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BioCNG

INVESTING GREEN - A CASE FOR WASTE TO BIOCNG IN BENGALURU, INDIA

India is urbanizing rapidly with 31.6% of popula�on staying in urban areas as per Census 2011 data. This rapid urbaniza�on

has led to mul�ple urban management issues including waste management. As per India’s Second Biennial Update Report

to UNFCCC in 2018, Methane from solid waste disposal was 717 Gg. Thus, reducing the emissions from the waste sector

would be a significant step in achieving the NDC targets of India.

GGGI, through its mandate to promote green growth, had undertaken a dips�ck study in 2018 in three municipali�es of

Bhopal, Ghaziabad and Bengaluru to map and understand the solu�ons around organic wet waste management. Based on

the outcomes of the study followed by delibera�ons in the na�onal workshop, Compressed Biogas (CBG) also called as

BioCNG came out as the most promising op�on for managing organic wet waste in Municipali�es. In line with GGGI’s

‘Green Growth Strategy for Karnataka’ document, a detailed analysis was carried out for Bengaluru to commercialize the

CBG/BioCNG within the parameters of exis�ng regulatory, financial and technology op�ons.

I thank Royal Danish Embassy in India for their support for the study. This summary report captures the methodology,

mapping of exis�ng facili�es, financing op�ons, technology solu�ons and regulatory framework and suggests a way

forward for rolling out the BioCNG commercially in Bengaluru.

I am sure that the case of Banagaluru is replicable in mul�ple ci�es in Karnataka and in almost all the ci�es where City Gas

Distribu�on (CGD) network is proposed in India. The study clearly supports the case for a na�onwide rollout of

CBG/BioCNG based on organic wet waste in the smart ci�es as well as other municipali�es where CGD network is

proposed.

Shantanu Gotmare,

India Country Representa�ve, GGGI

Preface

INVESTING GREEN - A CASE FOR WASTE TO BIOCNG IN BENGALURU, INDIA01

1. Introduc�on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Prelude . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Objec�ve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

2. Assessment study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Overview of fruit and vegetable market waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Overview of the waste supply chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Overview of the exis�ng compost plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Overview of the exis�ng biogas plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Overview of the exis�ng sewage plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Overview of the exis�ng landfills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Overview of the exis�ng leaf-li�er processing unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Overview of the exis�ng organic waste converter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Market assessment of products and by-products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Ra�onale for commercializing CBG from waste in Bengaluru . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Landscape: Acts, Policies, Regula�ons, and Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3. Investment plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Project profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Proposed business models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Poten�al markets and loca�on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Assessment of technology op�ons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Review of financing op�ons. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Project implementa�on schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Financing analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

4. Way forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Assistance required from BBMP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Selec�on of private investor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

In summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Opportuni�es and scalability of the program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Table of Contents

Figure 1. Recommenda�on of the dips�ck study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04

Figure 2. Physical composi�on of MSW (Source:BBMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05

Figure 3: Select fruit and vegetable markets in BBMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Figure 4: Supply chain for waste management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

Figure 5: Exis�ng BBMP compost plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Figure 6: Exis�ng opera�onal biogas plants by BBMP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Figure 7: Exis�ng non-opera�onal biogas plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Figure 8: List of landfills set up by KRIDL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Figure 9: List of leaf li�er processing units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

List of Figures


Figure 10: List of organic waste converters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 09

Figure 11. Comparison of calorific values of different fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 12: Overview of products and by-products in a biogas plant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 13: Ra�onale for CBG as the main product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Figure 14: State-wise installed CBG capacity and plants as on Feb 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Figure 15: Applica�ons of CBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Figure 16: Planned CGD layout for Bengaluru city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 17. Share of vehicles registered in Bengaluru (numbers in lakhs), as on FY17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Figure 18: Various applica�ons and usages of carbon dioxide in the industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Figure 19: Physical composi�on of feedstock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Figure 20: Select key ini�a�ves under SBM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Figure 21. Business proposi�on and value created. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Figure 22. Possible Structure for the proposed project.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Figure 23: Stakeholders in a PPP transac�on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Figure 24. Detailed risk-sharing mechanism for the DBFOT PPP model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Figure 25: Financial parameters for evalua�on of business models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Figure 26: Procurement process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Figure 27: Key benefits of CBG projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Table 1: List of sewage plants set up by BWSSB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

Table 2: Comparison of biogas and CBG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table 3: BIS specifica�on for compressed biogas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table 4. Comparison of vehicle emissions (g/km) from various fuels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table 5. PNG demand from households in Bengaluru (realis�c scenario). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Table 6: Produc�on details of organic fer�lizer in Karnataka during FY17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Table 7. Plant overview (30 TPD Mahindra CBG plant). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 8: Indica�ve list of permits and licenses for se�ng up the Project in Karnataka . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 9: GST rates applicable to biogas plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 10: Evalua�on matrix for sugges�ng an ownership model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Table 11: Type of concessions in PPP transac�on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 12: Exis�ng financing op�ons for Biogas in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Table 13: Summary of NAMA fund (VI Call) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Table 14. Project implementa�on schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Table 15. Top 10 ci�es of India ranked by waste genera�on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

List of Tables


1. APMC Agricultural Products Marke�ng Commi�ee

2. BBMP Bruhat Bengaluru Mahanagara Palike

3. BOOT Build-Own-Operate-Transfer

4. BOT Build-Operate-Transfer

5. BWSSB Bengaluru Water Supply and Sewage Board

6. CBG Compressed Biogas

7. CFA Central Financial Assistance

8. CGD City Gas Distribu�on

9. CISS Capital Investment Subsidy Scheme

10. CNG Compressed Natural Gas

11. CPCB Central Pollu�on Control Board

12. DBFO Design-Build-Finance-Operate

13. DBFOO Design-Build-Finance-Own-Operate

14. DBFOOT Design-Build-Finance-Own-Operate-Transfer

15. DBFOT Design-Build-Finance-Operate-Transfer

16. DSCR Debt Service Coverage Ra�o

17. EIR Equity IRR

18. EOR Enhanced Oil Recovery

19. FDI Foreign Direct Investment

20. GAIL Gas Authority of India Limited

21. GBMA Greater Bengaluru Metropolitan Area

22. GGGI Global Green Growth Ins�tute

23. GOBAR-DHAN Galvanizing Organic Bio-Agro Resources Dhan

24. GST Goods & Services Tax

25. HOPCOMS Hor�cultural Producers' Coopera�ve Marke�ng and Processing Society

26. HRD High Rate Digester

27. IMC Indore Municipal Corpora�on

28. IOCL Indian Oil Corpora�on Ltd.

29. KCDC Karnataka Compost Development Corpora�on

30. KRIDL Karnataka Rural Infrastructure Development Limited

31. LPG Liquefied Petroleum Gas

32. MMT Million Metric Tonnes

33. MNRE Ministry of New and Renewable Energy

34. MoEF&CC Ministry of Environment, Forests & Climate Change

35. MSW Municipal Solid Wastes

36. NAP Na�onal Ac�on Plan

37. NGT Na�onal Green Tribunal

38. NPOF Na�onal Programme for Organic Farming

39. NPV Net Present Value

40. OWC Organic Waste Converters

41. PESO Petroleum and Explosives Safety Organisa�on

42. PIRR Project Internal Rate of Return

43. PPP Public Private Partnerships

44. PSA Pressure Swing Adsorp�on

45. RMC Regulated Marke�ng Commi�ees

46. RNG Renewable Natural Gas

47. SATAT Sustainable Alterna�ve Towards Affordable Transporta�on

48. SBM Swacch Bharat Mission

49. SCADA Supervisory Control and Data Acquisi�on

50. SPV Special Purpose Vehicle

51. TPD Tonnes per Day

52. UASB Upflow Aerobic Sludge Blanket

53. ULB Urban Local Bodies

List of Abbrevia�ons


Introduc�on

As per India’s Second Biennial Update Report to

UNFCCC in 2018, the waste sector contributed to 3% of

total GHG emissions in India. Methane from solid waste 1disposal was 717 Gg .The waste sector was dominated

by emissions from wastewater handling and solid waste

disposal. The quan�ty and composi�on of emission

mainly depends on the quan�ty of organic waste and

method of solid waste disposal. Indiscriminate disposal

of waste without treatment (segrega�on of organic

frac�on and genera�ng either energy or compost)

produces GHGs, thus contribu�ng to global warming.

Methane is produced during the anaerobic degrada�on

or breakdown of organic waste or carbon dioxide during

aerobic degrada�on or burning of waste. Thus reducing

the emissions from the waste sector could contribute in

achieving the NDC targets of India.

India is the second largest producer of fruits and 2vegetables . However, post-harvest losses in India stand

3at 40% , which is very high primarily because of low shelf

life and poor cold chain infrastructure. On a whole, more

than 600 millionmetric tonnes (MMT) of agricultural 4wastes are generated every year in the country ; most of

which goes as waste. On the other hand, India relies 5more than 80% on imports to meet its energy demand . A

solu�on that can address these twin problems of organic

waste and high energy import to provide alternate

source of the clean fuel is therefore highly desirable.

Prelude

G l o b a l G re e n G ro w t h I n s � t u t e (G G G I ) , a n

intergovernmental organiza�on of 30+ member

countries, was established in 2012 with an objec�ve of

promo�ng sustainable development for developing

1. h�ps://unfccc.int/sites/default/files/resource/INDIA%20SECON

D%20BUR%20High%20Res.pdf

2. h�p://pib.nic.in/newsite/PrintRelease.aspx?relid=174412

3. planningcommission.nic.in/reports/sereport/ser/stdy_esthor�.doc

4. Asokan P. Applica�on of coal combus�on residues for hazardous

waste management. Third Annual PhD, progress report. Indian

Ins�tute of Technology, Bombay, India. 2004

5. h�ps://www.reuters.com/ar�cle/us-india-oil-exclusive/exclusive-

indian-refiners-may-reduce-oil-imports-as-crude-prices-soar-

rupee-struggles-idUSKCN1M408G

countries including the least developed countries. GGGI

is dedicated to suppor�ng the crea�on and diffusion of

the model of economic growth known as "green growth",

a growth model that integrates economic growth,

environmental sustainability, poverty reduc�on, and

social inclusion. GGGI, following the mandate of

suppor�ng green growth ini�a�ves in India, along with

the integra�on of environmental sustainability with

economic and social development, is working to advance

climate resilience for sustained livelihoods.

GGGI, with financial grant assistance from the Royal

Danish Embassy, conducted a s tudy on the

commercializa�on of biogas produc�on u�lizing the

waste generated from fruit and vegetable markets in

municipal areas. A dips�ck study was first conducted

across Bhopal, Ghaziabad, and Bengaluru Municipali�es.

Following the dips�ck study, GGGI had conducted a

stakeholders’ consulta�on workshop at New Delhi in

January 2019 that had seen par�cipa�on from

Government, private investors, research ins�tu�ons,

interna�onal scien�sts, financing ins�tu�ons, etc. The

dips�ck study took a stock of the exis�ng waste

genera�on, segrega�on, use and disposal in the selected

ci�es. It also did a preliminary analysis on the value

proposi�on for the use of waste in the best possible

manner in exis�ng regulatory scenario. Based on the

analysis, field visitsand discussions in the workshop,

Compressed Biogas (CBG), also called as BioCNG, was

Figure 1. Recommenda�on of the dips�ck study

Classifica�on of Compressed Biogas (CBG) plants under agricultural industries

Avail Government benefits reserved for agricultural industries

Development of protocols/ standards for organic fer�lizers/ manure

Inclusion of CBG under priority sector lending of banks

Establishment of a single window clearance system

Policy support and marke�ng of by-products

Improvement in data collec�on and repor�ng for waste disposal

Ÿ To present the issues and gaps, which must be taken into

considera�on by public authori�es, investors and private

agencies that want to produce biogas from vegetable waste

at the municipality level,

Ÿ To arrive at adetailed investment plan integra�ng op�ons for

ac�on based on the inputs from the dips�ck study and report

of stakeholders’ workshop held in January 2019, and

Ÿ To iden�fy and present the areas for bilateral coopera�on/

interven�ons in the area of waste to energy with a special

focus on interna�onal markets.

found to be the best value-for-money proposi�on. In the

workshop, it was decided to further assess the

opportunity and prepare an investment plan for

u�lizing the waste generated from fruit and vegetable

markets. From the outcome of the dips�ck study,

Bengaluru emerged as the most preferred city fora

business case through a detailed assessment study and

investment plan for CBG/BioCNG from the vegetable

market waste.

