energy plantation 280911[1]

Upload: akhilesh-gupta

Post on 04-Apr-2018

217 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/30/2019 Energy Plantation 280911[1]

    1/25

    BI0-ENERGY ROAD MAP-

    ENERGY PLANTATION

    9/28/2011Dalkia Energy Services Ltd.

    G C Datta Roy

    The Great Eastern Centre, Ryder Tower, First Floor, 70, Nehru Place, New Delhi -110019

    Tel. +91 11 4079 1100 Fax. +91 11 4079 1101 Email : [email protected]

  • 7/30/2019 Energy Plantation 280911[1]

    2/25

  • 7/30/2019 Energy Plantation 280911[1]

    3/25

  • 7/30/2019 Energy Plantation 280911[1]

    4/25

    AbbreviationsBDO Block development Officer

    CDM Clean Development Mechanism

    DC District Collector

    DESL M/S Dalkia Energy Services Limited

    DLEC District level empowered committee

    DFID Department for International Development

    DFO District Forest Officer

    DPR Detailed Project Report

    DWDU District Watershed Development Unit

    GEF Global Environment FacilityJFM Joint Forest Management Committee

    MNRE Ministry of New and Renewable Energy

    NOC No Objection Certificate

    NPA Non-performing Asset

    NREGS National Rural Employment Guarantee Scheme

    IISc Indian Institute of Science, Bangalore

    IPP Independent Power Producer

    PPA Power Purchase Agreement

    RERC Rajasthan Electricity Regulatory Commission

    RREC Rajasthan Renewable Energy Corporation

    SBI State Bank of India

    SERC State Electricity Regulatory Commission

    SNA State Nodal Agency

    SU State Utility

    UNDP United Nations Development Programme

  • 7/30/2019 Energy Plantation 280911[1]

    5/25

    1 IntroductionMinistry of New And Renewable Energy (MNRE) is currently implementing a UNDP/GEF assisted project

    on Removal of Barriers to Biomass Power Generation in India. The key objective of the project is toaccelerate the adoption of environmentally sustainable biomass power technologies by removing the

    barriers indentified, thereby laying the foundation for the large scale commercialization of biomass

    power through increased access to financing. The project management cell established in the MNRE for

    implementation of the above project has retained services of M/s Dalkia Energy Service Ltd. (DESL), New

    Delhi for preparing a Road Map for Biomass Energy for accelerated development of different types of

    biomass energy projects and programs primarily in the rural areas.

    In order to accomplish the overall task, several primary studies were contemplated for which support is

    being provided by India office of Department for International Development (DFID), UK. The work

    carried out under the assignment and the balance tasks performed were reviewed in a meeting with

    Dfid and MNRE officials in a meeting chaired by Joint Secretary, MNRE on 18 th August, 2011. In the

    meeting, it was decided that the balance resources available under the Dfid mandate would be best

    utilised by:

    Carrying out a field study for developing better understanding the policy related hurdles indevelopment of energy plantation.

    Obtaining some more data for making a better quality recommendation report for addressingtariff related issues.

    Accordingly, DESL consultants have carried out further study of plantation related issues by undertaking

    a field study in the State of Rajasthan and interaction with few developers. These studies have beencarried out in the month of September, 2011.

    Similarly, lot more inputs have been obtained on tariff related issues from project developers. The tariff

    recommendation note has been revised accordingly and circulated separately.

    This report is being presented on energy plantation capturing the present development status, policy

    issues and hurdles and recommendations on policy simplification and implementation and targets for

    power capacity addition in the 12th plan period.

  • 7/30/2019 Energy Plantation 280911[1]

    6/25

  • 7/30/2019 Energy Plantation 280911[1]

    7/25

    Table 2: Energy plantation-Barriers & strategy

    Issue Present status Assessed barriers Present best

    practice

    Recommendation

    Policy and

    program

    administration

    There are two

    central policies and

    few State policies

    DLEC to administer

    Green India &

    Plantation whereas

    it is DWDU for

    water shed

    development

    Possible Implementation

    hurdles as there are

    different institutional

    arrangement and it is

    proposed to use same

    primary resource base for

    implementation

    None

    identified

    It is recommended that

    the same District Level

    Committee, DLEC is

    empowered to administer

    all the three programs-

    Water Shed development,

    Green India Mission and

    Energy Plantation and

    ensure optimum

    allocation of resources for

    best results overall.

