Gammon-Barmaco in JV to set up biomass power plants in Haryana

A consortium of Gammon Infrastructure Projects Pvt Ltd and Barmaco Energy Systems Ltd will soon set up renewable power generation plants at eight places in Haryana.

Gammon Infrastructure Projects Private Ltd Chief Executive Officer R Jayamani said the consortium was formed to obtain the tender and a special purpose vehicle would be formed to execute and run the projects.

"We signed the memorandum of understanding with the Haryana Renewable Energy Development Agency on February 25 this year for the generation of 154 Mw biomass based power. An investment of Rs 4.2 crore per MW is required for setting up such projects. So it will amount to about Rs 677 crore of investments for the completion of the projects," said Jayaramani.

The state needs additional power of about 4,000 Mw in the next three years to keep pace with the rapid industrialisation and urbanisation.

The initial viability study of these projects was done by the Haryana Renewable Energy Development Agency.

Jayamani said the private player had hired its own consultants to work on feasibility reports because the location was the most important factor. The inputs (rice husk, wheat straw, sugarcane straw) have to be collected within a radius of 15-20 km to make the project viable.

"Although we propose to make all the plants of equal capacity, the proximity and volume of inputs available at specific plant would determine the capacity of the plant", he added.

The company would sign an agreement with the Haryana State Electricity Board for the distribution of power.

It would take about 33 to 34 months for the completion of the projects, informed Jayamani.

According to Haryana Renewable Energy Development Agency officials, this is first of its kind project in the state. This would help raising the farm income in state as the farmers do not know any technique to gainfully use the husk and straw.

He added that the independent power producers will be eligible for the exemption from electricity duty, local area development tax and wheeling.

The company entered into a similar agreement with the state of Punjab last year for setting up a 108 Mw biomass based power plants at nine locations in Punjab.