Objec�ve

The study aims to prepare the business case for the

commercializa�on of biogas produc�on u�lizing the

waste generated from fruit and vegetable markets

under the jurisdic�on of Bruhat Bengaluru Mahanagara

Palike (BBMP). The objec�ves of the study are as

follows:


Why CBG/BioCNG?

Historically, biogas has mainly been used for cooking in rural

areas. Biogas as a fuel has been promoted in India for the last 3-4

decades, with almost 5 million family-type biogas plants based

on ca�le dung deployed in rural areas. Biogas was used for

ligh�ng, genera�ng electricity and fueling of pump sets for

irriga�on. However, grid-quality electricity genera�on from

biogas became unviable due to high cost compared to other

forms of energy like solar and wind.

Over the years, the poten�al to generate BioCNG by enriching

biogas was recognized and produc�on units were set up at an

industrial scale, using organic waste from domes�c and

industrial sources. A�er successfully developing and

demonsta�ng a high rate bio-methana�on with upgraded

technology at scale, BioCNG derived from biogas has proven to

be commercially viable.

Figure 2: Physical composi�on of MSW (Source: BBMP)

Context

In 2014, the Central Pollu�on Control Board (CPCB)

came up with a Na�onal Ac�on Plan (NAP) subsequent

to Na�onal Green Tribunal (NGT) order. The NAP

mandates all states and union territories to have

individual plans at their administerial levels and

recommends preven�on, minimiza�on, u�liza�on,

recycling and processing of waste along with waste-to-

energy ini�a�ves. As per the study conducted by

Ministry of Environment, Forest and Climate Change

(MoEF&CC) in 2016, the annual Municipal Solid Waste

(MSW) genera�on from urban areas in India is es�mated

to touch about 165 MMT by 2031 and about 436 MMT

by 2050.

The megaci�es have seen an increasing trend in the solid

waste footprint over the years in propor�on to the rising

trend of urbaniza�on. The Urban Local Bodies (ULBs) will

find it extremely challenging to treat this waste due to

limited land availability and low technology penetra�on

for scien�fic waste management.

In Bengaluru, BBMP is the administra�ve body for the

Greater Bengaluru Metropolitan Area (GBMA), spread

across ~800 square Kms. Geographically, BBMP’s area is

classified into 08 zones, 29 divisions, 60 sub-divisions,

and 198 wards. At present, BBMP area generates around 66,000 tonnes per day (TPD) of MSW and BBMP is

responsible for collec�ng, transpor�ng, processing and

disposing this waste. The fruit and vegetable market

waste, classified as ‘Ins�tu�onal waste’, has an annual

es�mated genera�on of 1,800 TPD. This study considers

just 5%~6% of this poten�al. The remaining may be

addressed in a phased manner.

5 h�ps://www.thenewsminute.com

Vegetable 30%

Organic23%

Plas�c12%

Paper9%

Grass/leaves/wood5%

Other21%


Based on the availability of the waste of about 200 TPD,

project capacity up to 50% of the available waste,i.e. 100

TPD was considered. This will help to mi�gate the risks

associated with quan�ty fluctua�ons of wastes on a daily

basis.

Figure 3: Select fruit and vegetable markets in BBMP

2. Assessment study

The assessment study is a combina�on of primary and

secondary study to understand the as-is scenario.

Overview of fruit and vegetable market

waste

Broadly, Government of Karnataka (GoK) manages the

fruit and vegetable markets through municipali�es,

Agriculture Produce Marke�ng Commi�ees (APMCs),

Regulated Marke�ng Commi�ees (RMCs)and

Hor�cultural Producers' Coopera�ve Marke�ng and

Processing Socie�es (HOPCOMS). The study covers 16

select large fruit and vegetable markets owned by BBMP,

APMC, and RMC, under the jurisdic�on of BBMP. Figure

3 gives an overview of waste genera�on in 07 such fruit

and vegetable markets having waste genera�on more

than 10 TPD. The ra�onale for selec�on of markets

having more than 10 TPD is to ensure full u�liza�on of

the compactors that can carry up to 8 – 10 TPD of waste

per trip.

BBMP area

Cluster 1(100 TPD)

Cluster 2(60 TPD)

Cluster 3(40 TPD)

KR market(60 TPD)

More market(30 TPD)

Madiwala market(25 TPD)

Kalasipalyammarket

(20 TPD)

Russel & Nalamarket

(30 TPD)

BanashankariMarket

(15 TPD)

BinnypetMarket

(20 TPD)

Overview of the waste supply chain

The supply chain for waste management includes the

(a) collec�on (b) compac�on and transporta�on and

(c) u�liza�on described in Figure 4.

There is a possibility to u�lize the current supply chain of

collec�on, compac�on, and transporta�on of waste with minor

modifica�on in the source-to-des�na�on mapping. In this

regard, BBMP may need to come up with a new source-to-

des�na�on mapping from the poten�al markets to the poten�al

project loca�on to ensure a steady supply of 100 TPD waste

from fruit and vegetable markets. This might require certain

modifica�ons in the contracts for the contractors handling such

waste.

Figure 4: Supply chain for waste management

Source: BBMP, based on discussions

Ÿ BBMP, APMC, RMC, HOPCOMS -

storing of waste by fruit and

vegetable sellers adjacent to their

own premises.

Ÿ Pourakarmikas / sanita�on workers

collect and transfer to the primary /

secondary transfer sta�ons, as per

the instruc�ons.

Collec�on of waste

Compac�on and Transporta�on

of waste

U�liza�on of waste

Ÿ Wastes are transferred mostly to

the 07 compost plants set up by

BBMP or to the landfill areas (in

case of rejected waste) or any other

areas for its u�liza�on.

Ÿ BBMP or private contractors appointed by BBMP/ APMC/ RMC and HOPCOMS (as applicable) are responsible for compac�on and transporta�on of waste to the secondary transfer sta�ons or des�na�on for its u�lizas�on, as per the instruc�ons.


Overview of the exis�ng compost plants

BBMP has invested inse�ng up 07 compost plants,

with total processing capaci�es for 2,300 TPD.

Although all the compost plants are opera�onal,

their designed capacity u�liza�on is very low. At

present, the wastes generated from fruit and

vegetable market reaches directly at the compost

plant or landfill areas (in case of rejected waste) or

for any other use, as per the instruc�ons from

BBMP.

U�liza�on of fruit and vegetable market waste can be

maximized, in terms of its economic value, if such wastes are

u�lized for the produc�on of CBG/BioCNG, instead of

compost or landfill or any other use as is being done currently.

In this regard, BBMP may think of u�lizing the waste from

fruits and vegetable markets for the produc�on of

CBG/BioCNG in order to maximize the economic value of

such waste.

Figure 5: Exis�ng BBMP compost plants


Co

mp

ost

pla

nts

set

up

by B

BM

P

LingadheeranahalliCapacity : 200 TPD

DoddabidarakalluCapacity : 200 TPD

KannahaliCapacity : 500 TPD

SeegahalliCapacity : 200 TPD

SubbarayanapalyaCapacity : 200 TPD

ChikkanagamangalaCapacity : 500 TPD

KCDC, KudluCapacity : 500 TPD

Land : 11 acresZone : East

Land : 09 acreaZone : Dasarahalli &

Yelahanka

Land : 23.75 acresZone: West

Land : 07 acresZone : RR Nagar

Land : 09.34 acresZone : Mahadevpura

Land : 15.30 acresZone : South

Land : 30 acresZone : Bommanahalli

Overview of the exis�ng biogas plants

BBMP has invested in se�ng up 13 biogas plants, each

having a capacity of 05 TPD which are used for street

ligh�ng.As per BBMP, the capital investment is about

INR 50 million and current O&M expenses of such plants

is about INR 1.80million per annum.

Figure 6: Exis�ng opera�onal biogas plants by BBMP


Bio

ga

s p

lan

ts s

et

up

by

BB

MP

(O

pe

ra�

on

al)

Kuvempu NagarInstalled Capacity: 05 TPD

Opera�ng Capacity: 4.5 TPD

O&M Contr.: Mailhem Engineers Pvt. Ltd.

Ward no.: 11

O&M Contr.: BBMP

Ward no.: 151

O&M Contr.: BBMP

Ward no.: 167

KoramangalaInstalled Capacity: 05 TPD


Jayanagara, LR ParkInstalled Capacity: 05 TPD


Three biogas plants are opera�ng at lower capaci�es vis-

à-vis their designed capaci�es (Figure 6). During this

study, the team visited the 05 TPD biogas plant at

Kuvempu Nagar. For comparison, visit was also carried to

the 30 TPD CBG plant set up by M/s. Mahindra and

Indore Municipal Corpora�on (IMC) of Madhya Pradesh.

10 out of 13 biogas plants set up by BBMP are not

func�oning at all, due to non-renewal of O&M

agreement and other opera�onal challenges. For the

revival of non-func�oning biogas plants, BBMP may

consider the following approach:

Ÿ Diagnos�c analysis to understand the issues related

to non-opera�on of the biogas plants including but

not limited to the status of availability of quan�ty &

quality of feedstock, the requirement for any

technological advancements, local challenges, rights

of way issues, other opera�onal challenges, etc.

Ÿ Revival strategy through quality feedstock

availability, contrac�ng out the O&M to private

operator through compe��ve bidding, �mely

payment to the O&M contractor and technological

advancement, if necessary.

Ÿ In case the revival is not found feasible, rehabilita�on

strategy through alternate use of land, sale of plant

and machinery, etc.

The biogas plants of BBMP are underu�l ized and

currently the electricity generated is used for street

ligh�ng purpose. The economic value of certain by-

products v i z . CO and organ ic fe r� l i ze r a re not 2

commercialized. In addi�on, the economic value of

biogas can be doubled, if u�lized for the produc�on of

CBG in lieu of electricity genera�on. In this regard,

BBMP may look for a new business model along with a

suitable risk-sharing framework.


Figure 7: Exis�ng non-opera�onal biogas plants


Bio

gas

pla

nts

(No

n-O

pera

tio

nal)

1. Ma�kere

Capacity: 05 TPD


Ward no.: 35

2. Gandhi Nagar

Capacity: 05 TPD


Ward no.: 94

3. K.R. Market

Capacity: 05 TPD

O&M Contr.: Ashoka-Biogreen Pvt. Ltd.

Ward no.: 139

4. Nagapura

Capacity: 05 TPD


Ward no.: 67

5. Begur, Gundutopu

Capacity: 05 TPD


Ward no.: 192

6. KCDC, Kudlu

Capacity: 05 TPD


Ward no.: 191

7. Domlur, Old airport

Capacity: 05 TPD


Ward no.: 112

8. Jayanagar

Capacity: 05 TPD


Ward no.: 168

9. Lingadeeranahalli

Capacity: 05 TPD


Ward no.: 198

10. Pana�ur, Varthur

Capacity: 05 TPD


Ward no.: 149

Overview of the exis�ng sewage plants

Bengaluru generates about 1,400 MLD wastewater and

Bengaluru Water Supply and Sewerage Board (BWSSB)

has invested in 14sewage plants, totaling a capacity of

721 MLD.

Overview of the exis�ng landfills

BBMP has iden�fied 03 abandoned quarries with a total

capacity of 1460 TPD, which are currently designated as

sanitary landfills. The landfill is planned to receive only

the following types of wastes –

Ÿ Mixed waste not found suitable for waste processing,

Ÿ Pre-processing and post-processing rejects from

waste processing sites, and

Ÿ Non-hazardous waste not being processed or

recycled.