    Nodal Agency Different in

    different States fordifferent schemes

    Multiple transaction

    processes

    Orissa-

    OREDARajasthan-

    RREC

    State Energy development

    Agencies

    Land

    identification

    Different methods

    in different States

    Time consumed in

    identifying

    Government/Panchayat

    land

    Parcel size

    Fencing & protection cost

    Orissa &

    Madhya

    Pradesh-

    District Level

    Committees

    are required

    to identify

    land

    State Nodal Agency to

    prepare a record of land

    bank based on

    identification done by

    DLEC

    Land allocation DLEC - DLEC DLEC-however, processneeds to be simplified to

    reduce the transaction

    time

    Use of private

    land

    Permitted in few

    States

    Not permitted in most of

    the States

    Land ceiling Act

    Tamil Nadu It should be permitted

    with livelihood safe guard

    for sellers

    Implementation JFM/Gram Sabha

    with budgetary

    support from

    NREG/Government

    schemes and

    technical inputs

    from Agricultural

    department/Power

    plant developers

    Exclusive use of

    local resources

    This is proving to be the

    biggest hurdle due to

    several reasons like:

    Non-formation of JFM Impediment in forming

    the JFM

    Non interest ofPanchayat/lack of

    motivation/conflict of

    interest-public vs.

    private benefits

    Non availability oflabour and non-

    allowance of

    mechanised farming

    Delay in getting uniquecode as the same is

    Water shed

    developmen

    t scheme-

    Selection of

    Project

    Implementat

    ion

    Agencies

    Tamil Nadu-

    Contract

    farming

    Two alternative schemes

    could be adopted:

    1. As provided in thewater shed

    development scheme

    2. DLEC/Panchayat totender for attracting

    private developers

    including the Power

    Plants-terms of

    tender can be

    designed for getting

    maximum benefits to

    the local community

    and faster

    development of

    waste land for

    sustainability of the

  • 7/30/2019 Energy Plantation 280911[1]

    8/25

    provided only as per an

    approved budget item-

    difficult to include

    project mid-stream.

    power plants

    3. Allowing contractfarming in private

    landFinancing Mainly from

    NREG/Partly from

    other running

    schemes like BRGF

    No scheme for private

    investment in

    developmental activities

    Bank finance not available

    due to allocation and

    development policy hurdles

    Finance for R&D for varietal

    development also not

    available

    None Inclusion of Energy

    Plantation under

    agriculture

    Developing credit

    enhancement scheme

    under MNRE patronage

    Development subsidy for

    few pilots

    Monitoring Not clear except for

    the Watershed

    development by

    District Planning

    Committee

    Remedial action in case of

    delay by JFM/Panchayat in

    starting and maintaining

    development work

    Watershed

    developmen

    t project

    DLEC to develop and

    implement a monitoring

    system

    3 Potential-Energy PlantationWasteland available in the country can be utilised for energy plantation as per the varietal suitability.

    Several studies have been carried out by different agencies at different points of time to assess the

    availability of wasteland and potential for growing plantation crop.

    Table 3: Availability of wasteland

    S. No. State

    Wasteland Area according to

    Biomass Atlas (Sq.

