solid waste management - india

8/12/2019 Solid Waste Management - INDIA

1/124

S Shariq Ahmed

Click to edit Master text styles

SOLID WASTE MANAGEMENT

INDIA


2/124

S Shariq Ahmed

SOLID WASTE MANAGEMENT IN INDIA

SOLID WASTE MANAGEMENT IN INDIA


3/124

S Shariq Ahmed

The Urbanising World

The 20th Century began with a population of 2 billion which increased to 6billion population by the end of the century.

The Century also witnessed the biggest exodus of human population from

Rural to Urban areas

The global urbanisation level increased from 10% to 50% during the century;

The world has turned urban with more than half the population living in

urban areas


4/124

S Shariq Ahmed

Extra-ordinary Urban Growth in Less

Developed Countries

600 Million people added to the worlds urban population between 1990-2000

Close to 3 million people are added in Asia alone every month, i.e. equivalent

to one new City a month

Of the 21 mega cities (popln. 10 million+) in the world today, 17 are estimated

to be in developing countries


5/124

S Shariq Ahmed

World Population Trends

9300

6883

6100

5667(82%)

4900(80%)

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2000 2010 2020 2030 2040 2050

8200(88%)

Source: UN Population Division; WORLD POPULATION PROSPECTSPopulation Reference Bureau: WORLD POPULATION DATA SHEET

Population in and developing (lesser developed) countries to be 88% of total

population by 2050 (in millions)


6/124

S Shariq Ahmed

Urbanisation Scenario in India

1350 M

361330 M

459 M

(34%)366.3

(31.13%)285.35

(27.78%)217.61(25.71%)

62(17%)50 M(16%)

0

300

600

900

1200

1500

1947 1951 1961 1971 1981 1991 2001 2011 2021

Total Urban

Decadal Growth Rate of Population (1991-2001) Urban: 31.13% Rural 17.97%

11 May, 2000, 1000 M

1 March, 2001,


7/124

S Shariq Ahmed

Urbanisation Scenario in India

Indias Population = 1027 Million

As per 2001 Census

Urban Population = 285 Million

Urban Areas = 5161

(Cities / Towns)


8/124

S Shariq Ahmed

India: Urbanisation Scenario

Metropolitan Cities/Agglomerations

705335

23

950

20

40

60

80

1951 1971 1991 2001 2011 2021(Projected)

No. of Cities/Agglomerations with more than

1 Million Population

(37.8 % )

(33.0 % )

No.of Class-I Cities(> 1 Lakh) - 300 (1991)

% of Urban Population - 65%


9/124

S Shariq Ahmed

Trend Of Urbanization

Year Year Year Year

1951 1991 2001 2021

Number of Urban 2795 3768 5161 --

Agglomerations / Towns

Urban Population 62.0 217.0 285.0 550.0

(in million)

As percentage of total 17.3% 25.72% 27.8% 41%

Population


10/124

S Shariq Ahmed

Magnitude Of Problem

Per capita waste generation increasing by 1.3% per annum

With urban population increasing between 3 3.5% per annum

Yearly increase in waste generation is around 5% annually

India produces 42.0 million tons of municipal solid waste annually at present.

Per capita generation of waste varies from 200 gm to 600 gm per capita / day.

Average generation rate at 0.4 kg per capita per day in 0.1 million plus towns.

Collection efficiency ranges between 50% to 90% of the solid waste generated.

h h d


11/124

S Shariq Ahmed

Magnitude Of Problem

Urban Local Bodies spend around Rs.500/- to Rs.1500/- per ton on solid wastemanagement of which,

60-70% of the amount is on collection alone

20% - 30% on transportation

Hardly any fund is spent on treatment and disposal of waste

Crude dumping of waste in most of the cities

S Sh i Ah d


12/124

S Shariq Ahmed

Quantity Of Waste Generation

Total quantity of solid waste generated in urban areas of the country 1.15 lakh tonneper day (TPD)

% Of total

garbage

Waste generated in 6 mega cities 21,100 TPD 18.35%

Waste generated in metro cities

(1 million plus towns)19,643 TPD 17.08%

Waste generated in other class-i towns

(0.1 million plus towns)42,635.28 TPD 37.07%

83,378.28 TPD 72.50%

If waste produced in all class-i cities is tackled, percentage of waste scientifically managed

would be 72.5% of total waste.

S Sh i Ah d


13/124

S Shariq Ahmed

Generation Of MSW(MT/Y)

S Sh i Ah d


14/124

S Shariq Ahmed

Types Of Solid Waste

Solid waste can be classified into different types depending on their source:

Household waste or municipal waste: includes food, paper, cardboard,

plastic, textiles, leather, glass, metal, ashes, electronics waste etc.

Industrial waste: includes toxic chemicals, oil, debris from construction site,packaging waste, ashes etc.

Biomedical waste or hospital waste: medicine bottles, expired medicines,

syringes, medical instruments such as scissors, blades etc.

S Sh i Ah d


15/124

S Shariq Ahmed

Types Of Solid Waste

Solid waste can be classified into different types depending on their source:

Agriculture waste: includes pesticides, crops, water coming from the fields

also consists of small amount of toxic chemicals.

Nuclear waste: includes radioactive substances coming from reactors, fuel(uranium, thorium, plutonium etc). Its highly dangerous and requires proper

disposal.

Hazardous waste: includes toxic chemical, acids, corrosive, ignitable and

reactive materials, gases etc.