Figure 8: List of landfills set up by KRIDL

The project is expected to receive all segregated waste from the

fruit and vegetable markets. The waste that cannot be u�lized in

the Project may be transferred to the above landfills or any other

landfill iden�fied from �me to �me.

The Project may re-u�lize the slurry, generated on a daily basis,

by mixing it with the input feedstock. Any excess slurry may be

transferred to the nearest sewage plants for wastewater

treatment.

Alterna�vely, in case of any shor�all in the input feedstock for

the project at any given day, the feedstock from the nearest

sewage plants (if in excess or as required) may be diverted to the

project for its u�liza�on.

SI. No. Sewage plant Capacity (MLD)

1 Vrishabhavathi Valley 180

2 K&C Valley 248

3 Hebbal Valley 60

4 Madiwala 04

5 Kempambudhi 01

6 Yelahanka 10

7 Mylasandra 75

8 Nagasandra 20

9 Jakkur 10

10 K. R. Puram 20

11 Kadabeesanahalli 50

12 Rajacanal 40

13 Cubbon Park 1.5

14 Lalbagh 1.5

Grand Total 721

Source: BWSSB

La

nd

fills

se

t u

p b

y K

RID

L

1. Bagalur village Capacity: 380 TPD

2. Mitaganahalli, Bidarahalli hobli

Capacity: 700 TPD

3. Bellahali village Capacity: 380 TPD

Table 1: List of sewage plants set up by BWSSB


Overview of the exis�ng leaf-li�er

processing unit

Leaf li�er is a large component of the waste retrieved

through street sweeping. With dense foliage along

several roads, this is es�mated to be a large propor�on of

street sweeping waste, especially in autumn and fall-

winter seasons. At present, BBMP has 04 units of varied

scales in the city.

Figure 9: List of leaf li�er processing units

Source: BBMP

The aim is to process the dry leaf li�er and garden waste

generated locally at a point in the neighborhood/ ward. This

waste has the poten�al to be converted into high-quality

compost that can be sold as manure.

Overview of the exis�ng organic waste

converter

As per BBMP, the city has 07 Organic Waste

Converters (OWC) and the tank-compos�ng unit,

which predominantly take the market waste and

waste from small hotels and restaurants for its

u�liza�on.

Le

af li

�e

r p

roce

ssin

g u

nit

s se

t u

p b

y

BB

MP

1. DECORA (Residents Associa�on), Defence

colonyEast zone

2. RWA, Koramangala 3rd

blockSouth zone

3. BBMP, Yediyur Lake park

South zone

4. BBMP, Jayanagara South zone

Figure 10: List of organic waste converters

Source: BBMP

OWC plants work on the principle of aerobic microbial

decomposi�on of wet/ organic waste into compost. This

biomechanical process produces a homogeneous odour free

output.

Lis

t o

f o

rga

nic

wa

ste

co

nv

ert

ers

1. Hasiru Dala, Malleshwaram

West zone

2. SAAHAS, Koramangala

South zone

3. BBMP, near ASP college

South zone

4. BBMP, near SSM school colony

South zone

5. Aruna Green Ventures Pvt. Ltd., Kalidasa layout

South zone

6. BBMP, Jayanagara South zone

7. SAAHAS, Doddanekundi

Mahadevapura zone

Market assessment of products and

by-products

Overview of biogas

The biogas technology is based on anaerobic

diges�on to convert organic wastes into usable

energy in the form of gaseous fuel. The gas thus

produced is a neat, combus�ble and pollu�on-free

fuel. The biogas produced as a result of anaerobic

diges�on mainly consists of Methane (CH ) and 4

Carbon Dioxide (CO ), with small quan��es of 2

Hydrogen Sulfide (H S), Ammonia and moisture. CH 2 4

content in the biogas is combus�ble and its calorific

value is equivalent to Compressed Natural Gas

(CNG), and thus can replace CNG use in automobile,

power genera�on, hea�ng, and other commercial

purposes. H S and Ammonia also have applica�ons 2

in industrial usage.


Table 2: Comparison of biogas and CBG

Sl. No Composi�on Biogas CBG

1 Methane 55% – 65% >90%

2 Carbon dioxide 30% – 40% <4%

3 Hydrogen sulfide 0.1 – 4% <16 ppm

4 Ammonia 0.1% ~0%

5 Nitrogen 3% <0.5%

6 Oxygen 0.1 – 2% <0.5%

7 Moisture 1 – 2% ~0%

Source: Praj Industries

The CH content of biogas is in the range of 55% – 4

65%. This provides a calorific value high enough to

find use in many industrial applica�ons.

Figure 11. Comparison of calorific

values of different fuels

The process of removal or extrac�on of the impuri�es

from biogas is known as purifica�on. Removal of all

impuri�es in the biogas par�cularly CO , H S and 2 2

ammonia would result in percentage increase in the

content of CH that enhances the quality of biogas 4

resul�ng in higher calorific value. A�er purifica�on, the

gas is compressed with the help of a compression system

to use in applica�ons for the automobile, gas, power

industries, etc. The purified and compressed biogas has

calorific values equivalent to natural gas and termed as

CBG.

Ra�onale for commercializing CBG from

waste in Bengaluru

Exis�ng technology op�ons give a poten�al to

produce nearly 3.8 TPD of CBG from 100 TPD

Figure 12: Overview of products and

by-products in a biogas plant

Products By-products

Biogas

CBG

Domes�c

Commercial

Automo�ve

Industrial

Electricity Heat

Carbon dioxide

Solid

Liquid

Gas

Digestate

Organic fer�lizer

Wastewater treatment

Compost

Soil amendment

Fiber

Fuel Brique�es /

Pellets

Livestock bedding etc.

5,500

9,350 9,600

25,350

10,000

20,000

30,000

Cal

ori

fic

Val

ue

(K

cal p

er

cub

ic m

ete

r)

Biogas Natural Gas

CBG LiquefiedPetroleum

Gas

vegetable and fruit waste generated at various

markets in Bengaluru (as indicated in Figure 3). High

O&M cost and small size of exis�ng 13 biogas plants

also indicate a need for opera�onal efficiency

through scale-up of the organic waste processing

facili�es to a commercially viable level. Addi�onally,

compost is found to be sub-op�mal u�liza�on of

organic wet waste due to its high moisture content

and low organic solid content.

Considering above factors, an alterna�ve approach

is proposed for se�ng up at least 100 TPD of

organic wet waste processing unit from wholesale

vegetable and fruit mandis to CBG/BioCNG. The

whole range of products as well as by-products is

detailed below.


CBG/BioCNG

With the Na�onal Policy on Biofuels - 2018 in place, the

much-needed fillip from Government of India (GoI) can be

witnessed. Public awareness of using clean fuels vis-à-vis

its benefits and cost efficiency has increased in recent

�mes. In addi�on, the Galvanizing Organic Bio-Agro

Resources Dhan (GOBAR-DHAN) scheme proposes to

cover 700 projects in the country to convert ca�le dung

and solid waste in farms to CBG and compost.

CBG/BioCNG is the purified form of biogas a�er removal

of all impuri�es including but not limited to CO , H S, and 2 2

Ammonia. It contains more than 90% pure CH and is 4

similar to the commercially available CNG in terms

chemical composi�on but with higher energy poten�al

(Figure 11). In terms of chemical composi�on, CNG and

CBG are similar, except that CNG contains higher

alkanes. In addi�on, CBG favorably compares with

Liquefied Petroleum Gas (LPG). In general, CBG/BioCNG

has the poten�al to directly replace CNG and LPG.

CBG/BioCNG is also called Renewable Natural Gas

(RNG) as it is a renewable source of energy produced

from biomass and is rela�vely free from CO . 2

CBG/BioCNG in India

As of Feb 2018, there are about 17 CBG plants

opera�onal in India, with an aggregate capacity of about

46,178 Kg per day. More than 96% of the exis�ng CBG

plants are located in the western and northern regions of

India. Such plants are located across 09 states, of which

Maharashtra has the largest capacity as well as the

highest number of CBG plants.

In July 2016, the Ministry of New and Renewable Energy

(MNRE) launched a program on energy from urban,

industrial and agricultural wastes/ residues, which aims to

promote se�ng up of projects for recovery of energy in the

form of biogas or CBG or enriched biogas from urban,

industrial, and agricultural wastes. MNRE provides central

financial assistance (CFA) of INR 40Million per 4,800 kg of

CBG per day generated from 12,000 cubic meters of biogas

per day, with a limita�on of maximum CFA at INR 100

Million per project.

Figure 14: State-wise installed

CBG capacity and plants as on Feb 2018

-

1

2

3

4

5

6

MH GJ UK RJ HR Others

No

of

CB

G p

lan

ts

2,000

Capacity (kg per day)16,659

12,538

5,460 4,024

2,050

5,447

5

2

13

2

4

kg

pe

r d

ay

Figure 13: Ra�onale for CBG as the main product

Technical standards

Ÿ As per the technical standards, CBG

meets IS 16087:2016 standards set

for CNG

Environmentfriendly

Ÿ CBG is carbon neutral and helps in

reducing global warming

Direct impact

Ÿ Direct replacement of CNG for

automo�ve purpose strengthening

the public transport facility and

automa�ve industry

Ÿ Direct replacement of LPG for

cooking purpose benefi�ng domes�c,

industrial and commercial facili�es

Mi�ga�ngthe foreign

exchange risks

Ÿ Reduces reliance on import of fuel,

mi�ga�ng foreign exchange risks.

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Source: Renewable Watch magazine (Note: MH – Maharashtra,

GJ – Gujarat, UK – U�arakhand, RJ – Rajasthan, HR - Haryana)

No of CBG plants

Figure 15: Applica�ons of CBG

CBG

Domes�c

Commercial

Automa�ve

Industrial

Households in urban/ village

areas for cooking

Hotels, resorts, food outlets,

canteens etc. for cooking

Public transport, commercial

private vehicles, personal vehicles for transportaion.

Cement, metal, galss, ceramic,

tex�le industries etc. for industrial

usage.


GAIL is also opera�ng at least 08 facili�es in Bengaluru

city located across Nelamangala, Doddabalapur,

Devanahalli, Hoskote, Bengaluru East, Bengaluru North,

Bengaluru South, and Anekal to cater to the vehicular

segment for the CNG needs. Oil and gas majors (GAIL,

BPCL, IOCL etc.) have plans to take CNG sales from

0.0345 tonnes (FY18) to 50 tonnes in the coming years

on company owned company operated (COCO) and/ or

joint venture (JV) models.

At present, the retail selling price of CNG in Bengaluru 7is around INR 58 per kg. The city needs government

policy interven�on that will mandate the use of CNG as

the fuel for public transport, freight, passenger

segments, and private vehicles. The revised master plan

for Bengaluru-2031 es�mates three �mes increase in

vehicles from the present numbers to about 21.02

lakhs (excluding two-wheelers). Though the number of

vehicles running on CNG as on April 2018 is 362

(according to Petroleum Planning & Analysis Cell, GoI), 8market es�mates put this around 1,000 as on April 2019.

Table 3: BIS specifica�on for CBG

Source: h�ps://www.gailgas.com/corporate/media/media-kit/

Bengaluru-Brochure.pdf

Characteris�c Requirement

CH in %,minimum 90%4

Only CO in %, maximum 4%2

(CO +N +O ) in %, maximum 10%2 2 2

O in %, maximum 0.5%2

3 3Total Sulfur (incl. H S)in mg/m , maximum 20 mg/m2

3 3Moisture in mg/m , maximum 5 mg/m

Source: SATAT Program EOI, MPNG

The commercial use of CBG in India shall meet IS

16087:2016 specifica�ons of BIS standards, as

men�oned in the below table.