    Km)

    Wasteland Area according to Wasteland

    Atlas of India (Sq. Km)

    1 Kerala 81.00 2458.69

    2 Uttaranchal 121.00 12790.06

    3 West Bengal 327.00 1994.41

    4 Punjab 512.00 1019.50

    5 Orissa 545.00 16648.27

    6 Nagaland 649.00 4815.18

    7 Sikkim 701.00 3280.88

    8 Manipur 1902.00 7027.47

    9 Meghalaya 2169.00 3865.76

  • 7/30/2019 Energy Plantation 280911[1]

    9/25

    10 Haryana 2440.00 2347.05

    11 Tripura 2878.00 1315.17

    12 Bihar 4020.00 6841.09

    13 Mizoram 4480.00 6021.14

    14 Assam 6544.00 8778.02

    15 Tamil Nadu 6929.00 9125.56

    16 Himachal Pradesh 9012.00 22470.05

    17 Arunachal Pradesh 9226.00 5743.84

    18 Jharkhand 10827.00 11670.14

    19 Karnataka 15035.00 14438.12

    20 Uttar Pradesh 15555.00 10988.59

    21 Chhattisgarh 16925.00 11817.82

    22 Andhra Pradesh 27987.00 38788.22

    23 Jammu & Kashmir 68946.00 73754.38

    24 Madhya Pradesh 73290.00 40042.98

    25 Maharashtra 74386.00 38262.81

    26 Gujarat 77287.00 21350.38

    27 Rajasthan 109753.00 93689.47

    28 Goa NA 496.27

    29 Delhi NA 83.34

    30 Union Territory NA 337.30

    Total 542527.00 472261.96

  • 7/30/2019 Energy Plantation 280911[1]

    10/25

  • 7/30/2019 Energy Plantation 280911[1]

    11/25

  • 7/30/2019 Energy Plantation 280911[1]

    12/25

    The plantation potential for different States for the two generic varieties have been accordingly worked

    out and graphically shown below.

    Figure 2: Plantation potential low yield variety

    S. No.Classification of

    Wasteland in IndiaArea (Sq km)

    % to Total

    Wasteland

    Area

    Land

    suitable for

    Juliflora

    Plantation

    Land suitable for

    High Yield

    Plantation

    Remarks

    13 Degraded

    pastures/grazing la nd

    7196.44 1.52% No No -Land for pastures cannot be

    considered for energy

    plantation as it provides fodder

    14 Degraded land under

    plantation crops

    316.22 0.07% Yes Yes

    15 Sands- Riverine 2439.85 0.52% Yes Yes

    16 Sands- Coastal sand 719 0.15% Yes No High Yield Plantation cannot be

    grown in coastal s and

    17 Sands- Desert Sand 5280.07 1.12% Yes No High Yield Plantation cannot be

    grown in sa ndy soil

    18 Sa nds - Semi-s ta bilized

    to stabilized (>40m)

    dune

    11188.21 2.37% Yes No -Same as above

    19 Sa nds - Semi-s ta bilized

    to stabilized

    moderately high (15-

    40m dune

    15627.63 3.31% Yes No -Same as above

    20 Mining Wastelands 505.35 0.11% No No -Productive Soil is already

    eroded, hence cultivation is not

    possible

    21 Industrial wastelands 63.99 0.01% No No -As most of industrial land is

    private, it is difficult to get this

    land for plantation

    22 Barren rocky area 69373.92 14.69% Yes No High Yield Plantation requires

    min. 800mm rainfall and hence

    cannot be grown in barren and

    rocky area23 Snow cover and/or

    glacial area

    40694.8 8.62% No No Both these plantation cannot

    be grown in snow

  • 7/30/2019 Energy Plantation 280911[1]

    13/25

  • 7/30/2019 Energy Plantation 280911[1]

    14/25

  • 7/30/2019 Energy Plantation 280911[1]

    15/25

    Table 7: Bio-fuel plantation policy review

    State Nodal agency Land

    classification

    Land

    identification& allotment

    Allottees/allocation

    priority

    Mode of

    farming

    Orissa OREDA Barren &

    uncultivable;

    Boundary &

    fence of farms

    District level

    committee

    monitoring by

    task force

    Vanrakshan

    Samities on long

    term lease and self

    help groups

    JFM/Contract

    Madhya

    Pradesh

    MP Agro-

    industrial

    development

    board

    Non-forest

    wasteland

    District level

    committee

    under

    collector

    For allocation

    of land

  • 7/30/2019 Energy Plantation 280911[1]

    16/25

    Companies (OMC) would purchase bio-diesel across 20 procurement

    centres across the country to blend with high speed diesel w.e.f January

    2006. Purchase price set at Rs 26.5 per litre

    purchase price. No sale of bio-

    diesel.

