NEW DELHI: The Municipal Corporation of Delhi (MCD) has cleared the way for setting up a 2,000-tonne-per-day waste-to-energy plant at the Ghazipur dumpsite, with the Centre agreeing to provide `122 crore aid and the electricity tariff fixed at Rs 7.39 per unit, it said on Monday.
The plant, which will be developed under the public-private partnership (PPP) model, is aimed at increasing the city’s capacity to process waste and generate electricity from it, Standing Committee chairperson Satya Sharma said.
Jabalpur MSW Private Limited has been selected to develop and operate the facility after a technical and financial evaluation through an e-tendering process. The Delhi Electricity Regulatory Commission (DERC) approved the proposed power tariff of Rs 7.39 per kilowatt-hour on October 13.
“The Centre of Housing and Urban Affairs will provide Rs 122 crore as Viability Gap Funding under the Swachh Bharat Mission-Urban 2.0,” Sharma said.
Under the agreement, the selected company will be responsible for financing, constructing and operating the plant. It will run the facility for 25 years after the commencement of commercial operations.
The civic body will provide land within the Ghazipur dumpsite premises on lease, subject to prescribed terms and conditions. Sharma said the project was an important step towards addressing the city’s growing waste management challenges through modern technology and scientific disposal methods. The facility is expected to help process a substantial quantity of waste at Ghazipur while generating electricity from material that would otherwise add to the city’s mounting waste burden.