Also, as per the specifica�ons, the following shall also be

met:

Ÿ CBG shall be free from liquids over the en�re range of

temperature and pressure encountered in storage

and dispensing system.

Ÿ The CBG shall be free from par�culate ma�er such as

dirt, dust, etc.

Ÿ CBG delivered shall be odorized similar to a level

found in local distribu�on (ref. IS 15319)

Jus�fica�on for CBG/BioCNG in

Bengaluru

GAIL Gas Limited (GAIL) is undertaking city gas

distribu�on (CGD) in Bengaluru. The project covers an

area of about 4,396 square kms and es�mates to benefit

a popula�on of 10.61 million in Bengaluru. GAIL has laid

2,684 inch-km pipeline for serving the domes�c

connec�ons over Bengaluru and targets to achieve a

domes�c connec�on of about0.13 million by 2020. At

present, GAIL is also serving about 22 industrial and

about 48 commercial customers. In addi�on, the

industrial areas like Peenya, Whitefield, Jigani, and

Bommasandra can offer significant CNG demand as per

the market informa�on. It is per�nent to men�on that

GAIL recently commenced gas supply in Bommasandra.

In FY18, GAIL had collaborated with Uber taxi to supply

03 months of free gas to the enrolled driver partners to

enable such vehicles to switch into CNG.

Figure 16: Planned CGD layout for Bengaluru city

7. GAIL

8. h�ps://�mesofindia.india�mes.com/city/bengaluru/cng-vehicles-

c ro s s - 1 k- i n - b e n g a l u r u - 1 2 - m o re - s t a � o n s - by - m o nt h -

end/ar�cleshow/68709916.cms


9As on Mar 2019, 80.49 lakh vehicles are registered in

Bengaluru metropolitan city, of which 55.88 lakhs are

two-wheelers. Many car manufacturers have

announced their decisions to phase out diesel and

petrol vehicles and may step up the manufacturing of

electric vehicles and/ or CNG vehicles. As permi�ed by

the Ministry of Road Transport and Highways, GoI, CBG

for motor vehicles may be used as an alterna�ve to

CNG.

With India shi�ing towards Bharat Stage VI emission

standards, cleaner fuels will be needed and use of

CBG in CNG vehicles may witness an increase in the

demand.

Figure 17. Share of vehicles registered in Bengaluru

(numbers in lakhs), as on FY17

Table 4. Comparison of vehicle emissions (g/km)

from various fuels.

9. h�p://transport.karnataka.gov.in/uploads/no�ce/Ban_Mar_19.pdf

Fuel CO Hydrocarbon NOx Suspended

par�cles

Diesel 0.2 0.4 9.73 0.1

CNG 0.4 0.6 1.1 0.22

Biogas 0.08 0.35 5.4 0.5

Bio-CNG 0.02 0.12 0.48 0.1

Source: Transport Department, GoK and PwC analysis

As per the market study, the vehicles that run on CNG can be 10switched to CBG . In addi�on, the exis�ng petrol and diesel

vehicles may be retrofi�ed to use CBG/BioCNG. The use of

CBG as a fuel in vehicles is environment-friendly as the

emissions are considerably reduced. The CNG conversion can

be made with an es�mated cost (indica�ve one) of about INR

28,000 for cars, INR 24,000 for two-wheelers and INR 1125,000 for auto rickshaws . As per MNRE, daily output of 05

TPD CBG produc�on can power about 70 buses (70 kg per fill)

or 500 cars (10 kg per fill) or 800 rickshaws (06 kg per fill). CBG

can also be bo�led and used for domes�c, commercial and

industrial applica�ons.

There are already 22 industrial and 48 commercial CNG

connec�ons, which are being served by GAIL. The

demand from these customers are over and above the

demand calculated in Table 5. As per Petroleum

Planning & Analysis Cell, GoI, the LPG sales in

Karnataka (FY18) is 1,574,000 MT with a per capita

consump�on of 25.7 kg per annum. Assuming the

popula�on of Bengaluru city as 10 million, this

translates to a demand of 0.257 tonnes of LPG per

annum.

Table 5. PNG demand from households

in Bengaluru (realis�c scenario).

10. Vide Gaze�e No�fica�on no. 395 dated 16th June 2015, Ministry

of Road Transport and Highways, Government of India

11. h�ps://�mesofindia.india�mes.com/city/bengaluru/cng-vehicles-

c ro s s - 1 k- i n - b e n g a l u r u - 1 2 - m o re - s t a � o n s - by - m o nt h -

end/ar�cleshow/68709916.cms

Par�culars Unit Legend Fy20

1Number of connec�on No. A 131,000

Net weight of LPG fuel 2

in LPG cylinder Kg B 14.2

Equivalent CNG volume SCM C = B*1.164 16.53

Average LPG cylinder

cycle Months D 1.5

Number of cylinders

required in a year No. E=12/D 8

Equivalent annual CNG

volume per connec�on SCM F=E*C 132.23

Annual demand – CNG SCM G=F*A 17,322,182

Source: PwC analysis

Digestate/Slurry

The digestate/slurry from CBG plant may be

commercially used for producing organic fer�lizer,

OtherVehicles0.49, 2%

NonTransport(excludingTwoWheelers),14.34, 68%

Buses, 0.43, 2%

Taxies,1.41, 7%

Lightgoodsvehicles,1.23, 6%

TransportVehicles,1.06, 5%

LMV(Passenger),2.06, 10%


compost and/ or biomass brique�es, as men�oned

below:

Organic fer�lizer

Liquid residues from biogas produc�on can be used as

organic fer�lizer thus replacing the mineral fer�lizer. The

actual produc�on of all fer�lizer in India for FY17 was 12414.41 LMT and the es�mate for FY18 from public,

private and co-opera�ve sectors is pegged at 462.20

LMT . In FY17, Karnataka had a produc�on of 31,553 MT 13(carrier-based) and 993 KL (liquid-based) . At present,

Karnataka has a monthly demand of around 2.40 LMT

mineral fer�lizer.

12. Department of Fer�lizers, GoI

13. Na�onal Council for Organic Fer�lizer

Table 6: Produc�on of organic fer�lizer

in Karnataka during FY17

Par�culars Carrier Base (MT) Liquid Base (KL)

Capacity 468,62 2,589

Azoto Bacter 2,760 52

Azospirillium 4,067 419

Rhizobium 2,241 91

PSB 18,329 192

KMB 1,489 103

ZSB 1,227 48

VAM 607 -

Acetob Acter 70 -

NPK Consor�um 599 86

Others 160 2

Total 31,553 993

Source: NCOF

GoI, through NABARD, is providing financial assistance

through the Na�onal Project on Organic Farming

(NPOF), under Capital Investment Subsidy Scheme

(CISS), to the various central government, state

g o v e r n m e n t , n o n - g o v e r n m e n t a n d p r i v a t e

entrepreneurs with an inten�on to boost the produc�on

from organic ma�er. Such financial assistance is at the

rate of 33% of total financial outlay, limited to INR 63

lakh for se�ng up of fruits, vegetable, and agro-waste

compost produc�on unit of 100 TPD input capacity. The

above financial assistance is applicable to municipali�es,

APMCs, public sector, private sector, companies,

fer�lizer companies or any individual entrepreneurs. In

addi�on, the financial assistance for se�ng up of state-

of-the-art liquid, carrier-based organic fer�lizer, bio-

pes�cide with the produc�on unit of 200 TPA capacity is

to the tune of 25% of total financial outlay, limited to INR

40 lakh. The above financial assistance is applicable to

public sector/ coopera�ve/ private sector companies,

small agencies/ Non-profit Organiza�on (NGOs) and

Individual entrepreneurs. The above scheme was in force

un�l FY17 and not in force for FY20. However,

Karnataka can ask for special dispensa�on.

Ministry of Petroleum and Natural Gas, GoI, vide its

no�fica�on dated 20 May 2015, approved the pooling of gas

with re-gasified Liquified Natural Gas (R-LNG) for

manufacturing of urea. In this regard, GAIL is designated as a

pool operator at the na�onal level. Department of Fer�lizer,

GoI es�mated the increase in demand of urea to 36.8 million

tonnes by FY22. In India, it is es�mated that on an average 14~25.99 MMBTU (~655 SCM) of natural gas is required to

produce 01 MT of urea.

Compost

Karnataka Compost Development Corpora�on (KCDC)

is opera�ng majority of the compost facili�es in 15Bengaluru city. KCDC has developed a market demand

and is supplying compost within various parts of the

state. At present, BBMP has invested in 07 compost

plants with a designed capacity of 2,300 TPD which are

opera�ng at an average of 29% of their capacity and the

compost produc�on is to the tune of 660 TPD. At

present, the compost is sold at INR 1.60 per kg including

a subsidy of 50% (INR 0.80 per kg) received from GoK.

Biomass brique�e

Surplus dry biogas slurry from Project can be converted

to brique�es. Biomass brique�e is a high-density solid

biofuel made by compressing solid organic material,

which is a subs�tute for coal and charcoal. It has a

calorific value of about 3,000 – 5,000 kcal per kg and the

low moisture content ensures complete combus�on.

Brique�es have much lower ash content (02 – 10% as

compared to 20 – 40% in coal). Brique�es help in the

15. h�p://fert.nic.in/node/5487

16. KCDC is also opera�ng B2C mode by supplying directly to the

farmers. However, the city compost is not being enhanced to the

vermi-compost levels and being sold.

Typical process flow chart for organic waste based biogas plant with bio-methane recovery plant and CO2 recovery system

Input (Feedstock)

Sor�ng table

Inlet chamber

Recycle chamber

Sludge holding tank

To sludge dry bed for obtaining organic fer�lizer

Biogas digester

1

2

Flare

5


Biogas storage unit

Biogas scrubber

Impuri�es (H S, 2

ammonia) removal

Membrane unit

Membrane separated CO2

3

Biogas blower

4

Gas recovery tank

Moisture trap

Refrigera�on unit

Ac�vate carbon filter

CO compressor2

Ac�vate carbon filter Biogas compressor

Recovery of pure methane

6 7

Co storage tank2

Liquid CO2

Bio-CNG main plant

Bio-CNG balance of plant

Typical process flow chart for organic waste based biogas plant with bio-methane recovery plant and CO recovery system2


Figure 18: Various applica�ons and usages

of carbon dioxide in the industry

Ÿ Chemical produc�on

Ÿ Refrigera�on systems, welding System - CO is a 2

shield gas

Ÿ Metal Industry - cas�ng molds to enhance their

hardness

Ÿ Fire Ex�nguishers

Ÿ Rubber and Plas�cs - dry ice is used to remove

flashes from rubber objects

Industrial Applica�ons

Ÿ CO gas is used to make urea (used as a fer�lizer 2

and in automobile systems and medicine),

methanol, inorganic and organic carbonates,

polyurethanes and sodium salicylate. CO is 2

combined with epoxides to create plas�cs and

polymers. It is used for water treatment; to keep

food cool (as dry ice); and to cool, pressurize and

purge equipment.

Pharma and Chemical

Ÿ Semiconductor devices

Electronics

Ÿ CO gas is used in enhanced oil recovery (EOR). 2

EOR is a class of techniques for increasing the

quan�ty of extracted crude oil from oil fields.

Carbon dioxide is injected under high pressure

into an oil reservoir, which pushes the oil through

pipes and up to the surface of the ground. CO gas 2

injec�on aids oil recovery and reduces the

viscosity of recovered oil

Oil Industry

Ÿ Liquid or solid CO is used for quick freezing, 2

surface freezing, chilling and refrigera�on in the

transport of foods.

Ÿ Carbonated Drinks

Ÿ In cryogenic tunnel and spiral freezers, high

pressure liquid CO is injected through nozzles that 2

convert it to a mixture of CO gas and dry ice "snow" 2

that covers the surface of the food product.

