State Energy Minister Saurabh Patel announced the 'Gujarat Waste to Energy Policy-2016' during the Budget session of the Assembly.
Patel said such a policy will help urban local bodies in managing their ever increasing waste piles effectively.
In addition, the policy is also aimed at reducing pollution caused by untreated solid waste.
Under the policy, urban local bodies (ULBs), such as municipal corporations, will provide land on lease at a token rate of Rs 1 to business entities who wish to set up their solid waste-based power generations units, the minister said.
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Such power plants are eligible to get these benefits from government for a period of 25 years, Patel said.
ULBs will provide it's solid waste to the power plants for free. Further, it will be the responsibility of the civic bodies to deliver the waste to the power plants in their area.
The Gujarat Energy Regulatory Commission(GERC) will take into account the benefits extended to these plants while fixing the tariff rates at which the electricity will be purchased by the government from them, the document said
According to the Minister, this policy will prove crucial in tackling the issue of solid waste disposal.