The National Thermal Power Corporation (NTPC) and East Delhi Municipal Corporation (EDMC) have come together to sign a joint venture company (JVC) to harness municipal waste into green energy.
As per the terms and conditions of the proposed JV, NTPC and EDMC will have a 74:26 equity involvement respectively. The JV aims to develop and operate a state-of-the-art integrated waste management and energy generation facility.
The waste to energy (WtE) facility will utilize municipal solid waste from EDMC and various other zones. The location of the project is yet to be determined by the EDMC. The project will be set up on a Build Own Operate (BOO) basis according to technical and economic feasibility. The company also intends to explore the potential in the solid and liquid waste management market.
The JVC board will be structured based on the ratio of equity holding of the NTPC and EDMC. To start with, the board will involve three directors nominated from the NTPC and one director from EDMC.
Additionally, if the JVC issues any more shares, it will first and foremost allocate these shares to the current shareholders in proportion to the equity shares held by them, subject to the provisions of relevant laws.
If the equity capital of the JVC is being altered, the affirmative vote of at least one nominee director of each of the promoters will be necessary. None of the parties involved are related to either a promoter, promoter group or group companies by any means. The transaction will not fall within related party transactions.
Meanwhile, the Delhi Metro Rail Corporation (DMRC) is now sourcing power from a 12 MW waste to energy project set up by the East Delhi Waste Processing Company Limited (EDWPCL) in Gazipur, Uttar Pradesh. A total of 2 MW capacity will be supplied to the DMRC through this facility.
Earlier this year, the Delhi Electricity Regulatory Commission (DERC) stated that waste to energy generation projects in the national capital territory of Delhi would be exempt from certain applicable open access and deviation charges for intra-state scheduling purposes of procurement from these projects. The Delhi commission has stated that waste to energy projects in the NCT will be exempted from wheeling charges, transmission charges, regulatory asset surcharge, pension trust surcharge, and cross subsidy surcharge on the sale of electricity within the NCT under open access regulations.
Last year, the Ministry of New and Renewable Energy (MNRE) had approved a program that aims at creating conducive conditions and the environment with the fiscal and financial regime to develop, demonstrate, and disseminate utilization of wastes and residues for recovery of energy.