S Shariq Ahmed


16/124

S Shariq Ahmed

Classification Of Wastes According To Their

Properties

Bio-degradable

can be degraded (paper, wood, fruits and others)

Non-biodegradable

cannot be degraded (plastics, bottles, old machines, cans, containers andothers)

S Shariq Ahmed


17/124

S Shariq Ahmed

S Shariq Ahmed


18/124

S Shariq Ahmed

Solid Waste Composition

S Shariq Ahmed


19/124

S Shariq Ahmed

Characteristics Of Municipal Solid

Waste

Compostable / Bio-degradable matter = 30% - 55%

(can be converted into manure)

Inert material = 40% - 45%

(to go to landfill)

Recyclable materials = 5% - 10%

(Recycling)

These percentages vary from city to city depending on food habits

S Shariq Ahmed


20/124

S Shariq Ahmed

Physical Characteristics of typical

Municipal Solid Waste in India

Contents Available in %

Paper 4.68

Plastics 0.71

Metals 0.64

Glass 0.45

Ash and Fine Earth 40.03

Total Compostable matter 38.75

S Shariq Ahmed


21/124

S Shariq Ahmed

Physical Characteristics of typical

Municipal Solid Waste in India

Characteristics % availability

Moisture content 25.2

Organic matter 23.4

Carbon 13.08

Nitrogen 0.58

P as P2O5 0.66

K as K2O 0.70

S Shariq Ahmed


22/124

S Shariq Ahmed

Composition of urban solid waste in

Indian cities

S Shariq Ahmed


23/124

S Shariq Ahmed

PRESENT STATUS OF WASTE

MANAGEMENT

Storage of waste at source is lacking

Domestic waste thrown on streets

Trade waste on roads / streets

Construction debris left unattended

Bio-medical waste disposed in municipal waste stream

Industrial waste disposed of in open areas

Segregation of recyclable waste at source not done

Primary collection of waste not done at place of generation

S Shariq Ahmed


24/124

S Shariq Ahmed

PRESENT STATUS OF WASTE

MANAGEMENT

Design & location of municipal waste storage depots in appropriate, resultingin littering of garbage.

Street sweeping not done everyday

Waste transportation done in open vehicles

Waste processing partially practised in 35 ULBs only

Final disposal done through crude dumping

Rag pickers collect recyclables from municipal bins/dumpsites and litter the

waste causing insanitary conditions

S Shariq Ahmed


25/124

S Shariq Ahmed

Reasons For Improper Management

Of Waste

Lack of planning for waste management while planning townships

Lack of proper institutional set up for waste management, planning and

designing in urban local bodies

Lack of technically trained manpower

Lack of community involvement

Lack of expertise and exposure to city waste management using modern

techniques / best practices

Lack of awareness creation mechanism

Lack of Management Information Systems

Indifferent attitude of ULBs to levy user charges and sustainability

S Shariq Ahmed


26/124

S Shariq Ahmed

Urban Infrastructure Scenario in India

According to estimates of the Rakesh Mohan Committee total requirementfor urban infrastructure development covering backlog, new investments and

O&M costs for the next ten years is Rs. 2,50,000 Crores (US$ 57 Billion)

The ninth Plan proposal identifies only around Rs. 12000 Crores. With

anticipated growth in Tenth plan providing additional funds of Rs.13,000Crores, the total expected plan outlay comes to Rs. 25,000 Crores (US$ 5.7

Billion).

S Shariq Ahmed


27/124

S Shariq Ahmed

Initiatives By Government Of India

Bio-medical Waste Handling Rules, 1998 - Notified

Municipal Solid Waste Management Rules, 2000 Notified.

Reforms Agenda (Fiscal, Institutional, Legal)

Technical Manual on Municipal Solid Waste Management

Technology Advisory Group on Municipal Solid Waste Management

Inter-Ministerial Task Force on Integrated Plant Nutrient Management from

city compost.

S Shariq Ahmed


28/124

S Shariq Ahmed


Tax Free Bonds by ULBs permitted by Government of India

Income Tax relief to Waste Management agencies

Public-Private Partnership in SWM

Capacity Building

Urban Reforms Incentive Fund

Guidelines for PSP and setting up of Regulatory Authority

S Shariq Ahmed


29/124

q


Introduction of Commercial Accounting System in ULBs & other Sector Reforms

Model Municipal Bye-Laws framed / circulated for benefit of ULBs for adoption

Financial Assistance by Government of India - 12th Finance Commission Grants

S Shariq Ahmed


30/124

q

Financing of Infrastructure Schemes

Budgets of Central Government

State Governments

Local Governments

Raising loans from LIC and other Financial Institutions

Loans from International Funding Agencies like OECF(JBIC), World Bank, ADB,

KfW, USAID, etc.

Grant funds from Donor Agencies like DANIDA, DFID, CIDA, National Trust/

Missions

Every One Crore rupees spent in infrastructural provision now, saves Ten Croreon cost escalation and public health care due to deficient services later!

S Shariq Ahmed


31/124

q

Some Innovative User pay

Instruments

Infrastructure Type Innovative user pay Instruments

Water Supply

Advance registration charges, Connection charges,

Enhancement of water tariff, Water benefit tax/water tax,

Betterment charges, Development charges, Utilization

from other sources such as octroi, property tax, sale of

plots etc. and Charges from water Kiosks

Sewerage

Connection Charges, Sewerage Cess Tax, Conservancy Tax,

Sale of Renewable waste, Sale of Sludge and Sale of

Nutrient rich wastewater.

Solid waste

Collection Charges, Cess, Sale of Renewable waste, and

Fines for dumping waste.