    Self Sustaining Execution phase 2008 to 2012: Targeted to producesufficient biodiesel for 20 percent blending by end of 11

    th(2008-12) five

    year plan

    Lack of large scale plantations,seed collection and extraction

    infrastructure, buy-back

    arrangements, capacity and

    confidence building measures

    among farmers impeded the

    progress of this phase.

    Water shed development & Green India missions

    The Water shed development mission launched in 2008 and the Green India Mission launched in

    2011 have components for development of forestry through plantation.

    The watershed mission has proposed a multi-tier ridge to valley sequenced approach for projectdevelopment. In the upper reaches, which are mostly hilly and forested, the onus of implementation

    would mainly lie with the Forest Departments and the Joint Forest Management Committees (JFMC).

    The second tier is the intermediate tier or the slopes, which are just above the agricultural lands. In the

    intermediate slopes, the Watershed Management approach would address all the necessary issues by

    looking at all the best possible options including treatment, cropping pattern, horticulture, agro-forestry

    etc.

    As to the third level of the plains and the flat areas, where typically, the farmers are operating, there

    would be a large concentration of labour intensive works. The watershed development process would

    be synergized with the employment generating programmes such as the National Rural Employment

    Guarantee Scheme (NREGS), Backward Regions Grant Fund (BRGF) etc thus providing strong

    coordination.

    The institutional process involvement of multi-tier agencies for managing the various processes:

    District Watershed Development Unit (DWDU) for overall management at district level Watershed committees under Panchayat/Gram Sabhas for micro management Implementation by Voluntary Organisations (Project Implementation Agencies) Monitoring by District planning committee/State level nodal agencies

    The Green India Mission aims at addressing climate change by:

    Enhancing carbon sinks in sustainably managed forests and other ecosystems; Enhancing the resilience and ability of vulnerable species/ecosystems to adapt to the changing

    climate; and

    Enabling adaptation of forest dependant local communities in the face of climatic variabilityThe mission intends to cover additional 10 million Ha of wasteland under forest coverage. The

    development plan has adopted an integrated cross-sectoral approach including with rural energy

    development program.

    The project is proposed to be managed in a decentralised manner with total involvement of the local

    community.

    Local communities will be required to play a key role in project governance and implementation. Gram

    Sabha and its various committees/groups including JFMCs, CFM groups, Van Panchayats, etc. would be

    strengthened as institutions of decentralized forest governance. Likewise, the Mission would support

  • 7/30/2019 Energy Plantation 280911[1]

    17/25

    revamping/strengthening of the Forest Development Agencies. The Mission would support secured

    community tenure, capacity building for adaptive forest management and livelihood support activities

    e.g. community based NTFP enterprises5.

    Contract farming

    The system of contract farming with or without policy support has been in practice for long. Some of the

    States provide strong policy support for both land allocation and development. However, most of the

    States are sensitive about land allocation. Amongst the States having high potential for energy

    plantation, Gujarat, Rajasthan, Madhya Pradesh, Tamil Nadu and Orissa have established track record of

    having encouraged such developments. States in the North Eastern States have also responded

    positively to informal enquiries. Some States like Maharashtra and Karnataka are more sensitive about

    land matters6.

    The following table shows summary of some illustrative case studies.

    Table 9: Illustrative case studies-contract farming7

    State Name of the

    scheme

    Scheme in brief Targeted benefits

    Assam Area Development

    Scheme

    The Scheme envisages

    cultivation of Bamboo on

    wastelands.

    Farmers would be

    benefited in terms

    of production and income

    Bihar Basmati rice Assured procurement Crop grown through organic

    farming methods prescribed

    by it.

    Chattisgarh MSSL Mahindra

    Krishi Vihars

    Supply of quality inputs,

    technical guidance, and buyback of produce at pre decided

    price.