Food and Beverages


reduc�on of fossil fuel consump�on and industrial agro-

wastes. Further, there is a significant reduc�on in

greenhouse gases by using biomass brique�es. As per

the market informa�on, biomass brique�es are sold

in the price range ofINR 3,000 – 3,500 per tonnes in 16India . Around 20,000 tonnes of biomass brique�es

are consumed annually by the tobacco companies in

Karnataka and 50,000 tonnes of brique�es by the tea

industry in Tamil Nadu. In addi�on, brique�es are

used in Boilers, Furnaces, and Foundries in the

following industries:

Ÿ Processing industries (tex�le, steel rolling, brick kilns),

Ÿ Food industries (dis�lleries, milk plant, cooking, and

water hea�ng),

Ÿ Agro-based industries (tea leaf processing, rubber

molding), and

Ÿ Pharmaceu�cal and chemical industries.

Carbon Dioxide (CO )2

Biogas contains around 40% of CO that needs to be 2

removed during purifica�on and enrichment process.

CO is an odorless (at very low concentra�ons), 2

colorless, and greenhouse gas that is stable at room

temperature. The CO gas is 1.5 �mes as heavy as air, 2

thus if released to the air it will concentrate at low

eleva�ons, thus causing harm to the environment. CO 2

is formed either by combus�on or by biological

processes, which includes decomposi�on of organic

material, fermenta�on, and diges�on. Producing CO 2

as a commercial product requires it to be recovered and

purified from a rela�vely high-volume and CO -rich gas 2

stream. Gaseous or liquid CO , stored under pressure, 2

will form dry ice through an auto-refrigera�on process

if rapidly depressurized. Further, CO will form dry ice 2

at -78.5ºC (-109.3º F). One kg of dry ice has the cooling

capacity of two kg of ordinary ice. CO is commercially 2

available as high-pressure cylinder gas, rela�vely low

pressure (about 300 psi or 20 bar (g)) refrigerated

liquid, or as dry ice. Large quan��es are produced and

consumed at industrial sites making fer�lizers, plas�cs

and rubber.

16. Indiamart


Ÿ Name of the Plant: Mahindra CBG plant

Ÿ Loca�on: I.D.A Scheme No.59, Amitesh Nagar, Krishi Mandi, Indore, Madhya Pradesh 452012

Ÿ Opera�onal Model: The Indore Municipal Corpora�on (IMC) is responsible for providing land, ini�al capital

expenditure, ini�al electricity infrastructure, and M/s Mahindra arranges water, feedstock availability,along with

technology , specialized manpower, licenses. This plant is developed through a public-private partnership model.

Ÿ Availability of feedstock:The feedstock contains fruits, vegetables, and food waste from hotels, social gatherings,

func�on halls, etc.

Case in point: 30 TPD Mahindra CBG plant

Figure 19: Physical composi�on of feedstock

Fruit and vegatable

Ÿ Choithram Mandi through IMC

vehicles

Food waste from hotels,

social gatherings,

func�on halls etc.

Ÿ Nominated person of IMC responsible

for coordina�on and finally deliver the

feedstock to plant through IMC

vehicles free of cost.

Table 7. Plant overview (30 TPD Mahindra CBG plant).

Parameters Requirement

Land 02 acres of land covered with boundary wall and gates provided by IMC

Ini�al investment INR 72 Million invested by IMC

Electricity Infrastructure IMCprovided the basic electrical infrastructure up to transformer level

Water Availability Groundwater ensured by IMC

Other Infrastructure Connec�ng roads to plant provided by IMC

Specialized Manpower Responsibility of M/s. Mahindra

Technology and machinery Responsibility of M/s. Mahindra

Permits and licenses M/s Mahindra acquired licenses from

• Goods and Service Tax (GST)

• Income Tax (PAN)

• Factory License

• Electricity Department

• Health and Safety Department

• Pollu�on Control Board

• Petroleum and explosive department: Collector gets no objec�on cer�ficate (NOC) from 11

different departments. A�er receiving of NOC from these departments; Collector issues the final

license. In the case of Indore, NOC from the following 07 different departments:

• Public Works Department (PWD)

• Fire Department

• Nagar Parishad, Office in Bhopal

• Municipal Corpora�on

• Revenue Department

• Electricity Department

• Town and country planning

Ÿ Plant overview:

Plant Output and its o�ake: The plant produced CBG on an average of 700 – 850 kg per day. It is used to refuel city buses owned by the Madhya

Pradesh Transporta�on Department.On an average 08 buses are refueled with 60 – 70 kg per bus per day. In addi�on, the cylinders are filled and

supplied to Indian Ins�tute of Management (IIM) Indore, nearby hotels for cooking purpose, etc. through a third-party contractor. The plant also

produces organic fer�lizer of about 03 tonnes per day.


Landscape for acts, policies, regula�ons,

and programs

The sec�on below provides an overview of various acts,

policies, regula�ons, and programs in rela�on to the

biogas projects in India:

Na�onal Policy on Biofuels - 2018

Ministry of Petroleum and Natural Gas (MoPNG)

introduced the Na�onal Policy on Biofuels - 2018 to

promote advance bio-fuels including CBG in the country.

GoI extended certain provisions including differen�al

pricing to further incen�vize the sector in addi�on to

making available ‘Viability Gap Funding’ (VGF) and other

incen�ves. At present, the Working Group on biofuels,

set up under this program, is in the process of finalizing a

pan-India pricing model for CBG.

Sustainable Alterna�ve Towards Affordable

Transporta�on (SATAT)

MoPNG and Ministry of Skill Development and

Entrepreneurship introduced SATAT program in October

2018. The program is aimed at providing a developmental

effort that would benefit both vehicle users as well as

farmers and entrepreneurs. Under this ini�a�ve, MoPNG

aims to establish 5,000 CBG plants in the country in a

phased manner, with 250 plants by 2020, 1,000 plants by

2022 and 5,000 plants by 2025. These plants are expected

to produce 15 MMT of CBG per annum, which is about 40%

of the CNG consump�on of 44 MMT per annum in India as

of Sep 2018. This will a�ract investment to the tune of INR

1.7 lakh crore and expected to generate direct employment

for 75,000 people and produce 50 MMT of bio-manure for

crops.

Under SATAT program, the o�ake is guaranteed by the OMCs at

INR 46 per kg (plus GST of INR 2.30 per kg) for a period of 03

years (2018-2021) a�er which the price will be reviewed.

MNRE – Energy from Urban, Industrial and

Agricultural Wastes/ Residues

MNRE is providing support for the produc�on of energy

from urban, industrial and agricultural wastes/ residues

program for the plan period from July 2018 – March 2021.

This program promotes the recovery of energy in the form

of biogas, CNG, CBG, enriched biogas, energy from urban,

industrial, and agricultural wastes and cap�ve power and

thermal use through gasifica�on in industries.

Swachh Bharat Mission (SBM)

SBM was launched in 2014, with the aim of increasing

cleanliness in urban and rural areas of India. One of the

primary objec�ves of the mission is to improve solid and

liquid waste management in both rural and urban areas

and the introduc�on of modern and scien�fic methods

for MSW management.

A central financial assistance (CFA) of INR 40 Million per 4,800

kg of CBG per day generated from 12,000 cubic meters of

biogas per day has been announced, with a limita�on of

maximum CFA at INR 100 Millionper project.

Figure 20: Select key ini�a�ves under SBM

SBM has led to a pragma�c shi� in the MSW

management landscape of India. Under this mission,

greater emphasis is given to the collec�on, segrega�on

and safe disposal of household garbage.

Under Swachh Bharat Mission, financial assistance up to 35% is

provided to states for collec�on, segrega�on, compac�on,

transporta�on and safe disposal of MSW.

The Auto Fuel Policy, 2003

The Auto Fuel Policy, 2003 was launched with the aim of

addressing issues of vehicular emissions and vehicular

technologies by applying fuel quality standards.

Subsequently, it was further revised to The Auto Fuel

Vision and Policy 2025 with the introduc�on of more

stringent fuel quality and emission standards.

The Auto Fuel Vision and Policy 2025 promote the use of

alterna�ve fuels and encourages the switch over from liquid fuel

to CBG/CNG. The policy proposes lower road tax for vehicles using

CBG/CNG apart from encouraging tax incen�ves/disincen�ves

and subsidies for alterna�ve fuel including CBG/ CNG.

Har Din do Bin was launched on June 5th 2017 with the aim of

achieving 100% Segrega�on at source.

In July 2017,the environment ministry has given all solid waste

management projects a blanket exemp�on from taking prior

environmental clearances.

Introduc�on of star ra�ng protocol of garbage free ci�es by Ministry

of Housing and Urban Affairs (MoHUA). The main idea behind this

ra�ng system is to create holis�c evalua�on system for the en�re

solid waste management (SWM) value chain. The cleanliness

indicators for the ra�ng system include door-to-door collec�on,

bulk generator compliance, segrega�on at source, sweeping,

scien�fic waste processing, scien�fic landfilling and construc�on

and demoli�on waste management, user fees, penal�es, spot fines

for li�ering and enforcement of ban on plas�c.

3. Investment plan

Project profile

There is an immediate opportunity for the development

of a 100 TPD CBG plant (“Project”), based on the

availability of fruit and vegetable waste to the tune of

200 TPD within BBMP area. In the near future, this

CBG plant may further be scaled up with addi�onal

capacity of 50 TPD, once there is a stable availability

of more waste to the tune of another 100 TPD.


Permits, licenses, and approvals

Table 8: Indica�ve list of permits and licenses

for se�ng up the Project in Karnataka

SI. No. Agency name Zone

1. Approval for se�ng up Local Municipality Coopera�on

the project (BBMP)/Gram Panchayat

2. Capital subsidy Ministry of New & Renewable

Energy, Government of India

through Karnataka Renewable

Energy Development Limited

3. Change of Land Use Karnataka State Town

(CLU), if required Planning Board

4. Consent to establish Karnataka State Pollu�on

Control Board

5. Consent to operate Karnataka State Pollu�on

Control Board

6. Explosive substance Petroleum and Explosives

License Safety Organiza�on (PESO)

7. Cer�ficate of Ministry of Corporate Affairs

Incorpora�on of

Project SPV, if required

8. Factory License Indian Factories Act, 1948 from

Chief Inspector of Factories

9. Labour License Department of Labour

10. Gas supply agreement, GAIL/ IOCL/ HPCL/ other

if required OMCs

11. No Objec�on Cer�ficate Karnataka State Fire and

from Fire Department Emergency Services

12. No objec�on Karnataka Forest Department

cer�ficate for forest

clearances, if required

13. Cer�ficate of Department of Agriculture

Manufacture of Mixture

of Fer�lizers/

Micronutrient mixtures/

Bio-fer�lizers/ Organic

Manures, if required

One of the bo�lenecks with private investors is to obtain all the

permits, licenses and approvals. Hence, it is suggested that

BBMP take up the responsibility of suppor�ng all approvals

related to se�ng up the Project. This will improve the �melines

of project development.

O&M services contract 18%

All goods and organic

manure (other than pu�ng

in unit containers and

bearing a registered

Nil

brand name)

All goods including

animal or vegetable

fer�lizers or organic

fer�lizers put in unit

containers and bearing

5%

a brand name

CBG 5%

Liquid CO 18%2

Source: GST Act, 2017 and its amendments

The GST rates men�oned above are indica�ve in nature and the

investor needs to consider the latest no�fica�ons from GST

council and contract structuring, based on the advice from the

tax authori�es and advisors.