S Shariq Ahmed


32/124

q

Increased emphasis on Private Sector

Participation in Urban Infrastructure

The imperative need for Private Sector Participation for:

Extended Resources

State-of-the-art Technologies

Efficient Project Management / Maintenance

S Shariq Ahmed


33/124

q

National Urban Renewal Mission

CENTRAL / STATE GRANTS ARE PROPOSED TO BE PROVIDED FOR SOLID WASTEMANAGEMENT

Grant Loan

Centre State

Cities with 4 million plus population 35% 15% 50%

Cities with one million plus population

but less than 4 million50% 20% 30%

Other cities 80% 10% 10%

S Shariq Ahmed


34/124

q

Route to Private Sector Participation

The concept of Public-Private -Partnership is generally seen as one of thesemodels:

Build-Operate-Transfer (BOT)

Build-Operate-Own-Transfer (BOOT)

Build-Operate-Lease-Transfer (BOLT)

Rehabilitate-Operate-Transfer (ROT)

Design-Build-Finance-Operate-Transfer (DBFOT)

In INDIA full blown Private Sector Participation models have not been put into

place, so far

S Shariq Ahmed


35/124

Options for Private Sector

Participation (PSP)

However, the various options available, in order of increasing PrivateParticipation in Water Supply & Sanitation Projects being taken up are:

Service Contracts

Management Contracts

Lease

Concession

With experience and later on, through

BOT/BOOT etc.

Divestiture

S Shariq Ahmed


36/124

Private Sector Participation in Water

Utilities - Manila Experience

Successful involvement of Private Sector in Power Generation and Distribution;Largest effort in privatisation of Water utilities.

Metropolitan Water Works and Sewerage System (MWSS) had covered only

67% population with intermittent water supply and 8 % with sewerage system

in 1994.

56 % of 3000 mld supply was non-revenue water

MWSS privatised in 1997 and split into two.

Manila divided into two Zones - East and West.

Two Consortia led by - BENPRES for West and AYALA for east -selected to run

water works on 25 year franchise; Both Groups offered rates lower than the

prevalent rate (8.78 pesos)

S Shariq Ahmed


37/124


Utilities - Buenos Aires Experience

National Public Company OSN was in charge of water & sewerage. Unaccounted-for water was about 45% of production

Objective of PSP: To reduce Government burden and minimise the price for

service delivery

Privatised in 1993 - Through Concession, thus effectively keeping the fixed

assets under Public Ownership

Single private firm to operate on 30 years concession period to be revived by

re-bidding later

Responsible to operate and maintain fixed assets and expand coverage and

guarantee water quality

Pricing to incorporate subsidy already existing, first price review after 5 years

S Shariq Ahmed


38/124

Improvements in Water and Sanitation Services

after Awarding the Concession in Buenos Aires

Indicator Before theConcession (1992)

December 1995 Percentage change(%)

Production

capacity (millions

cum/ day)

3.4 4.3 27

Populationserved(M)

Water

Sewerage

6.0

4.9

6.5

5.3

8.8

6.4

Employees per

1,000 connections7,450 4,250 -43

Response time for

repairs (hours)180 48 -73

Meters in service 30,000 170,000 460

S Shariq Ahmed


39/124


Utilities - Buenos Aires Experience

Reasons for success :

Comprehensive and transparent bidding process - Two Envelope System

Independent Regulatory Agency established by Government to monitor

concessionaire, enforce the terms of contracts and regulatory specifications

and levy fines where necessary Contract had provision for adjustment and re-negotiation during

enforcement of concessional period (after 2 years the initial reduction of

tariff partly withdrawn in view of more capital investment on system

improvement, than originally estimated)

Re-negotiation : transparent and stakeholders involved Tariff policy had a fixed portion to cover cost of infrastructure and a variable

part proportional to consumption

S Shariq Ahmed


40/124

Indian Experience in Privatisation of

Water Supply & Sanitation

Tiruppur Water Supply and Sewerage Project

Implemented through a SPV New Tiruppur Area Development Corporation

(NTADC) promoted by

Infrastructure Leasing & Financing Services(IL&FS)

Tiruppur Exporters Association (TEA) Tamil Nadu Corporation for Industrial Infrastructure Development (TACID)

Estimated Project cost - Rs. 900 Crores at 1998 prices (Rs. 1000 crore at

present).

O&M contract to consortium of

Mahindra & Mahindra + United Utilities International,

North West Water +Bechtel

Attained financial closure with 10% stake by LIC & GIC.

S Shariq Ahmed


41/124



Pune Water Supply and Sewerage Project - Developed by Pune Municipal Corporation at a estimated project cost of Rs.

750 crores ($ 187.5 M) later revised to Rs. 392 Crores with HUDCO

assistance

Private Sector Participation envisaged in Construction, Operation and

Maintenance, Tariff collection

Financial Participation in addition to HUDCO expected from IL&FS, ICICI,

HDFC, IDFC and Bank of Maharashtra

Request for proposal sought

Tie-ups: Anglian Water + Trafalgar House & Shirkes

Binnie Black + Veatch & Thames Water + L&T

Krugger + Generale Des eaux & Shanska Int.

Preussag + Tata Projects

Hyundai + Sundram Chemicals

Hanjin + Krupp and Zoom Development Group

Political Risk - work re-tendered at RfP level

S Shariq Ahmed


42/124



Bangalore Water Supply Project BOOT arrangement for sourcing 500 mld water.

Establishment of two Tertiary Water Treatment Plants (of total 60 mld

capacity) with HUDCO assistance

Private Sector (Industries) to undertake laying of feeder mains

envisages provision of 500 mld of water to the city on a BOT basis with

estimated project cost is Rs. 800 Crores (US$ 173 M).

S Shariq Ahmed


43/124



Chennai Metro Water Out of 119 Sewerage Pumping Stations, Operation & Maintenance of 70 by

private sector

Sourcing of water in 7 wells through private sector

Construction of 300 mld Water Treatment Plant by - M/s Hindustan Dorr

Oliver Ltd. And O&M by M/s Richardson Cruddas

New Chembarampakkam WTP of 530 mld capacity (over and above the

existing 600 mld capacity)

Bid documents for BOT by TCS

S Shariq Ahmed


44/124



Private Sector Participation on the anvil in water supply & Sanitation Nagpur - Dewas

Kolhapur - Cochin

Vishakhapatnam - Dharwad

Goa - Alandur

Karnataka Urban Water Supply and Drainage Board (KUWS&DB) for

Management Contract in Distribution and O&M

Towns Selected for the initiative are Mysore - Mangalore

Hubli Dharwad - Gulbarga

S Shariq Ahmed


45/124

Privatisation experience in India in

Solid Waste Management

ENBEE Infrastructure Ltd. on BOO basis in Nagpur

M/s Excel Industries

Bio-degradation of solid waste in

Vijayawada, Calcutta, Mumbai, Bhopal, Bangalore, Gwalior, Cochin &

Calicut

M/s CELCO in Hyderabad

Common hospital waste treatment plant by GJ Multiclave in Hyderabad

Compost plant by IVR Enviro at Tiruppur

S Shariq Ahmed


46/124

Important issues in a BOT

arrangement

Who are the parties to the contract ? What are the objects and scope of the BOT arrangement?