    Assured availability of

    quality produce in requiredquantities at pre decided

    rates

    Haryana TATA Kisan Sansar

    (TKS) through TATA

    Krishi Vikas Kendra

    (TKVK)

    Enhanced farm productivity &

    income

    i) Achievement of leadership

    by delivering value to

    agriculture

    ii) Social engineering

    through community service

    iii) Serving as a complete

    solution provider to farmers

    and building lastingrelationship

    Himachal

    Pradesh

    Himalayan

    International

    Limited Cultivation

    of 3 herbs

    Assured

    purchase of

    crop by the

    company at a prefixed price

    Assured supply

    Madhya

    Pradesh

    Reliance Life

    Science Ltd

    Purchase is affected through

    traders. No direct benefit to

    Availability of aromatic oils

    for export purposes

    5Draft mission document May 24, 2010

    6Report of Working Group of MNRE on Energy Plantation

    7State level policy document available in respective websites

  • 7/30/2019 Energy Plantation 280911[1]

    18/25

    aromatic oils farmers.

    Maharashtra S. H. Kelkar Group

    of Companies

    Patchouli (Aromaticoil plant)

    i) Availability of tissue culture

    planting material

    ii) Marketing facility by the

    company

    Availability of assured

    quality raw material

    Punjab Vardhaman led

    Consortium of

    spinning mills of

    North India & State

    Bank of Patiala

    Village

    Cluster adoption

    program

    Productivity of cotton increased

    from 4.6 quintals in 2002-03 to

    9.6 quintals per acre.

    ii) Expenditure reduced from

    Rs.7995 per acre in 2002- 03 to

    Rs. 7112 in 2003-04

    Increased production &

    hence better capacity

    utilization of plants &

    machinery.

    Policy for Energy Plantation

    Rajasthan is the 1st and only State so far to have declared a specific policy on Energy Plantation named

    policy for Promoting Generation of Electricity from Biomass, 2010.

    The salient features of the policy are:

    1. Eligibility-The facility under the policy would be available to power plants who intend to supply100% power to the Discoms.

    2. Permitted Land usea. Government/Common land

    i. Degraded forest land through JFM committeeii. Government waste land/barren land/saline land through concerned Gram

    Panchayat

    iii. Panchayat waste land/barren land/saline land through concerned GramPanchayat

    b. Private landi. Leasing of Khatedari land which is barren for upto 30 years without affecting

    the Khatedary rights of the Khatedar

    ii. Purchase of Khatedary land in access of ceiling limit as per Ceiling Act, 19733. Support from Agricultural department to develop plantation as agricultural activity4. Identification of land-By the eligible power plant promoter within the command area as per

    registration with RREC

    5. Maximum usage-500 Ha/MW6. Institutional process

    a. Institutions involved-RREC/ JFM/Gram Panchayat/District Collector/CEO ZilaParishad/DFO/ District level Empowered Committee (DLEC)/BDO/RERC

    b. Transaction processi. Approvals from:

    a) JFM/Gram Panchayat for land use

  • 7/30/2019 Energy Plantation 280911[1]

    19/25

    b) RREC (Recommendation to District Collector) for consideration by DLECc) District Collector/DFO for sanction by DLECd) DLEC for development

    ii. Tripartite development agreement-Gram Pnachayat/Zila Parishad (JFM forforest land) and Biomass Power Producer

    iii. The Zila Parishad to undertake development activities by Gram Panchayat/JFMCommittee through NREGS/other schemes of Zila Parishad

    iv. Biomass Power Developer/ Forest/Agricultural departments to provide supportto Gram Panchayat/JFM committee for the development work

    v. Gram Panchayat/JFM supplies the produce primarily to the biomass producers.Certain percentage of the produce may be kept reserved for bonafide domestic

    use

    vi.

    RREC prescribes the fuel cost for the power plantvii. DLEC determines the price of produce based on the cost so prescribed by RREC

    viii. Harvesting and logistics management from plantation site to the power plant tobe carried out by Power Plant Developer-the cost of the same would be fixed

    either on normative basis or as per tariff order from RERC

    Summary-Policy Review

    There are certain common features in all the above reviewed policies, which are relevant to

    development Energy Plantation. These are:

    1. Land use-Mainly barren and wasteland. In some cases use of private land is also permittedsubject to certain restrictive conditions.