17. Circular No. 80/54 /2018-GST dated 31 Dec 2018 by Department

of Revenue, Ministry of Finance, GoI

Figure 21. Business proposi�on and value created

Table 9: GST rates applicable to biogas plants

Products GST Rates

• Supply of goods falling under

EPC contract

17chapter 84, 85 and 94: 5%

• Other supply items: GST rates,

as per the HSN codes

• Civil: 18%

• Services: 18%

Goods and Services Tax 2017 (GST)

CO capture,2

first of itskind in

India on a commercial

scale

Zero Discharge

CircularEconomy

100% wasteu�liza�on

State-of-the-arttechnology

En�re valuechain captured.

BioCNG, organicfer�lizer andwastewater

Proposed business models

In the context of Karnataka, BBMP has set up 13 biogas

plants of which 10 biogas plants are not in opera�on at

present. Further, there are certain private players who

have invested and set up plants that are either not

opera�ng since a long �me or opera�ng with lower

u�liza�on coupled with issued related to the

management of feedstock on a daily basis. As per the

discussions with the responsible stakeholders, it is learnt

that the government faces difficul�es in monitoring the

opera�ons of the plants on a daily basis and consistently

managing the payments for carrying out O&M of the

plant for a longer tenure. On the other hand, the private

player faces issues in managing the transporta�on of

stable feedstock on a daily basis and securing long-term

agreement to manage the revenue stream.

In order to understand the current issues plaguing biogas

industry and suggest a robust business model, the

evalua�on matrix described in Table 12 was used.

It is recommended that the ownership structure may not

be purely Government-owned or privately owned due to

the above ra�onale provided against each of the

parameters in the evalua�on matrix (Table 10).

Combining the strengths of the par�es through a PPP

model is suggested as it will ensure be�er risk alloca�on

within the par�es. In the next sec�on, the PPP

framework proposed for the CBG project is detailed out.

Table 10: Evalua�on matrix for sugges�ng an ownership model

Parameters Government Private (BBMP) investor Strength area Strength area

Segrega�on at source (fruits and

vegetable markets)

PFeedstock handling management (Collec�on, Compac�on, and transporta�on)

Land acquisi�on/ leasing for se�ng up the project

Securing government/ statutory

approvals

Financing for the project

P

P

P

P

Managing the EPC contractor P

Managing the O&M Contractor P

Monitoring of O&M ac�vi�es PEnsuring long-term agreements

on a B2B basis for o�ake of

the products and by-products PP

Incremental revenue realiza�on

by reaching out to retail markets P


P

A public-private partnership (PPP) is a contractual

arrangement between the Government and a private

en�ty. Through this agreement, the government and

private en��es share the skills and assets in delivering a

service or facility for the use of the public.

Figure 22. Possible Structure for the proposed project.

Possible structure for se�ng up the Project

Government owned

Private owned

Public private partnership (PPP)

Figure 23: Stakeholders in a PPP transac�on

Public

Private Lender

Govt.

In this regard, the details of the above en��es involved in

the PPP transac�on is men�oned below:

Ÿ Government: BBMP will represent the government

and lead the complete transac�on structuring.

Majority of the sale of various products and by-

products including but not limited to CBG, carbon

dioxide, organic fer�lizer, etc. may be made to the

government en��es (agriculture, hor�culture, fire,

food, and food processing en��es) or public sector

companies (oil and gas companies).

Ÿ Private developer: The private developer will be

selected through a transparent bidding process that

may be conducted by BBMP. The private developer

will appoint EPC contractor to construct the plant and

O&M contractor to operate the plant for the O&M

period.

P


Ÿ Lender: The lender may be a financial ins�tu�on, any

commercial/ na�onal bank or any other financing

agency, which may fund this project depending on the

terms and condi�ons.

Ÿ Public: The public (domes�c, commercial and

industrial players along with en��es involved in

farming, agriculture and hor�culture ac�vi�es)

wi l l u l�mate ly use the products and by-

products viz. CBG, carbon dioxide, organic

fer�lizer, etc. The various usage of the above

products and by-products are men�oned in

other sec�on.

The structure of the par tnersh ip shou ld be

designed to allocate risks to the partners who are

best able to understand and manage those risks

a n d t h u s m i n i m i z e c o s t s w h i l e i m p ro v i n g

performance.

Table 11: Type of concessions in PPP transac�on

Par�culars Asset Design / Financing

Ownership Build responsibility O&M

Build-Operate-

Transfer (BOT)

Government Private Government Private

Build-Own-

Operate-Transfer

(BOOT)

Private (�ll

the end of

concession);

then

Government

Private Government Private

Design-Build-

Finance-Operate

(DBFO)

Government Private Private Private

Design-Build-

Finance-

Operate-Transfer

(DBFOT)

Government

(a�er

comple�ngc

onstruc�on)

Private Private Private

Design-Build-

Finance-Own-

Operate

(DBFOO)

Private Private Private Private

Design-Build-

Finance-Own-

Operate-Transfer

(DBFOOT)

Private (�ll

the end of

concession);

then

Government

Private Private Private

Figure 24. Detailed risk-sharing mechanism for the DBFOT PPP model

Government (BBMP)Government, PSUand private markets

SPV/ProjectCompany

PPP/ConcessionAgreement

Long-term agreementsfor sale of product

and by products

Private player

EPC contractor O&M contractorEquity investors

Direct step-in rights

EPC contractfor construc�on

Sponsor/Developer(Lead investor)

Lenders/Bankers

Loan Agreement

Share subscrip�onagreement

O&MContract for opera�on

ShareholderAgreement

The PPP arrangement allows alloca�ng the risks,

op�mally between the government and the private

en�ty. Based on the above sugges�on for a DBFOT PPP

model, the summary of risk sharing mechanism including

but not limited to the mechanism is given.

DBFOT PPP model ownership structure is recommended.

For building state of the art project with latest technologies,

this should be an interna�onal compe��ve bidding.

This will ensure the alloca�on of prac�cal risks as per the

strengths and capabili�es of the government and private

en��es.

Poten�al markets and loca�on

Ÿ The selec�on of poten�al fruit and vegetable markets

for sourcing of waste and selec�on of poten�al

loca�on for se�ng up the Project needs to

understand the following aspects:

Ÿ Land availability: A land to an extent of 08 – 10 acres

is required to set up the Project. With increasing

urbaniza�on in Bengaluru city, it is difficult to find the

land inside the city and in proximity to the fruit and

vegetable markets. During this study, mul�ple land

parcels across the compost plants, exis�ng loca�on of

bio-methane plants and various other land parcels

shown by BBMP were evaluated. Based on the

analysis, an unu�lized land parcel of 08 – 10

acres(la�tude 12° 53’40”N; longitude 77° 39’11”E)

available inside the KCDC, Kudlu plant may be

u�lized for se�ng up this Project, subject to the final

decision of BBMP.

Ÿ The Supply chain for waste management: At present,

the waste generated from the fruit and vegetable

markets are transferred mostly to the compost plants

set up by BBMP within the same zone. It is per�nent

to men�on that the KCDC, Kudlu plant receives

waste from households and various other loca�ons in

proximity; however, it is not receiving waste from any

of the fruit and vegetable markets. In this regard,

BBMP may need to revise the terms and condi�ons of

the exis�ng contracts for compac�on and

transporta�on of waste from fruit and vegetable

markets. As per the current contracts, the contractors

are managing the waste within a zone and not outside

the zone. Hence, it is recommended that BBMP may

transfer the waste directly to the KCDC, Kudlu plant

from the select list of fruit and vegetable markets.

Ÿ The geographical cluster of markets: Most of the

select fruit and vegetable markets are located nearer

to the heart of the city. The wastes from the markets

provided in Figure 3 may be mapped to the KCDC,

Kudlu plant loca�on for its u�liza�on in the Project.

These markets will ensure a genera�on of a stable

input feedstock to the tune of 100 TPD even with

seasonal varia�on. The proposed Project loca�on is at

a distance of approx. 6 km from Madiwala market and

at a distance of 15 – 20 km from the iden�fied market

clusters including Krishna Rajendra, Kalasipalyam,

Binnypet, More, Russel, Nala, Banashankari markets.


The mostpreferred loca�on for se�ng up the Project may be

KCDC, Kudlu plant. The list of poten�al fruit and vegetable

markets can be referred from Figure 3, ensuring sourcing of

wastes from mul�ple zones – west zone (KR market and

Binnypet market), south zone (Kalasipalyam market, Madiwala

market, and Banashankari market) and east zone (More market

and Russel/ Nala market). The above markets have the poten�al

to supply quality input feedstock waste up to 200 TPD. This may

require BBMP to change the source-to-des�na�on mapping for

the fruit and vegetable markets to the compost plant and may

require revision of the contracts for the contractors managing

the waste for compac�on and transfer of waste for its u�liza�on

in order to cater to about 100 TPD feedstock for the Project.

Assessment of technology op�ons

Exis�ng biogas technology in India

Biogas is produced through anaerobic decomposi�on

from waste/biomass sources like agriculture residue, fruits

and vegetable waste, ca�le dung etc. When organic ma�er

is degraded by microorganisms and enzymes under

anaerobic condi�ons, raw biogas is produced.

Pre-treatment of the biomass may be necessary to make

the organic frac�on available for the microorganisms or

to secure hygienic standards in the case of feedstock,

which may be cri�cal from the epidemiological and

phytohygienic standpoint. Pre-treatment can be carried

out mechanically, thermally, chemically or biologically to

enhance anaerobic diges�on of organic waste.

Anaerobic technology is cri�cally dependent on the

development and use of anaerobic bio reactors. In recent

years, several novel reactor designs have been developed,

allowing for a significantly higher rate of reac�on per unit

volume of reactor. Different anaerobic processes, such as

batch, con�nuous one-stage, and con�nuous two-stage

systems, with a variety of methanizers like, con�nuously

s�rred tank reactor (CSTR), tubular reactor, Anaerobic

Sequencing Batch Reactor (ASBR), Upflow Anaerobic

Sludge Blanket (UASB) and anaerobic filters have been

applied to increase the yield of biogas.

To use biogas as vehicle fuel, purifica�on and

upgrada�on is necessary to reduce contamina�on and

increase the calorific value of the gas. Various biogas

upgrada�on and purifica�on methods are available,

based on one of three mechanism; absorp�on,

adsorp�on and membrane separa�on. Methods like

Water Scrubbing, Physical Absorp�on, Chemical


Absorp�on, Pressure Swing Adsorp�on, Membrane

Separa�on, Cryogenic Separa�on, and In-situ Methane

Enrichment are now commercially available.

The present policy and regulatory framework adopted by

the country caters to an increased demand for

CBG/BioCNG as a vehicular fuel with higher quality

standards. Therefore, there is an urgent need to scale up

produc�on of high quality CBG/BioCNG by adop�ng

more efficient technologies like cryogenic separa�on, in-

situ membrane enrichment and hybrid models.

Exis�ng technology for CO & H S removal 2 2

In India, CO and H S are generally removed using water 2 2

scrubbing technology and Pressure Swing Adsorp�on

(PSA) in order to use the biogas for power genera�on or

forother applica�ons. Similarly, High Rate Digester

(HRD) and Upflow Aerobic Sludge Blanket (UASB) are

suitable for removal of industrial effluents. At present,

there are no commercially established CO recovery 2

systems installed in any largescale biogas or CBG plant in

India. Most of the biogas plants in India have biogas,

power or CBG as the primary product and organic

fer�lizer or compost as secondary products. Direct

capture of CO may be explored as an op�on to 2

commercializethe technology in India, u�lizing the

exis�ng technological solu�ons available overseas.

Biogas and gas purifica�on technology in the

interna�onal market

Commercially, anaerobic diges�on and HRD is used as a

major technology for the produc�on of biogas in

Interna�onal markets. Most of the largescale units in

Europe and the USA are centralized or de-centralized

landfill and farm waste-based plants.

For recovery of CO , PSA is widely adopted along with 2

the emerging technologies on using a membrane,

monoethylamine (MEA) and cryogenic upgrading. In the

case of H S, water scrubbing and ac�vated carbon 2

technology are commonly used.

