BBMP to invest Rs 22 cr to build a bio-methanation plant in Yelahanka

After a long gap, the Bengaluru Solid Waste Management Ltd (BSWML) has proposed to build a bio-methanation plant in Yelahanka, which is estimated to cost Rs 22.44 crore. Given the retail cost of bio-CNG is higher than Rs 80 per kg, there is strong opposition to the proposal as the BBMP’s solid waste management arm expects an assured return of only Rs 94,500 a month from the project. 

As per the proposal, the BSWML will spend Rd 22.44 crore towards building a 50 tonne per day (TPD) capacity plant. It will also provide Rs 362 per tonne for processing the waste while the private player is expected to bear the equal amount as A part of operations and maintenance (O&M) of the plant. In return, the service provider is expected to pay Rs 425 per tonne to the BBMP from the revenue generated from selling the bio-CNG. 

Experts say one tonne of segregated solid waste with about 85% moisture is likely to yield 27 to 35 kg CNG. Going by this, the service provider stands to earn Rs 2,400 per tonne while he pays only Rs 425 to the civic body. 

Sources said the BBMP had estimated revenue of Rs 830 per tonne but it did not get a good response in the tender.

Experts felt the civic body should either provide capital expenditure or stay away from the project by allowing private players to invest and take the revenue. It makes no sense to spend Rs 22.44 crore and also invest in operations without expecting good returns, they said. 

Experts have always urged the government to invest heavily in bio-CNG plants but the civic body has not shown interest so far. They said that the only project they took up recently was not designed in the public interest.