    2. Quantum of land that can be used-In case of Rajasthan, which is the only State to have policy forenergy plantation, quantum of usage is restricted to 500 Ha/MW. As per yield record of existing

    farms, this would be able to support upto only 2 MW capacity.

    3. Approval process-Almost in all the cases, approval process is quite complex requiringinvolvement of agencies at different levels starting from village level to the DLEC. This may be

    desirable from the perspective of managing social issues. However, individual Biomass Power

    Developer may find the transaction process extremely time and cost consuming hampering the

    development process.

    4. Forest development-In all the cases, this is proposed to be carried out through Gram Panchayat/Gram Sabhas. Power Plant Developers practically would not have any management role in the

    development work.

    5 Energy Plantation-Case StudiesFew developers in the States of Tamil Nadu and Madhya Pradesh have developed high yield plantation

    under different models of development. Few existing Power Developers in the State of Rajasthan have

    initiated development activities as per the State policy.

  • 7/30/2019 Energy Plantation 280911[1]

    20/25

    Energy Plantation Projects India (EPPI)

    Energy Plantation Projects India (EPPI) has developed such farms under three separate models, outrightpurchase of fallow land from farmers, lease under shared revenue and lease under annual payment/acre

    (both for 15 years lease)8. The company has been able to develop over 350 acres of high yield plantation

    but have not succeeded in setting up the power plant due to financing difficulties.

    Initially difficulty was faced in getting the land-high cost was incurred in brokerage fee. However, after

    demonstration of the project viability, the company has succeeded in getting more parcels of land

    directly from farmers. The company had also faced difficulty in raising finance but was finally successful

    in getting the same from Indian Overseas Bank. Difficulties have also been faced due to stealing of plants

    as farmers do not agree to fencing as a preventive measure.

    In overall terms, this case has proven usefulness of private development so long State policy did not

    come in the way of the same. However, financing issues for both plantation and power plant have to be

    addressed.

    Some of the research & development institutes mainly in the private sector are working on the varietal

    development work on commercial scale. They are supporting development of plantation farms in India

    and abroad. Perusal of the costing data as shown in the following table indicates high viability of

    plantation options for sustainable operation of the biomass power plants.

    Table 10: Cost of energy plantation9

    Particulars Unit

    Variety

    Beema Vanasree Juliflora

    Different

    high yield

    Developer/Service

    provider Growmore EBTI Transtech EPPI

    Yield-Normal (10%

    moisture)(40%

    moisture) T/acre /yr 25-30 NA 125

    Yield max.(40%

    moisture) T/acre /yr 50 100 15 190

    GCV (10% moisture) Kcal/Kg 4000 4250 4000 4000

    Initial land

    development cost Rs lac/acre 1 0.9

    Solar fencing Rs/Meter 125

    Maintenance cost Rs/acre/yr 20000 18000

    Overall variable cost Rs/T 500 290 1100

    8EPPI website and field study.

    9Interaction with developers

  • 7/30/2019 Energy Plantation 280911[1]

    21/25

    Power yield KW/acre 5.6 11.8 1.7 15

    Land required Acre/MW 180 85 600 66

    However, issues of financing of power plants based on these models, particularly for larger power

    plants due to the following reasons:

    1. Uncertainty of development rights-during the contracted lease period/expiry of lease period2. Control over price particularly under shared revenue model3. Diversion of cultivable land-social tension4. Demonstrated sustainability of yield over long period

    Transtech Green Power Private Limited (TGPPL), Rajasthan

    Introduction

    This case pertains to an already established power project, which has not been able to sustain operation

    due to non-availability and higher price of biomass and unremunerative tariff allowed by RERC. On a

    short term basis, the company has been aggressively pursuing with all relevant authorities for tariff

    revision so that the project does not become NPA. As a long term strategy, the company has initiated

    action on investing in energy plantation as per policy of the State Government.

    Project particulars

    The project particulars are as shown in the following table.