Need for Advanced Technology in biogas:

The Anaerobic Diges�on (AD) technology indigenously

developed and deployed in India was mainly focussed on

providing cost effec�ve solu�ons for mee�ng thermal

and small electrical energy needs of rural areas. Over the

years, the benefits of biogas u�liza�on have been

recognized and biogas produc�on is now set up on more

industrial and commercial scale.

Various process parameters which have bearing on the

performance of the biogas produc�on are mainly

associated with biogas digester configura�on,

Hydraulic Reten�on Time (HRT), Organic Loading

Rate (OLR), pH and buffering capacity, mixing,

temperature, co-diges�on, addi�on of various types

of addi�ves, purifica�on/enrichment and monitoring

of these parameters. The AD technology for large

scale produc�on from organic waste stream requires

various advanced technological interven�ons aiming

to increase bio-methana�on yield as well as capturing

all other waste impuri�es such as CO & H S and other 2 2

residues involved with biogas to make more it more

a�rac�ve, efficient and cost-effec�ve business model.

Thus, interna�onal technological advances and process

knowledge is required on:

Pre-Treatment Process:

Improvement of pre-treatment of the biomass is

essen�al to make the organic frac�on available for the

microorganisms or to secure hygienic standards in the

case of feedstock. This can be achieved through

mechanical sor�ng followed by biopulp making as input

to AD. It would help in immediate sor�ng and treatment

thereby reducing the land requirement and odour

management. Presently, simple mechanical treatments

such as screw press and shredderare used in Indian

biogas sector. However, advanced methods such as

high-pressure homogenizer and advanced pulping

devices should be integrated in pre-treatment of

BioCNG/CBG.

Anaerobic Digestors:

Fast treatment of organic waste is cri�cally dependent

on the development and use of high rate anaerobic

bioreactors. Different anaerobic processes, such as

batch, con�nuous one-stage, and con�nuous two-stage

systems, with a variety of methanizers like, con�nuously

s�rred tank reactor (CSTR), tubular reactor, anaerobic

sequencing batch reactor (ASBR), Upflow Anaerobic

Sludge Blanket (UASB) and anaerobic filters have been

developed and adopted globally. Con�nuous two or

three stage systems which are highly efficient

interna�onal AD methods could be deployed in India.


Biogas Upgrada�on / Purifica�on:

For transport use, biogas purifica�on and upgrading

(removalof CO ) from biogas is essen�al to reduce 2

contamina�on with hazardous components and increase its

calorific value. The exis�ng standards and specifica�ons

need to be matched to the interna�onal standards through

adop�on of newer and advanced technologies.

Presently Pressure Swing Adsorp�on (PSA) and water

scrubbing methods are being used in India. However,

there is a need to upgrade to high quality CBG/BioCNG

by adop�ng more efficient technologies like cryogenic

separa�on, in-situ membrane enrichment, chemical

absorp�on technology and hybrid models developed

globally that are available and deployed commercially.

Scope for interna�onal technologies in biogas

Ÿ Technology in business: The exis�ng programs for

biogas CBG under MNRE are technology neutral and

there is no restric�on and preference for biogas

technology to use in the Indian market. Developers of

waste to energy plants are permi�ed to choose the

techno-commercially viable technology to establish

the units in India.

Ÿ Domes�c Manufacturing Support: In addi�on, there

is a significant emphasis on boos�ng manufacturing

in India under the “Make in India” ini�a�ves by the

GoI. Establishing a technological and services

centeras an individual en�ty or under a consor�um in

India would facilitate market entry and technology

transfer in Biogas sector.

Ÿ Market Drivers for both domes�c and interna�onal

stakeholders: At present, the Na�onal Biofuel Policy,

waste to energy programs under MNRE and SATAT

scheme under Ministry of Petroleum & Natural Gas

are the market driving forces for commercializa�on of

biogas produc�on.

Ÿ Suppor�ng Environment for Import: At present,

MNRE is issuing Concessional Custom Duty (CCD)

cer�ficate for ini�al se�ng up of a project for the

genera�on of power and genera�on of CBG. The

provision of CCD to imported biogas technology and

equipment will promote technology transfer and cost

reduc�on in the sector.

Ÿ Favorable Indian market for global investors: In

general, development of biogas projects using

municipal wastes are procured through compe��ve

bidding conducted by the competent authority in

India (mostly municipal corpora�on) and any bidder,

which is a company or a consor�um or joint venture

(domes�c or foreign) is made eligible to par�cipate in

the bid. In the case of a foreign company, it is generally

mandatory for such selected company to incorporate a

Special Purpose Vehicle (SPV) to execute the project

related agreements. The exis�ng arrangement is

suppor�ve and opens upa window for foreign en��es

to invest and transfer technology into India.

Recently, Mumbai Corpora�on of Greater Mumbai has invited

bid for the development of 600 TPD waste to energy project on

DBO basis, in which Joint Venture arrangement is allowed with

Original Equipment Manufacturer (OEM)/ technology partner

with a minimum shareholding of 26%.

Ÿ Further, as per Na�onal policy on Biofuels - 2018,

biofuel technologies and projects (including biogas)

would be allowed 100% foreign equity through

automa�c approval route to a�ract Foreign Direct

Investment (FDI), provided biofuel is for domes�c use

only, and not for export.

Ÿ Foreign transfer funds and linked issues: In

accordance with Reserve Bank of India, the automa�c

approval will be given for payment in connec�on with

foreign technology transfer.

The payment parameters will be a lump sum payment up

to USD 02 million and/or 05% royalty for domes�c sales

and 08% for exports, subject to a total payment of 08% of

sales over a 10 years period from the date of the

agreement or 07 years from the commencement of

commercial produc�on whichever is earlier.

It is understood that the payments of more than USD 02

million and/or 05% royalty for domes�c sales and 08%

for exports requires prior approval for FDI from the

Foreign Investment Promo�on Board (FIPB).

For the purpose of technology transfer, a technology

transfer agreement needs to be executed between par�es in

foreign and India and the process of statutory approval

would vary based on the transac�on value indicated above.

Review of financing op�ons

Financing biogas projects have faced various challenges

due to large capital requirement, long payback periods,


regulatory, policy hurdles and viability of innova�ve

technology and non-maturity of technology. However,

long-term financing for the biogas sector is cri�cal to

achieving the development goals in order to have a high

socio-economic rate of return.

Table 12: Exis�ng financing op�ons for Biogas in India

Financing Terms and condi�ons Fund type

ins�tu�ons

NAMA

facility fund

Supports projects that tackle

specific local challenges for

cu�ng emissions. Capita l

Subsidy of~400Million INR

targe�ng waste processing

companies.

Grant

IREDA credit

Supports biomass and waste-to-

energy projects with debt

funding (max. up to 50%). The

interest rate varies between

10.25% to 11.45% for private

borrowers. A moratorium period

may not be provided. Maximum

loan repayment period shall be

10 years from the date of

disbursement, subject to the

condi�on that the repayment

period shall not be more than

b a l a n c e l i f e o f ‘ o � a k e

agreement less 05 years.

Debt

REC and PFC

Supports biomass and waste-to-

energy projects with long-term

debt financing. Three-year

moratorium period, 13 years

repayment period and interest

rate vary between 11.5% to

12.5% for private borrowers.

Debt

ADB

Supports to fund roads and

renewable energy project

ac�vi�es with a fund size of

USD 300 million.

Debt

ADB

(Private sector)

Supports Co-financing to non-

s ove re i g n i n f r a s t r u c t u re

projects at different stages of

development, including early

s tage , g rowth s tage , and

greenfield and brown field

p ro j e c t s . Pro j e c t fi n a n ce

( n o n r e c o u r s e o r l i m i t e d

recourse) and corporate finance

transac�ons, and support a

r a n g e o f p r i v a t e s e c t o r

p a r � c i p a � o n m o d a l i � e s

i n c l u d i n g p u b l i c - p r i v a t e

partnerships.

Debt

and Equity

JICA

Supports to fund renewable

energy genera�on projects in

Asia along with ADB. Project

finance (nonrecourse or limited

recourse) and corporate finance

transac�ons, and support a range

of private sector par�cipa�on

modali�es including public-

private partnerships.

Debt

Yes Bank

Supports to finance 05 GW of

renewable energy projects from

2015 to 2022 for projects that

s u p p o r t c l i m a t e c h a n g e

mi�ga�on ac�ons.

Debt

Green

climate fund

Supports providing grants,

concessional debt financing,

equity, and guarantees through

NDA, NABARD, and SIDBI, to

projects that facilitate low emission

energy access, sustainable land,

and forest management, and

resilient ecosystems.

Capital

grant,

Debt,

Equity

Source: Analysis based on the informa�on available on public domain

Case-in-point: NAMA grant facility fund

The Na�onally Appropriate Mi�ga�on Ac�on (NAMA) facility is

a grant that finances innova�ve projects which tackle specific

local challenges for cu�ng emissions in sectors and countries

with strong poten�al for being scaled up, replicated and able to

influence wider sectoral changes. NAMA is facilita�ng unlocking

investment opportuni�es by providing tailor-made climate

finance to fund projects with poten�al as below:

Ÿ Strengthen country ownership to deliver low carbon

ac�vi�es and aligning them closely with the country’s

na�onally determined contribu�ons (NDC) and other

relevant climate and development plans;

Ÿ Pilot financing models to overcome market barriers to low-

carbon development;

Ÿ Use innova�ve technologies and approaches that need

donor financing to deliver on country plans; and

Ÿ Boost par�cipa�on of the private sector to deliver low

carbon ac�vi�es

Projects under NAMA are selected via an annual ‘Call for Proposals’.

This is a compe��ve bidding process run by a Technical Support Unit

(TSU) that is open to all delivery partners and remains open for 3 – 4

months each year. The sixth call for the submission of NAMA

Support Project (NSP) Outlines closed on 15 March 2019 and the

seventh call for submission of NAMA support is expected in

November 2019. The UK, Germany, the European Union, and

Denmark have intended to contribute up to EUR 80 million for the

sixth call. NAMA facility has allocated a fund to the tune of EUR 15

million for India to provide technical and financial support to the city

and private entrepreneurs can be provided through the following:

Ÿ Grant for technical components

Ÿ Grant for capital subsidy

Ÿ Loan financing provided to set up a Risk Sharing Facility (RSF)


Table 13: Summary of NAMA fund (VI Call)

Key Ac�vi�es Targets /

Instruments* Beneficiaries

Awareness

building, training,

capacity building,

pilot

implementa�on

Grants for

Technical

Components –

EUR 5 million

grant

(INR ~40 crores)

To be implemented

through Deutsche

Gesellscha� für

Interna�onale

Zusammenarbeit GmbH

(GIZ).

Ÿ NGOs (for pilots)

Ÿ Training ins�tu�ons

Ÿ Material recovery facili�es.

Ÿ Recycling facili�es.

Ÿ Compos�ng Facili�es

Ÿ RDF facili�es.

Grants for

Capital Subsidy-

EUR 5 million

grant (INR ~40

crores)

Ÿ NGOs

Ÿ Waste processing companies

Ÿ Recyclers

Ÿ To be managed

by a Financial

Ins�tu�on.

Ÿ The RSF will

provide a first-

loss credit risk

coverage to

eligible FIs or

commercial

banks in the

event of defaults

Ÿ The RSF will also

provide working

capital subsidies

to the projects

Ÿ RSF will be

applicable to all

the technologies

men�oned for a

grant for capital

subsidy

Loan financing

provided to set

up a Risk

Sharing Facility

(RSF)-

EUR 5 million

grant

(INR ~40 crores)

Ÿ Waste processing

companies

Ÿ Financial ins�tu�ons

and commercial

banks (these en��es

will host the RSF)

It can be noted that the above financial support men�oned will

be spread over 5 – 7 ci�es selected as part of NAMA facility

project. The financial support will be available only a�er

approval of this project in the year 2020 (tenta�vely in the

month of February – March).

