ‘Biogas based Distributed/ GridPower Generation Programme’ (BGPG programme) from 2005-06 with a view topromote biogas based power generation, especially in the small capacity range (from 3KW to 250 KW), based on the availability of large quantity of animal wastes and wastesfrom forestry, rural based industries (agro/ food processing), kitchen wastes, etc. Thedetails of Year- wise Biogas Based Distributed/ Grid Power Generation ProjectsSanctioned during 2005-06 to 2010-11 are given in Table 3.3.

Demonstration of Integrated Technology package on Biogas-Fertilizer Plants(BGFP) for Generation Purification/Enrichment, Bottling and Piped distributionof biogas as technology demonstration under RDD&D policy

3.9 Under the provisions for technology demonstration of RDD&D Policy of MNRE, theMinistry took up a new initiative for bottling of biogas to demonstrate an IntegratedTechnology-package in entrepreneurial mode on medium size mixed feed biogas-fertilizer plants (BGFP) for generation, purification/enrichment, bottling and pipeddistribution of

Medium size Biogas plant based power generation plant at village Thamna, Distt. Anand, Gujarat

biogas. Installation of such plants aims at meeting stationary and motive power,cooling, refrigeration and electricity needs in addition to cooking and heatingrequirements. There could be a huge potential of installation of medium size biogas-fertilizer plants in various villages of the country. Under the demonstration phase, theMinistry is providing a central financial assistance of 50 percent of the cost (excludingcost of land) for a limited number of such projects for implementation following anentrepreneurial mode on BOO & re-imbursement basis.

BGFP project at Abohar, Ferozepur (Punjab) is under installation

3.10 Under the programme a total of sixteen number of BGFP projects have beensanctioned including eight BGFP projects with aggregate capacity of 6500 cum/daysanctioned in the States of Rajasthan, Haryana, Karnataka, Maharashtra and Punjab fortheir implementation during the current year. The details of sanctioned projects during2010-11 are given in Table 3.4.

3.11 The BGFP project sanctioned to Ashoka Biogreen at villiage- Talwade Distt. Nashik(Maharashtra) is near completion. The biogas generated from the plant has beenpurified and a purity of 98.4% methane has been achieved through a test conducted byShriram Institute for Industrial Research, Delhi.

3.12 During the year, various meetings have been organized and committees set up forstreamlining necessary approvals from Petroleum and Explosives Safety Organization(PESO), DIPP, Ministry of Commerce and Industry, Bureau of Indian Standard (BIS),Central Pollution Control Board (CPCB) and Ministry of Environment and Forests.

3.13 During the year the Ministry also invited expression of interest (EOI) for highercapacity biogas generation, purification and bottling projects on different type ofbiomass wastes available at different locations including sugar mills, agro-processingplants, poultry units, etc. These projects may have biogas generation

capacity of above 1000 m3. The capacity of BGFP could be 1,100 m3 to 20,000 m3

biogas/ day and above thereof depending on the availability of suitable biomass feed-materials and cattle-dung. The MNRE support of 30-40% can be made available fortaking up a limited number of such technology demonstration projects under RDD&Dpolicy of the Ministry.

3.14 The Remote Village Electrification Programme is being implemented by theMinistry to provide lighting/electricity using renewable energy, in those remoteunelectrified villages and hamlets, which are not going to be covered under Rajiv GandhiGrameen Vidyutikaran Yojana (RGGVY) for grid electrification. The Programme is beingimplemented in complementary mode to RGGVY. It is also worthwhile to mention thatthe National Rural Electrification Policy, 2006 clarified that provision of renewableenergy based systems in unelectrified villages and hamlets should not jeopardize therights of such villagers to grid connectivity. The Programme has continued during the11th Plan and a budget allocation of `80 crore was made for the year.