    Table 11: Transtech biomass project particulars

    Description DetailsCapacity 12 MW

    Location Sanchor Tehsil, Jalore District

    Commissioning date 28th July, 2010

    Main fuel Juliaflora

    Auxiliary fuel Mustard residue

    Land identification

    As per policy of the Government, identification of land is to be carried out by the Power Project

    Developer. Accordingly, TGPPL constituted a project team to carry out extensive survey for identification

    of land covering both degraded forest land and barren Panchayat land.

    Details of availability of degraded forest land in the command area of power plant were obtained from

    the forest department. Assistance was sought from the forest department for clearer demarcation of

    available land. Informal assistance was got from the Ranger of the forest department based on which

    following three parcels of forest land as were identified.

  • 7/30/2019 Energy Plantation 280911[1]

    22/25

    Table 12: Forest land identified by TPPL

    Village Area in Ha

    Galifa Khar 100Hatimtai Jod, Khanpur Range, Bhinmal 200

    Jod Junjad 200

    The process was initiated in Jan, 2011 and completed by March 2011.

    About 1000 Ha of barren Panchayat land was also identified in the Village Galifa. As per requirement of

    the policy, TGPPL took steps necessary for getting NOC from the Panchayat. A Gram Sabha meeting was

    called in the village which was attended by over 100 members of the village. The meeting had been

    going on smoothly till one member raised objection about selling land to private power plant. Repeated

    efforts were made to explain the policy of the Government that there was no sale involved, that alldevelopment rights would remain with Panchayat, assistance that would be provided to Panchayat for

    forest development, availability of cooking fuel and other benefits and the obligation of Panchayat was

    to sign an agreement to sell the produce the Power Plant. However, soon the there was polarisation

    between members on political and social lines and finally the contra group prevailed and the proposal

    was rejected.

    Development work-degraded forest land

    Formation of Joint Forest Committee (JFM) & Obtaining NOC

    JFM usually comprises of a forest department employee (Ranger) and self help/social group from local

    population including women, SC/ST members and other villagers. The JFM is formally approved by DFO

    based on which the committee can open a Bank account, which is currently the only instrument

    providing legal back up for them to promote forest development as per policy.

    At the time of initiation of the project development work, there was no JFM in the project area. TGPPL

    undertook an awareness development and promotional campaign for formation of JFM and getting all

    the approval processed done. Necessary support was provided by the Forest department on voluntary

    basis.

    NOC is required from joint forest committee (JFM) for land allocation. Presently, there is no guidelinebased on which such NOC can be provided/rejected by JFM. It was therefore, necessary to spend

    considerable time in sensitising the members of the JFM about benefit from the plantation.

    The NOC was obtained from JFM on 31st

    March 2011

    RREC approval

    Immediately post obtaining the NOC from JFM, application for allocation of land was made to RREC.

    RREC forwarded their recommendation to District Collector (DC) on 20th April, 2011.

  • 7/30/2019 Energy Plantation 280911[1]

    23/25

    DLEC process

    DC approved the recommendation and advised DFO to call DLEC meeting for consideration of theproposal for approval. Normally DC, DFO, Revenue officer, Deputy Director Agricultural, District

    Transportation Officer, RREC are the members of DLEC. The project developer is the invite member of

    DLEC.

    The DLEC meeting was held on 2nd

    July 2011.

    During the meeting various issues including approval of land allocation and biomass prices as per policy

    of RREC were discussed and approved.

    The MOM was approved on 28th

    Aug 2011 and Power Plant developer was informed accordingly.

    Initiating the development work

    The development work has to be undertaken by JFM, which required it to undertake several activities in

    parallel:

    Obtaining the Unique code from the Block development Officer (BDO) Approval of Gram Panchayat for undertaking the development activities through NREGS/other

    schemes

    Getting local labour (Outside labour not permitted as per policy) and only manual method canbe deployed for plantation work

    The unique code was obtained on 14th September, 2011, practically 9 months after initiation of the

    land identification work and with almost day to day follow up work for expediting approval process at

    various ends.

