The Lucknow Municipal Corporation (LMC) is likely to finalise a transaction advisor for its proposed ₹600-crore waste-to-energy plant at Shivri within the next 15 to 20 days, taking the project toward the bidding stage, municipal commissioner Gaurav Kumar said on Sunday.
The civic body has also submitted a proposal to the Centre seeking financial assistance under the Urban Challenge Fund (UCF). Under the proposed funding structure, 25% of the project cost, or ₹150 crore, would come from the UCF, 10% or ₹60 crore from the LMC, and the remaining ₹390 crore from the private agency developing and operating the plant.
“The process of finalising the transaction advisor is underway and should be completed within 15 to 20 days. After this, a brief will be prepared for taking the project forward,” Kumar said.
The LMC floated a tender in April to appoint the transaction advisor, who will prepare the project framework and transaction documents before bids are invited from private players.
The proposed plant will come up on around 25 acres at the LMC’s existing solid waste management campus at Shivri on Mohan Road. It is planned to process 2,500 tonnes of waste daily and generate 25 MW of electricity.
{{/usCountry}}The proposed plant will come up on around 25 acres at the LMC’s existing solid waste management campus at Shivri on Mohan Road. It is planned to process 2,500 tonnes of waste daily and generate 25 MW of electricity.
{{/usCountry}}The project will be implemented under the public-private partnership (PPP) model through Design-Build-Finance-Operate-Transfer (DBFOT). The proposed project period is 33 years, including three years for construction and 30 years for operation and maintenance.
The plant is intended to process residual waste left after collection, segregation and material recovery. The LMC plans to use the combustible waste as feedstock for electricity generation.
According to the proposal, the plant is estimated to generate annual revenue of ₹142.40 crore, including ₹131.40 crore from electricity sales, ₹5 crore from recyclables and scrap and ₹6 crore from carbon credits. Annual operating expenditure is estimated at around ₹89 crore.
The project is currently at the planning stage. The LMC has prepared a pre-concept note, while the detailed project report, engineering drawings and several statutory approvals are pending.