What is the duration that might lead to early termination?

What are the obligations of the BOT operator ?

What are the obligations of the guarantor ?

What are the key regulatory provisions ?

How will the key risks be managed ?

How will performance be measured and monitored ?

How will the assets be transferred to the BOT operator?

What are the consents required ?

Who will be responsible for environmental liabilities ?

How will disputes be resolved ?

S Shariq Ahmed


47/124

Countdown Steps for Structuring

Private Sector Participation

Process Structuring and Stages countdown

09 Expression of Intent by Public Agencies

08 Firming up the Project Contours (Consultants)

07 Short-listing of Private Parties

06 Project Description Report 05 Pre-qualification of existing bidders

04 Issue of Request for Proposal (RFP)

03 Evaluation of Bids

02 Negotiations

01 Award of the Contract (Financial Closure)

00 Commencement of Work

S Shariq Ahmed


48/124

Evolving Appropriate

Organisational/Institutional Mechanisms

Legal and Regulatory Framework

Simplification of Legislation

Techno -Legal Regime (Australian Utilities Commission, U.K. initiatives-

OFTEL, OFWATS)

over-arching legislation in the line of Federal Law of Philippines (BOT,BOO,etc)

State/City Level Regulatory Bodies in India

CERC / SERC in Power Sector

TRAI (set to become CCI) in Telecom / ICE sector

NHAI in highways sector

Need for similar regulators in Urban Infrastructure

S Shariq Ahmed

b f l


49/124

Urban Infrastructure - Regulatory

Authority

Utility &

ShareholdersUsers

Political

Authorities

S Shariq Ahmed


50/124

The Regulatory Mechanism

Regulate prices

Promote operating efficiency

Specify and monitor service standards

Control externalities

Maintain public good functions

Ensure asset serviceability

Ensure development of essential infrastructure

Prevent manipulation of land values

Prevent unfair trade practices

Promote efficient use

Ensure responsiveness to final customer needs

S Shariq Ahmed


51/124

Model BOT Laws

Gujarat Infrastructure Development Act 1999 First State to formulate a separate act

Draws from the experiences in Philippines

Authorises the Govt./agencies to enter into concession agreements

Provides a list of various forms of assistance to be provided to the developer

including exemption of taxes etc.

Competitive bidding mandatory for ensuring transparency

The concession agreement to prescribe the user fee to be charged by the

developer

Need for replication in other States

S Shariq Ahmed


52/124

Infrastructure Authority

Infrastructure Authority formed under Infrastructure Development EnablingAct (IDEA), Andhra Pradesh

Envisaged Roles for Infrastructure Authority:

Conceptualisation of projects - Processing of the projects

Mobilising public opinion - Advisory role to the government

Co-ordination - Monitoring / approval of bidding

Implementation of P-P-P-P - Prioritisation of projects

Preparation of schedule. - Approval of TOR for consultancy

Budgeting / financial allocation - Expedite clearances and permits

Tariff fixing, user/abuser charges and cost recovery Model contract principles

Supervision over implementation and project management

Proposes a Swiss Challenge Approach for evaluating the single bid for

projects brought by proprietary agencies

S Shariq Ahmed


53/124

Financing Options MatrixS.

No

Characteristics ofInfrastructure

Projects

Issue(s) Options/ Alternatives

1 Capital intensiveScarcity ofResources

Multilateral financing

Consortium/Syndication

Federal Govt. Guarantee with financial support

2Long Gestation

period

Asset Liability

Mismatch

Take out financing

Long Term Borrowing

Securitisation of receivables

3

Working Capitalrequirements

based onProject Phasing

Overlapping ofproject

implementnschedules

Flexible financing delinking construction stagefrom

post-construction phase

Cash flow financing

4

Inadequatereturns and

uncertainty onreturns

High cost offunds,

Defaults/NPArisk

Tax Incentives Priority Sector Lending

Sub-ordinate debt finance

Firm tariff policy

Escrow Accounts

Power Purchase Agreements

Sinking funds

S Shariq Ahmed


54/124

Financing Options MatrixS.

No

Characteristics ofInfrastructure

Projects

Issue(s) Options/ Alternatives

5Long Termborrowing

Interest rate &Currency

fluctuations

Interest Rate Swap Forward Rate Agreements Floating Interest Rates

6Multiple debt

servicing

obligations

High debtequity ratio

Sub-ordinate debt financing Equity infusion from strategic partners

7

Lack of tangibleassets and

collateral/security

Realization ofloan amount

on liquidationor default

Letters of comfort

Pari passu charge on Escrow Account Bank Guarantees

8

Varied expertise

and advancedtechnology

Lack of

appraisal &operationalskills

Joint Ventures

Special Purpose Vehicles

9Pioneering

nature /Feasibility risk

Risk ofen masse

deployment

Venture Capital Funds Project Initialisation Funds

S Shariq Ahmed

C ti fi i /


55/124

Consortium financing /

Group lending

For capital intensive projects and greenfield ventures beyond lending capacityof single financial institution

Pooling of resources for funding the project.

Ensures sharing of the risks involved.

