HYDERABAD: The city's second garbage-to-power plant, RDF Power Projects Ltd, seems to have received a fresh lease of life with the Government clearing the plant and the Greater Hyderabad Municipal Corporation (GHMC) offering to use its power.

The plant is estimated to cost Rs. 82.5 crore and will use 700 metric tonnes of municipal solid waste (MSW) to generate 11 megawatts of power. It has been in the limbo for past few years with Transco refusing to sign the power purchase agreement (PPA).

Transco has cited high tariff as the reason and RDF had little option but to approach the Government for redressal as it had already invested a few crores of rupees, got pollution control board clearance and purchased 26 acres of land at Chinnaravupally, near Bibinagar.

RDF had also tied up with a foreign firm for technical assistance and been waiting to emulate the first garbage-to-power plant `Selco' at Shadnagar and running successfully armed with the PPA.

Official sources point out that the only way these power plants can function efficiently is to become captive power plants by selling substantial stake of up to 25 per cent to the civic bodies concerned. Yet, it would have to pay wheeling charges to Transco for using transmission lines. It remains to be seen as to how the GHMC and RDF renegotiate the deal. The GHMC wants to reduce its power bill for streetlights and also tackle the massive 2,500 metric tonnes garbage generated in the twin cities. Moreover, building landfills alone will be prohibitively expensive, as each landfill for 100 metric tonnes of garbage will cost Rs.15 crore and Rs.2 crore extra for maintenance.

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