    The plantation work could not be initiated planned for the rainy season as now hurdles are being faced

    in getting labour.

    6 Concluding recommendationFollowing conclusions can be drawn from the policy and case study analyses presented above.

    Plantation would provide the most attractive option for sustaining fuel supply to biomass powerplants at acceptable price level.

    There are quite a few commonalities amongst various programs on development of agro-forestry in wasteland, which can be synergised for accelerating development of biomass power

    There are many complex issues, as presented in the following table that need to be addressedthrough both Central and State level policy and program intervention.

  • 7/30/2019 Energy Plantation 280911[1]

    24/25

    Table 13: Policy recommendations

    Issue Present status Hurdles Present best

    practice

    Recommendation

    Policy and

    program

    administration

    There are two

    central policies and

    few State policies

    DLEC to administer

    Green India &

    Plantation whereas

    it is DWDU for

    water shed

    development

    Possible Implementation

    hurdles as there are

    different institutional

    arrangement and it is

    proposed to use same

    primary resource base for

    implementation

    None

    identified

    It is recommended that

    the same District Level

    Committee, DLEC is

    empowered to administer

    all the three programs-

    Water Shed development,

    Green India Mission and

    Energy Plantation and

    ensure optimum

    allocation of resources for

    best results overall.

    Nodal Agency Different in

    different States fordifferent schemes

    Multiple transaction

    processes

    Orissa-

    OREDARajasthan-

    RREC

    State Energy development

    Agencies

    Land

    identification

    Different methods

    in different States

    Time consumed in

    identifying

    Government/Panchayat

    land

    Parcel size

    Fencing & protection cost

    Orissa &

    Madhya

    Pradesh-

    District Level

    Committees

    are required

    to identify

    land

    State Nodal Agency to

    prepare a record of land

    bank based on

    identification done by

    DLEC

    Land allocation DLEC - DLEC DLEC-however, processneeds to be simplified to

    reduce the transaction

    time

    Use of private

    land

    Permitted in few

    States

    Not permitted in most of

    the States

    Land ceiling Act

    Tamil Nadu It should be permitted

    with livelihood safe guard

    for sellers

    Implementation JFM/Gram Sabha

    with budgetary

    support from

    NREG/Government

    schemes and

    technical inputs

    from Agricultural

    department/Power

    plant developers

    Exclusive use of

    local resources

    This is proving to be the

    biggest hurdle due to

    several reasons like:

    Non-formation of JFM Impediment in forming

    the JFM

    Non interest ofPanchayat/lack of

    motivation/conflict of

    interest-public vs.

    private benefits

    Non availability oflabour and non-

    allowance of

    mechanised farming

    Delay in getting uniquecode as the same is

    Water shed

    developmen

    t scheme-

    Selection of

    Project

    Implementat

    ion

    Agencies

    Tamil Nadu-

    Contract

    farming

    Two alternative schemes

    could be adopted:

    4. As provided in thewater shed

    development scheme

    5. DLEC/Panchayat totender for attracting

    private developers

    including the Power

    Plants-terms of

    tender can be

    designed for getting

    maximum benefits to

    the local community

    and faster

    development of

    waste land for

    sustainability of the

  • 7/30/2019 Energy Plantation 280911[1]

    25/25

    provided only as per an

    approved budget item-

    difficult to include

    project mid-stream.

    power plants

    6. Allowing contractfarming in private

    landFinancing Mainly from

    NREG/Partly from

    other running

    schemes like BRGF

    No scheme for private

    investment in

    developmental activities

    Bank finance not available

    due to allocation and

    development policy hurdles

    Finance for R&D for varietal

    development also not

    available

    None Inclusion of Energy

    Plantation under

    agriculture

    Developing credit

    enhancement scheme

    under MNRE patronage

    Development subsidy for

    few pilots

    Monitoring Not clear except for

    the Watershed

    development by

    District Planning

    Committee

    Remedial action in case of

    delay by JFM/Panchayat in

    starting and maintaining

    development work

    Watershed

    developmen

    t project

    DLEC to develop and

    implement a monitoring

    system