Needs rationalisation and standardisation of appraisal procedures, lending

guidelines and legal documentation of the constituent financial institutions

Need for pari passu charge on the escrow account as security to the partner

institutions.

Desirable to provide a single window facility based on tripartite or joint

agreements with the borrowing agency.

S Shariq Ahmed


56/124

Takeout Financing

Partner Institution

5 years 10 years

Primary

Lender

TENURE OF LOAN(15 years)

Outstanding Loan Amt.

(Principal + Interest)

Transfer of LoanAccounts

Fees / CommitmentCharges

Liabilities of primary lender onproject absolved at the end of a

specified period

Partner institution transfers

pertinent loan accounts to its own

books, in lieu of an agreed fee orcommitment charge.

Both parties bear the project risks

after the take-out based on a non-

recourse structure.

Pari passu charge on the escrowaccount as security option.

S Shariq Ahmed


57/124

Innovative Financing Mechanisms

Sub-ordinate (mezzanine) debt financing: Internal restrictions on equity participation by financial institutions,

Lower equity and hence limited debt-equity ratio of new state level bodies

for infrastructure projects restrict them from market borrowing on a large

scale.

Funding could be considered as deemed equity for a specific period grantingthe bodies better financial leverage

Cashflow financing:

Institutional funding to be tailor-made to suit the financial requirements at

various stages of the project calling for cash-flow financing.

S Shariq Ahmed


58/124

Securitisation of Receivables

Periodic Cash Flows

Pass Through

Certificates

Loan

Fees

Outstanding

Loan

Portfolio

Repayments

Lending

Institution

SPV

Borrower

Investors

S Shariq Ahmed


59/124


Conversion of future cash receivables into financial or debt instrumentstradable in capital market

Role of SPV as intermediary:

assumes the entire credit risk on the securitised receivables of selected

outstanding loan portfolio

Insulates the lender from bankruptcy & insolvency risks

repackages the receivables into pass-through certificates of manageable lots

for onward trading in the secondary market.

Principal and interest components of the repayments are passed on to the

security owner.

S Shariq Ahmed


60/124


Merits to Investor: Continuous cash flow on Securitised instruments over the life of the loan

and principal depletes over time.

Advantages to Lending Institution:

reduces the locking up of funds in a few projects.

facilitates reduction in borrowings

ensures better asset-liability management.

provides efficient exit option for the financial institutions to transfer the

risks of default and prepayment

S Shariq Ahmed


61/124

Municipal Bonds

In United States, account for nearly 70% of the capital financing forinfrastructure.

General Obligation Bonds (GO)

Revenue Bonds

Ahmedabad Municipal Corporation GO bond issue of Rs. 100 Crores

Bangalore, Vijayawada and Ludhiana have already raised money through

municipal bonds; Mumbai & Pune have obtained credit ratings; Kanpur

Development Authority latest entrant

S Shariq Ahmed


62/124

Municipal Bonds

Problems faced: Since bonds can be raised over night within a short period and their

utilisation may require 2-3 years, quite often, States/agencies tend to fall

into the debt trap

On account of the dire financial position, Credit Rating of agencies need to

be enhanced to enable raising funds at lower costs.

S Shariq Ahmed

Facilitating Urban Local Bodies in


63/124


Resource Mobilisation

Governments new strategy on the anvil for ULBs : Bond Bank

Varying capacity levels of ULBs in obtaining high credit rating, lower

borrowing costs, optimal resource utilisation & asset management

Need for financial intermediary to pool the projects of the various

agencies and float a common bond on the merit of the projects settingapart a reserve fund.

Bond bank could be at the national level as a special purpose vehicle or as

a subsidiary of the financial institutions.

S Shariq Ahmed



64/124


Resource Mobilisation

Governments new strategy on the anvil for ULBs : Credit Line

Making available requisite loan facilities for Urban Local Bodies and other

agencies

Challenge Fund

For facilitating the States and Urban local bodies implementing the

reform agenda

S Shariq Ahmed

Project Initialisation Fund/ Project Initiative


65/124

Project Initialisation Fund/ Project Initiative

Fund /Project Development Fund

PIF/PDF for creation of well structured projects Technically viable

Financially feasible and bankable

Environmentally sustainable

S Shariq Ahmed

Emerging State Level Initiatives for


66/124

Emerging State Level Initiatives for

Financing Urban Infrastructure

State Level Urban Development Funds like TNUDF & MUDF in TamilnaduMaharashtra, for facilitating private sector participation bringing in

commercial orientation, improving financial management , assisting ULBs

accessing capital markets.

State level urban development Finance Corporations formed APUFIDCO - TUFIDCO

KUDFC - KUIDFC

Gujarat Municipal Finance Board

Tax intercept concept introduced in Madhya Pradesh State for urban

development loan servicing fund for local bodies.

S Shariq Ahmed


67/124

FDI in Infrastructure

Foreign Direct Investment(FDI) could be permitted through: Financial Collaborations

Joint Ventures / Technical Collaborations

Capital Markets via Global Depository Receipts (GDRs / Euro issues)

Private Placements or Preferential Allotments

In India, FDI upto 100% permitted in airports (beyond 74% with approval) and

Mass Rapid Transit Systems.

S Shariq Ahmed


68/124

FDI in Infrastructure

FDI upto 100 % permitted in Integrated township development including housing, commercial premises,

hotels, resorts

City and regional urban infrastructure facilities

Manufacture of building materials

Development of Land with allied infrastructure as part of integrated

township development

Enabling guidelines required to prevent capital flight (lock in period) and

regulate repatriation of profits in FDI

S Shariq Ahmed


69/124

Special Economic Zones

Proposal to set up Special Economic Zones (SEZ) in various parts of country asduty-free zones for industrial, service and trade operations to attract foreign

investment and facilitate expeditious development.

