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Indrani Dutta

Kolkata , May 11

HINDUSTAN Motors Ltd (HM) plans to enter the renewable energy sector by setting up a 6 MW power plant based on rice husk.

The plant is proposed to be set up in Hooghly district where the HM factory is located.

The company revealed its plans while participating in an expression of interest (EoI) invited by the State Government for roping in private players in the non-conventional energy sector.

Apart from HM, Eastern Minerals and Trading Agency (EMTA), a captive mining company owned jointly by three State sector power utilities, have also shown interest in setting up rice husk-based units.

These two companies, along with the Hyderabad-based Sri Vasavi Industries and Nuziveedu Seeds Ltd, are among the nine companies interested in setting up such units with a total capacity of 88 MW.

The EoI was invited in February 2004 by the West Bengal Renewable Energy Development Agency (WBREDA) to attract investment in the sector through projects in the private sector, joint sector and through NGOs.

The identified projects included creation of 160 MW capacity through small and mini hydel projects, wind energy, biomass power generation (which includes rice husk) and industrial/municipal solid waste-based power projects.

Biomass-based projects are proposed to be set up in the Burdwan, Hooghly, Birbhum and Midnapore districts. Evaluation of these EoIs, which was put off due to the polls, would be taken up shortly, according to sources.

Sources said that rice husk has begun to emerge as a feasible energy option for many corporates in the state, which is the country's biggest rice producer.

The companies have mostly opted for Hooghly and Burdwan districts - considered to be the State's rice bowl.

It is here that WBREDA has catalysed the setting up of rice husk-based gassifier power plants.

These plants, which started off as demonstration units, were set up by the rice millers themselves with a total capacity of 6 MW.

These millers have also formed the Rice Mill Owners' Green Power Consortium which has now initiated moves - through Ernst & Young - to claim funding support under the clean development mechanism (CDM) of the Kyoto Protocol.

Sources said that for corporates entering the renewable energy sector, claiming CDM benefits offers an additional incentive making the project even more attractive.

Besides substituting fossil-based fuels, they could also `wheel' in the green power generated through the West Bengal State Electricity Board under the Electricity Act 2003, sources said.

Under the Kyoto Protocol, CDM has been defined as a production method that helps reduction in greenhouse gases. An Indian company achieving emission reduction through better technology and efficiency qualifies for CDM credits, which can bring funding support from overseas companies that will `buy' the credits in lieu of funds.

More Stories on : Diversification | Cars | Non-conventional Energy

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