Power Update

IBPA concerned about the viability of biomass

April 2012
Indian Biomass Power Association (IBPA) is concerned about the viability of biomass power projects amidst rising input costs and a sticky tariff structure. While price revision was allowed once in five years, it was brought down to three and is still inadequate. The cost of production of power for biomass plants in states varies with marginally higher rates in Maharashtra and lower rates in Andhra Pradesh. Yet, the current tariff of about Rs 4 a unit is inadequate; the required tarriff should be about Rs 5.75 to Rs 6 a unit.