Proposal for a new SEZ at major Ports

The policy envisages the treatment of SEZs as priority areas in provision of

infrastructure, convergence in statutory clearances, exemption from duties and

levies as well as liberal regulations.

SEZs as industrial townships would need priority for integrated provision of

infrastructure facilities.

S Shariq Ahmed

Imperatives for Sustainability in


70/124

Imperatives for Sustainability in

Infrastructure Financing

Development of Legal & Regulatory

Institutional Mechanism

Fiscal & Financial Framework

Need for an Integrated Management of Urban Infrastructure & Intersectoral

Co-ordination.

Creation of a new Breed of Urban Managers sensitised and responsible for

taking on the challenges in urban infrastructure.

Curriculum up-gradation to provide not only technical inputs (Civil Engg.+

Transportation Engg. + Hydraulic engineering + Public Health Engineering ); but

also Financial Engineering.

S Shariq Ahmed

Towards Sustainability in


71/124

Towards Sustainability in

Infrastructure Development

Development of innovative financing and security mechanisms

Enabling Public-Private-Peoples-Partnerships (PPPP) and Government-Citizen

Partnerships

General consensus on common national issues

Role of the media

creating awareness and disseminating best practices highlighting the

deficiencies and pertinent issues mobilising unified public opinion

attracting infrastructural investments

protecting vulnerable interest groups / environment

Towards equitable

and balanced

Infrastructure

development and

economic growth.

S Shariq Ahmed


72/124

Vicious Circle to Virtuous Cycle

High Level of

Infrastructure

High Service

Level

Higher level

Maintenance

Higher Willingness

to Pay

High Collection/

Recovery

Higher

Investments


73/124

S Shariq Ahmed

Various Technology Options Recommended


74/124

Various Technology Options Recommended

For Waste Processing

Upto 50 metric tons / day(Mt/day) = Vermi-composting

Between 50 Mt & 500 Mt / day = Vermi-composting + mechanical composting

More than 500 Mt / day = mechanical composting + refuse derived fuel(RDF)

from rejects keeping in view the type of the city (industrial or non-Industrial)

or Bio-methanation

S Shariq Ahmed


75/124

Major Industry Players

Vertical Portals www.solidwaste.com

www.swana.com

Solid waste management equipment

Hi-Rise Recycling Systems

MotorVac

Waste Connections

S Shariq Ahmed

d l
http://www.solidwaste.com/http://www.solidwaste.com/http://www.swana.com/http://www.swana.com/http://www.hiri.com/http://www.hiri.com/http://localhost/var/www/apps/conversion/tmp/scratch_2/motorvac.comhttp://localhost/var/www/apps/conversion/tmp/scratch_2/motorvac.comhttp://www.wcnx.org/http://www.wcnx.org/http://www.wcnx.org/http://localhost/var/www/apps/conversion/tmp/scratch_2/motorvac.comhttp://www.hiri.com/http://www.swana.com/http://www.solidwaste.com/


76/124

Major Industry Players

Solid waste processing Barringer Labs

Casella

Safety-Kleen

Waste Industries

Waste Management

Solid waste management consulting services

Industrial Services of America

Roy F. Weston, Inc.

(Note: Major players were largely determined by an article found atwww.wasteinfo.com, http://biz.yahoo.com/prnews/000119/ny_wall_st_1.html,as well as company 1998 revenues)

S Shariq Ahmed

d
http://www.barringer-labs.com/http://www.barringer-labs.com/http://www.casella.com/http://www.casella.com/http://www.safety-kleen.com/http://www.safety-kleen.com/http://www.safety-kleen.com/http://www.waste-ind.com/http://www.waste-ind.com/http://www.wm.com/http://www.wm.com/http://www.isa-inc.com/http://www.isa-inc.com/http://localhost/var/www/apps/conversion/tmp/scratch_2/rfweston.comhttp://localhost/var/www/apps/conversion/tmp/scratch_2/rfweston.comhttp://www.wasteinfo.com/http://biz.yahoo.com/prnews/000119/ny_wall_st_1.htmlhttp://biz.yahoo.com/prnews/000119/ny_wall_st_1.htmlhttp://www.wasteinfo.com/http://localhost/var/www/apps/conversion/tmp/scratch_2/rfweston.comhttp://www.isa-inc.com/http://www.wm.com/http://www.waste-ind.com/http://www.safety-kleen.com/http://www.casella.com/http://www.barringer-labs.com/


77/124

Targeted Customers

Vertical Portals All industry players

Waste management professionals

Solid waste management equipment

Local government contracts

Commercial and industrial companies

Homeowners associations

S Shariq Ahmed

d C


78/124

Targeted Customers

Solid waste processing Environmental consulting engineering firms, hazardous and low level

radioactive waste treatment/disposal companies, public utilities, industrialcompanies (including mining companies) and various Federal, state and localgovernment agencies.

(barringer-labs.com)

Solid waste management consulting service

Industrial and government

Other solid waste processing firms

S Shariq Ahmed

WTE i I di


79/124

WTE in India

First ambitious program to encourage WTE launched in 1995

To demonstrate that WTE is possible

Long-term target of producing 1700MW of energy from priority waste

streams

Operated under the aegis of National BioEnergy Board (NBB), Ministry of

Non-conventional Energy Sources (MNES)

Has an elevated status due to the contribution to reducing greenhouse gas

emissions and in encouraging the integration of best practice waste

collection and transfer to Energy

16 cost sharing projects ~ usage of Bio-methanation To establish a fiscal and financial regime necessary for WTE

S Shariq Ahmed

E f W


80/124

Energy from Waste

Potential of Power Generation in India from Waste Urban and Municipal Wastes : 1000 MW

Industrial Wastes : 700 MW

(Dairy, Distillery, Press Mud, Tannery,

Pulp and Paper and Food Processing

Industries)

TOTAL : 1700 MW

Common perception WTE is most applicable to India

Reduces waste by 60 - 90% Recovers resources

Aids safe disposal of waste avoids pollution of land, water and air

Reduces Greenhouse gases

S Shariq Ahmed

Is WTE the answer to Indias waste


81/124

problem?