In this Project, the NAMA facility fund may be u�lized for se�ng

up the CO capture unit (one of its find kinds in India) that will 2

have a direct impact on the environment by reducing the carbon

footprint. In addi�on, the fund can be u�lized for the installa�on

of a Supervisory Control and Data Acquisi�on System (SCADA)

for real-�me based monitoring of the Project. This will ensure

con�nuous monitoring of the Project that will help to take

necessary proac�ve measures for enhancing the up�me of the

Project.

Project implementa�on schedule

Implementa�on schedule broadly includes securing

permits and licenses, achieving financial closure, the land

acquisi�on/ leasing, performing detailed engineering,

erec�on and commissioning and deployment of O&M

resources. This has been described in Table 14.

Financing analysis

An es�ma�on for the capital cost, opera�onal

parameters for revenue streams and expenses, financing

op�ons, various assump�ons, input assump�ons, and all

other terms and condi�ons were discussed with various

stakeholders, industry players, and consultants. Further,

a financial model was developed capturing the detailed

calcula�ons to evaluate the various business models to

understand the commercial viability of the Projects.

In this financial analysis, the project internal rate of return

(PIRR), equity IRR (EIRR), average debt service coverage

ra�o (DSCR), minimum DSCR, net present value (NPV) and

payback period were evaluated and a sensi�vity analysis

was conducted to understand the varia�ons of the above

parameters by changing the input condi�ons.

Figure 25: Financial parameters for evalua�on of business models

Project IRR

Whether the project IRR is favourable and is higher

than the weighted average cost of capital? As per

market intelligence, a minimum PIRR of 12% to 14% is

desired.

Equity IRR

Whether the equity IRR is favourable and is higher

than the cost of equity? The cost of equity changes

depending on the expecta�on of the investor. As per

market intelligence, a minimum EIRR of 18% to 20% is

desired.

DSCR

Whether the project is genera�ng sufficient cash flow

to service the debt taken for the project (principal and

interest repayment)? As per market, a minimum

DSCR of 1.20 and an average DSCR of 1.40 is desired.

NPV

Whether the project is genera�ng posi�ve NPV if the

future cash flow is discounted using the weighted

average cost of capital (WACC) as the discoun�ng

factor? As per market intelligence, a posi�ve NPV is

desired, depending on the expecta�on of the investor.

Payback period

Calculate the payback period to assess the length of

�me an investment reaches a break-even point. The

expecta�on of the payback period depends on the

expecta�on of the private investor. As per market

intelligence, a payback period of 6 to 8 years is desired.

The outcome of the above-men�oned parameters will

determine the financial viability of the project, subject to

the expecta�on of the investor based on the market prices.

Table 14. Project implementa�on schedule

Securing statutory approvals, as per

applicable policies and regula�ons

Ac�vityPeriod in Months

1

Land iden�fica�on along with acquisi�on/

leasing

The signing of long-term agreements for

o�ake of products and by-products

Procurement contracts with suppliers and sub-

contractors

Detailed engineering and finaliza�on of

technical specifica�ons

Financial Closure*

Comple�on of construc�on works – civil,

installa�on and electrical

Erec�on, tes�ng, and commissioning

Achieving the commercial opera�on date

Commencement of O&M ac�vi�es

* Timelines for financial closure may vary depending on the financing ins�tu�ons, as applicable.


4. Way forward

Assistance required from BBMP

Commercial viability of the Project will require following assistance from BBMP.

2 3 4 5 6 7 8 9 10 11 12

Loca�on of the Project:

BBMP to help Iden�fy and provide a con�guous land parcel to the extent of 8 – 10 acres for se�ng up the Project. It is suggested to u�lize the

premise of an exis�ng compost plant and u�lize the current supply chain for collec�on, compac�on, and transporta�on of waste from the fruit

and vegetable markets. In this regard, the unu�lized 08 – 10 acres land parcel available inside KCDC, Kudlu plant is an ideal loca�on for se�ng

up the Project, subject to the final consent from BBMP.

Selec�on of fruit and vegetable markets:

The select 08 large fruit and vegetable markets within BBMP area produce about 200 TPD of wastes and the list follows: Cluster 1 (West

and South zone) for 100 TPD: KR market (~60 TPD), Kalasipalyam market (~20 TPD), Binnypet market (~20 TPD) Cluster 2 (East zone) for

60 TPD: More market (30) and Russel & Nala market (~30 TPD) Cluster 3 for 25 TPD (South zone): Madiwala market (~25 TPD) and

Banashankari market (~15 TPD). A 100 TPD will be u�lized for the Project out of 200 TPD of available stable feedstock.

Compac�on and transporta�on of waste:

Compac�on and transporta�on of such segregated waste from the above fruit and vegetable markets at the doorstep of the plant, at

the cost of BBMP. In this regard, BBMP may need to change certain terms in the exis�ng contracts for the transporta�on of waste.

Segrega�on of waste at source:

BBMP may ensure segregated waste at the Project loca�on on a daily basis.

O�ake arrangement:

Gas supply agreement (GSA) with the off-taker (GAIL, IOCL, CGD) of CBG at least for a period of 20 – 25 years. Usage of CBG

operated buses by the Karnataka Transport Department to increase the demand for CBG. Long-term agreements with hor�culture

department, agriculture department or any other department for off-take of organic fer�lizer, compost (if any), brique�es, etc.

Agreements with government/ private for o�ake of CO and its commercializa�on, first of its kind in India.2

Approvals:

BBMP may facilitate all permits and approvals for SPV related to the construc�on and opera�ons of the Project.

Figure 26: Procurement process

Contract monitoring and administra�on

Comple�on of the plant

Long term agreements for sale of products & by-products

Contract execu�on with the successful bidder

Selec�on of a developer

Bid process management

Pre-bid mee�ng and clarifica�on of bidder's queries

Prepara�on of bid documents – RFP, Contracts etc.


Selec�on of private investor

BBMP may be required to conduct a procurement

process for selec�on of a private developer, as per the

public procurement guidelines of Karnataka. In this

regard, BBMP may follow an e-tendering process

through interna�onal compe��ve bidding.

Equity infusion:

BBMP may infuse equity into the SPV up to 26% of the total project cost, subject to its concurrence.

As it is suggested to keep the bidding process technology neutral, it is recommended that there shall be a provision for the equipment

supplier for equity investment to a certain extent, which may be consulted with BBMP.

Payment security:

BBMP may provide a payment security mechanism in the form of a le�er of credit or escrow mechanism to ensure �mely payments of

O&M contractor fee in case of any default made by the private investor in the SPV.

Subsidy:

BBMP may discuss with GoK to provide 50% subsidy on organic fer�lizer, as applicable to compost plants set up by BBMP.

Electricity:

BBMP may facilitate with BESCOM to provide an electrical connec�on during construc�on and opera�on period. However, the

monthly electricity payments will be made by the developer/plant operator.

Water:

BBMP may provide the water requirements required during construc�on and opera�on period.

Security services:

BBMP may u�lize the current deployment of the security services for KCDC, Kudlu plant and extend the same services for the

Project, without any cost.

Others:

Any requirement which may be suggested during further discussions with responsible stakeholders.

BBMP may include but not be limited to the following while

structuring the bid documents:

Ÿ No�ce invi�ng tender

Ÿ Instruc�ons to bidders

Ÿ Bid datasheet

Ÿ Qualifica�on requirement

Ÿ Terms of reference

Ÿ General condi�ons of contract

Ÿ Special condi�ons of contract

Ÿ Func�onal parameters

Ÿ Contract agreement

Ÿ Forms for submission of the bid

Ÿ Forms for contract agreement

In summary

Government of Ind ia has set the t a rget of

reducing the oil import dependence from 77% in 1 8FY14 to 67% by FY22 . India is focusing on

increasing domes�c produc�on, promo�ng the

use of biofuel and energyconserva�on to reduce

dependence on oil import. At present, India

relies more than 80% on imports to meet its oil 19demand .

18. GoI 'Urja Sangam' conference in March 2015

19. h�ps://www.reuters.com/ar�cle/us-india-oil-exclusive/exclusive-

indian-refiners-may-reduce-oil-imports-as-crude-prices-soar-

rupee-struggles-idUSKCN1M408G

Figure 27: Key benefits of CBG projects

CBG offset the conven�onal energy sources viz. coal,

petrol, diesel, CNG, LPG, etc. Unlike other forms of

renewable energy that are dependent on geographical

loca�on, biogas or CBG produc�on is geographically

independent and the feasibility is largely dependent on

the availability of feedstock. Hence, CBG projects are

feasible irrespec�ve of geography and terrain.

CBG technologies can make a significant contribu�on to the

UN Sustainable Development Goals (SDGs) targets and

goals, not only through genera�ng ultra-low carbon energy

and organic fer�lizer, but also through the reduc�on of

harmful methane emissions from food, fruit and vegetable,

farming and other organic wastes, providing energy and

food security, improving waste management and sanita�on,

and increasing the quality of life.

GoI has launched “Na�onal Policy on Biofuels -2018”

and SATAT program to encourage CBG market in India

that would benefit the na�on in reducing the import

dependency and managing the fiscal condi�ons.

Further, GoI has plans to integrate CBG networks with

CGD networks to boost supplies to domes�c, industrial,

commercial, and retail users in exis�ng and future

markets, which will ensure access to a cleaner and more

affordable renewable fuel.

The Smart Ci�es Mission of GoI has proposed the

integra�on of 60 out of the 100 selected ci�es into the

CGD network. The proposed business model could help

in tackling the twin problems of scien�fic waste

management and availability of cleaner fuel in the gas

network in these Smart Ci�es, for transport, domes�c

and commercial purposes.

Responsible waste management, reduc�on in carbon

emissions and pollu�on

Boost to entrepreneurship, rural economy and

employment

Support to na�onal commitments in achieving climate

change goals

Reduc�on in import of natural gas and crude oil

Buffer against crude oil/gas price fluctua�ons


Table 15. Top 10 ci�es of India ranked by waste genera�on.

Rank City Popula�on Waste

(2011) genera�on

(TPD) - FY16

1 Mumbai 12,442,373 11,000

2 Delhi 11,034,555 8,700

3 Bangalore 8,443,675 3,700

4 Chennai 7,088,000 5,000

5 Hyderabad 6,731,790 4,000

6 Ahmedabad 5,577,940 2,500

7 Kolkata 4,496,694 4,000

8 Surat 4,467,797 1,680

9 Pune 3,124,458 1,600

10 Jaipur 3,046,163 1,000

Source: EnviStats 2018, published by the Central Sta�s�cs Office

under the Ministry of Sta�s�cs and Programme Implementa�on

CBG plants create a socio-environmental impact by

reducing carbon footprint, conserving fossil fuels and

providing a sustainable business opportunity. CBG is

similar to CNG in its composi�on and energy poten�al.

India has vast poten�al for genera�on of CBG from municipal

waste. According to MNRE, in comparison to the levels of the

developed world of about 1 to 2.50 kg per capita per day,

average MSW genera�on in India is about 450 gm per capita per

day. The MSW genera�on rate in the country is 200 – 300 gm

per capita per day for small towns, 300 – 400 gm per capita per

day for medium ci�es and 400 – 600 gm per capita per day for

large ci�es.

Opportuni�es and scalability of the

program

This project may be scaled up to a larger program by

e x t e n d i n g t h i s c o n c e p t t o v a r i o u s o t h e r

municipali�es within Karnataka including but not

limited to the select large ci�es such as Hubli,

Dharwad, Gulbarga, Bellary, Mangalore, Mysore,

Davanagere, Belgaum, Bijapur, etc. Further, this

program may be rolled out to all metro ci�es and

other large ci�es in India.

The details of the top 10 ci�es In India, based on per day

total waste genera�on, where CBG projects may be

explored is Table 15.

As it is generated from Biomass, it a�racts all the

commercial benefits pertaining to renewable sources of

energy.

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