3.15 The Programme is implemented in states by state notified implementing agencies.The Ministry provides Central Financial Assistance of upto 90% of the costs of

installation of various renewable energy devices/systems. In addition, many otherpromotional supports and a substantial

SPV Home Lighting System in a hut in Jaisalmer Distt. of Rajasthan

amount of service charge are provided to the state implementing agencies.

3.16 Although a variety of renewable energy technologies are possible for electrificationof remote villages including small hydro, biomass and solar energy, yet, solar PVlighting remains the most preferred. The decision to use a particular technology is takenby the state implementing agencies after examination of the technical feasibility andresource availability.

3.17 The cumulative sanctions under the Programme since its inception reached around11,000. The state-wise details are given in Table 3.5. A target for coverage of 10,000villages and hamlets has been set for the 11th Plan, of which 4589 villages and hamletshave been taken up by 15.01.2011. The main States where the Programme has greaterrelevance, due to their inaccessible areas are Jammu and Kashmir, Madhya Pradesh,Orissa, Chhattisgarh, Jharkhand and the North Eastern states. Special priority is beingaccorded to villages affected by internal disturbances in line with the policy of theGovernment.

3.18 In addition several steps were initiated during the year to accelerateimplementation of the Programme. A Coordination Committee has been constitutedunder the chairmanship of Secretary, MNRE for the Programme in accordance with themechanism approved by the Cabinet. The other members of the Committee includerepresentatives of Ministry of Power, Rural Electrification Corporation, Ministry ofPanchayati Raj and Planning Commission. The Committee approves the proposals forfinancial support under the programme.

3.19 A number of review meetings have been held during the year with the stateimplementing agencies to expedite the implementation of already sanctioned projectsand also to impress upon them the need to identify early the villages and hamletsexcluded from RGGVY for coverage under the programme. Such meetings have beenheld at the level of Secretary with the North Eastern states, Jharkhand, Orissa, UttarPradesh, Jammu & Kashmir, Madhya Pradesh, etc. Reviews through video conferencingmode have also been started.

3.20 National Council of Applied Economic Research, New Delhi has carried out anevaluation

Notes 133 villages in Assam, 114 villages in Chhattisgarh, 19 projects in Madhya Pradesh, 3 in Maharashtra, 24 in Rajasthan, 4 in Karnataka, 53 in Uttarakhand, 5 in Jharkhand and 168 in UP and 145 hamlets in Tripura and 51 hamlets in Tamil Nadu have been cancelled by the State Governments as they were taken up for grid electrification.

SPV street light installed in a remote village in Kokrajhar district of Assam

study in three states viz Madhya Pradesh, Orissa and Chhattisgarh during the currentyear to assess the implementation of the RVE Programme. The study has found thatprovision of lighting in the remote villages has improved the life of the villagers. Around5200 households in 186 villages of the three states were covered by the survey. Thefunctionality of the Solar lighting systems was found to be between 68 to 86%.

3.21 In continuation of its efforts for involvement of different stakeholders, such as theconcerned officials of the district and the SEB, the beneficiaries,

the local elected representatives, NGOs, etc., the Ministry sponsored a number oftraining and awareness programmes in different states.

3.22 Limited number of Test Projects on Village Energy Security was taken up in the10th Plan to meet total energy requirements of villages in an efficient, reliable and cost-effective manner. These projects were undertaken by the Gram Panchayats andfacilitated by SNAs, District Rural Development Agencies (DRDAs), Forest Departmentsand NGOs.

3.23 61 VESP test projects have so far been commissioned, of which six test projectshave been commissioned and eight test projects have been completed during the year2010-11 (till 31st January, 2011). Details of the projects are given in Table 3.6.

3.24 During Mid-Term Appraisal of 11th Plan in September, 2009, “it was decided toconcentrate on consolidating the projects already taken up for implementation and takeup new villages only under the RVE Programme. During the remaining period of 11th

Plan, consolidation of VESP activities will be undertaken. As such, new VESP testprojects are not being sanctioned.