WTE tech introduced in India sofar are NOT based on a world-

wide tried and tested model Technologies like bio-methanation, incineration,combustion etc have toxic by-

products that cause seriousenvironmental problems like Acidrain, fog

WTE

technologiesare regardedas unused,

suspecttechnologies

S Shariq Ahmed

Is WTE the answer to Indias waste


82/124

problem?

Cost of a typical 5MW WTE plant ~ Rs 40 crores

Consumption ~ 150 tons of urban waste for each MW of electricity

Which is an investment of Rs 8 crore per MW i.e., FOUR times cost ofconventional Thermal power!!

And, the subsidy exceeds 50% of total project cost!

S Shariq Ahmed

WTE P j t i M h ht


83/124

WTE Projects in Maharashtra

Municipal Corporation Promoter Capacity

Municipal Council of

Greater Mumbai

a) MSW Pvt. Ltd,

Mumbai

b) Waste

Management Ind.

Ltd, Mumbai

c) EDL India Ltd, New

Delhi

14.98 MW

10.0 MW

21.0 MW

Kalyan Dombivali Municipal

CorpNot Finalised 5.52 MW

Pimpri-Chinchwad

Municipal Corpn

Soundcraft Indus,

Mumbai3.9 MW

TOTAL 51.88 MW

S Shariq Ahmed

WTE l t ~ L k


84/124

WTE plant ~ Lucknow

5 MW Power Generation Project for MSW Promoter

Asia Bio-Energy (A consortium of companies in Austria, Germany,

Singapore and India)

Technology

BIMA (Biogas tech) from Austria plus some equipment from Germany

Capacity

5.0 MW (nett), 5.6 MW (gross) power, 80 TPD manure

Input waste

About 500 TPD Project cost

Rs 73 crore

S Shariq Ahmed

WTE ~ j i l d


85/124

WTE ~ major processes involved

Pre-treatment: Removal of inerts / inorganic / non-biodegradable matter and homo-

genisation of feedstock

Energy Recovery:

Anaerobic Digestion / Gasification / Combustion

Post-Treatment:

Stabilisation of treated / processed material for final disposal / utilisation

S Shariq Ahmed

Methods Of Disposals


86/124

Methods Of Disposals

These are the following methods for disposal of the solid waste.

LAND FILLS

INCINARATION

BIOLOGICAL REPROCESSING

RECYCLING

OCEAN DUMPING

PLASMA GASSIFICATION

S Shariq Ahmed

Solid Waste Management Hierarchy


87/124

Solid Waste Management Hierarchy

S Shariq Ahmed

Land Fill


88/124

Land Fill

It is the most traditional method of waste disposal.

Waste is directly dumped into disused quarries, mining voids or borrow pits.

Disposed waste is compacted and covered with soil to prevent vermin and

wind-blown litter.

Gases generated by the decomposing waste materials are often burnt to

generate power.

It is generally used for domestic waste.

S Shariq Ahmed

Advantages


89/124

Advantages

Landfill site is a cheap waste disposal option for the local council.

Jobs will be created for local people.

Lots of different types of waste can be disposed of by landfill in comparison to

other waste disposal methods.

The gases given off by the landfill site could be collected and used for

generating power.

S Shariq Ahmed

Disadvantages


90/124

Disadvantages

The site will look ugly while it is being used for landfill.

Dangerous gases are given off from landfill sites that cause local air pollution

and contribute to global warming.

Local streams could become polluted with toxins seeping through the groundfrom the landfill site.

Once the site has been filled it might not be able to be used for redevelopment

as it might be too polluted.

S Shariq Ahmed

Land Required For Disposal Of MSW


91/124

Land Required For Disposal Of MSW

S Shariq Ahmed

Emmision Of Methane From Landfill


92/124

Emmision Of Methane From Landfill

S Shariq Ahmed


93/124

S Shariq Ahmed

Incineration


94/124

Incineration

Incineration is a waste treatment process that involves the combustion of solidwaste at 1000C.

Waste materials are converted into ash, flue gas, and heat.

The ash is mostly formed by the inorganic constituents of the waste and gasesdue to organic waste.

The heat generated by incineration is used to generate electric power.

S Shariq Ahmed

Advantages


95/124

Advantages

Minimum of land is needed compared to other disposal methods.

The weight of the waste is reduced to 25% of the initial value.

No risk of polluting local streams and ground waters as in landfills.

Incineration plants can be located close to residential areas.

Gases are used to generate power.

S Shariq Ahmed

Disadvantages


96/124

Disadvantages

Expensive

Required skilled labour.

The chemicals that would be released into the air could be strong pollutants

and may destroy ozone layer (major disadvantage).

High energy requirement

S Shariq Ahmed


97/124

INCINERATION PLANT OBERHAUSEN, GERMANY

S Shariq Ahmed

Ocean Dumping


98/124

Ocean Dumping

Ocean dumping is the dumping or placing of materials in the ocean, often onthe continental shelf.

A wide range of materials is involved, including garbage, construction and

demolition debris, sewage sludge, dredge material, waste chemicals, and

nuclear waste.

Sometime hazardous and nuclear waste are also disposed but these are highly

dangerous for aquatic life and human life also.

S Shariq Ahmed

Advantages


99/124

Advantages

Convenient

Inexpensive

Source of nutrients for fishes and marine mammals.

Vast amount of space is available.

All type of wastes are disposed.


100/124

S Shariq Ahmed


101/124

S Shariq Ahmed

Biological Reprocessing


102/124

Biological Reprocessing

Materials such as plants, food scraps, and paper products can be decomposedinto the organic matter.

