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Friday / May 24. 2024
HomeAgrotechADB, SAEL industries sign $91 Mn loan agreement to promote biomass generation in India

ADB, SAEL industries sign $91 Mn loan agreement to promote biomass generation in India

ADB’s support will fund the construction of five 14.9-megawatt biomass power plants in the districts of Bikaner, Churu, Hanumangarh, Jhunjhunu, and Sikar in the state of Rajasthan

The Asian Development Bank (ADB) and SAEL Industries Limited have signed loan agreements of up to 7.5 billion Indian rupees (around $91.14 million) to promote the generation of biomass energy using agricultural residue, helping diversify India’s energy mix and reduce carbon intensity. 

ADB’s support will fund the construction of five 14.9-megawatt biomass power plants in the districts of Bikaner, Churu, Hanumangarh, Jhunjhunu, and Sikar in the state of Rajasthan. Around 1.5 billion Indian rupees for each power plant will be provided to subsidiaries of SAEL Industries: Chattargarh Renewable Energy Private Limited, KTA Power Private Limited, Sardarshahar Agri Energy Private Limited, TNA Renewable Energy Private Limited, and VCA Power Private Limited. 

“Establishing biomass power plants that can repurpose agricultural residue will help protect the environment while contributing to the government’s goal of expanding renewable energy sources and reducing carbon dioxide emissions. It will also help increase the income of local farmers through sales of agricultural residue and reduce the burning of agricultural waste, contributing to the improvement of air quality,” said Ashok Lavasa, ADB Vice-President for Private Sector Operations and Public–Private Partnerships. “ADB’s assistance will have a powerful demonstration effect for biomass power by helping reduce risk perceptions and by creating awareness of its benefits and potential for use in other rural communities and developing member countries.”

The power plants will convert about 650,000 tons of agricultural residues into electricity and are expected to generate 544 gigawatt-hours of energy per annum, helping avoid up to 487,200 tons of carbon dioxide annually. Local farmer incomes will rise through the sale of agricultural residue. The project also aims to purchase agricultural residue and other goods and services from at least 100 women-owned microbusinesses and 10 women’s self-help groups.

“By collecting the crop stubble to be used as fuel in our waste-to-energy plants, we help combat one of our nation’s greatest health issues, while simultaneously creating local employment and generating extra income for farmers and local entrepreneurs. We are happy to have ADB partnering with us in these efforts,” said Jasbir Singh, SAEL Industries Chairman and Managing Director.

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