The organic matter that is produced from this type of recycling can then be

used for such things as landscaping purpose or agricultural uses.

Usually this method of recycling is done by putting the materials in a container

and let to stay there until it decomposes.

S Shariq Ahmed

Recycling


103/124

Recycling

It is basically processing or conversion of a waste item into usable forms.

Recyclable materials include many kinds of glass, paper, metal, plastic, textiles,

and electronics.

But recycling is not a solution to managing every kind of waste material.

For many items like plastic bags, plastic wrap, yogurt cups, margarine container

etc. recycling technologies are unavailable or unsafe.

S Shariq Ahmed

Advantages


104/124

Advantages

Reduction of air and water pollution.

Reduction in the release of harmful chemicals and greenhouse gases from

rubbish.

Saves space required as Waste Disposal Landfill.

Reduce financial expenditure in the economy.

It helps in conserving a lot of energy resources like petroleum and coaldeposits.

S Shariq Ahmed

Saving Through Recycling


105/124

Saving Through Recycling

When aluminium is recycled - considerable saving in cost.

Making paper from waste saves 50% energy.

Every tone of recycled glass saves energy equivalent to 100 liters of oil.

Recycling about 54 kg of newspaper will save one tree.

S Shariq Ahmed


106/124

MATERIAL ENERGY SAVING

ALLUMINIUM 95%

CARDBOARD 24%

GLASS 5-30%

PAPER 50%

PLASTIC 70%STEEL 60%

S Shariq Ahmed

Process Of Recycling


107/124


COLLECTION: The first step required for recycling is collecting recyclable

materials from communities. Today many major cities and larger communities

offer a curbside pick up service for recyclable materials.

SORTING: The second step involves processing the recyclable materials. This

includes sorting the materials into groups, cleaning them and getting themready to be sold to manufacturers who will turn the materials into new

products.

S Shariq Ahmed



108/124

ocess O ecyc g

MANUFACTURING: It is the third step in the recycling process. The collected

material is sent to industries those convert them into new products.

PURCHASING: The last step involves the purchasing of recycled products.

When consumers purchase products that have been made with post consumer

material the recycling process has been completed and then can be repeated.

S Shariq Ahmed

Recycling Not A Solution To All

P bl !


109/124

Problems!

Recycling is not a solution to managing every kind of waste material

For many items recycling technologies are unavailable or unsafe

In some cases, cost of recycling is too high.

S Shariq Ahmed

What Should Be Done?


110/124

S Shariq Ahmed

Plasma Gassification


111/124

Plasma gasification is a new garbage disposal solution using plasma

technology.

Uses electrical energy and the high temperatures (4000C to over 7000C)

created by an plasma torches.

Almost completely breaks down the waste into syngas which are used to

generate electricity.

The remaining material (slag) is used to produced material for building

projects.

S Shariq Ahmed

What Is Plasma?


112/124

Fourth state of matter.

It is an ionized gas at high temperature,

capable of conducting current due to free

electrons.

Created by applying an electric arc to a low-

pressure gas.

Lightning is an example from nature.

S Shariq Ahmed

Plasma Torches


113/124

Consists of a tungsten rod (cathode) and a

water-cooled copper (anode).

Shaped in the form of a nozzle.

Gas is introduced in the electrode gap and a dcarc is established between the electrodes to

create plasma.

S Shariq Ahmed

How Plasma Gassifire Works?


114/124

CONVEYER SYSTEM:

Garbage is loaded on the conveyer belt.

Pushes into the pretreatment system by means of plunger.

PRETREATMENT MECHANISM:

Use to make the entire system more efficient.

Use grinders or crushers to reduce the size of the pieces of waste.

Plasma torch can break down the smaller pieces faster.

S Shariq Ahmed

How Plasma Gassifire Works?


115/124

S Shariq Ahmed

Furnace


116/124

Furnaces have an airlock system to allow garbage to come in while preventing

the hot gases from escaping into the atmosphere.

Have multiple torches to break down all the matter into gases and slug.

Also features a drainage system to tap off the slag and a vent system to ventout the gases.

To withstand the intense heat, furnaces are lined with refractory material and

often have a water-cooling system as well.

S Shariq Ahmed

Furnace


117/124

S Shariq Ahmed

Slug Drainage


118/124

Molten slag at the bottom of the furnace and helps in maintaining the high

temperature inside the chamber.

Occasionally slag must be drained from the furnace.

Slag drains away from the furnace and cools in a separate chamber.

Slug is also used to produce some building materials.

S Shariq Ahmed

Slug Drainage


119/124

MOLTEN SLAG DRAINING FROM A PLASMA FURNACE

S Shariq Ahmed

After Burning


120/124

Gases can pass through a secondary chamber where natural gas flames

combust any remaining organic material in the gases.

These extremely hot gases then pass through a Heat Recovery Steam

Generator (HRSG) system.

Where they heat water to form steam.

This steam then turns a steam turbine to create electricity.

S Shariq Ahmed

After Burning


121/124

S Shariq Ahmed

Byproducts Of The Process


122/124

SYNGAS:

A mixture of several gases but mainly comprises hydrogen and carbon

monoxide.

Can be used as a fuel source.

SLUG: Solid byproduct from the gasification process.

The weight of the slag is about 20 percent of the weight of the original

waste.

The volume of the slag is about 5 percent that of the original waste volume

S Shariq Ahmed

Conclusion


123/124

The key to healthy communities is to redirect the millions ofdollars in investments slated for incineration systems into waste

prevention and reduction and zero waste systems that

maximize both return on investmentsand economic development opportunities

S Shariq Ahmed

www.allied-group.co


124/124

Plot No.293,Kehar Singh Estate

West end Marg, Opp.D Block Saket,

Saidula Jab, New Delhi-110030

Contact No. - 011 40506600

Facsimile - 011 40506636Website www.allied-group.co

solid waste management - india

Documents