Tough luck

Patna, Jan. 16: The five power surplus sugar factories in the state would miss out on around Rs 7 crore encouragement money from the Centre this financial year for the alleged failure of the state government to issue them renewable energy certificate.

A source in the state sugar industry said the five factories at Sidhwalia, Haringar, Narkatiaganj, Lauria and Sugauli would not be able to claim the money because of the alleged lackadaisical approach of Bihar Renewable Energy Development Agency (Breda) — the nodal agency for framing rules for the registration of the sugar factories using renewable energy and supplying a part of it to the state power board. It is also supposed to issue the renewable energy certificate to the sugar factories after due verification.

The source said: “The Centre came out with a set of rules according to which the industrial units producing green energy for self-consumption and providing it to others would get encouragement money at the rate varying between Re 1 and Rs 1.50 for every unit of power consumed by them. But they would have to procure renewable energy certificate from Breda for claiming this money.”

In the light of the central rule, the Bihar Electricity Renewable Commission issued a notification in November 2010, but the related rules for registration and issuance of renewable energy certificate had not been made by Breda till date.

As the sugar factories use bagasse — a renewable source of energy — for producing electricity, they qualify for the encouragement money. Representatives of the factories at Harinagar, Sidhwalia and Narkatiaganj approached Breda last July for registration. But their requests were turned down, as the rules had not been framed then.

“We have been pursuing the issue on a regular basis since then but Breda has not yet not finalised the rules, denying us the registration. We are set to be denied the benefit of the Centre’s initiative this year because only after registration with the nodal agency any claim can be made,” said the source.

“We have sugar factories in Uttar Pradesh also. We are getting the benefits of the central rule there because the UP government has put in place the requisite system. But we are not being allowed to avail this benefit in Bihar,” added the source.

Admitting that Breda had not yet finalised the rules, state energy department principal secretary Ajay V. Nayak said: “The rules would be finalised within a fortnight. Breda had earlier framed a rule and had sent it for our approval. Certain changes have been suggested in it. They would be incorporated in the revised rules. Once finalised, they would be sent for approval.”

Bihar Electricity Renewable Commission would approve the rules.

Those having stakes do not appear much enthusiastic about assurance given by the principal secretary.

“Had the energy department been really serious about this issue, it would have not allowed this process to linger so long. We are set to lose the benefits of the Centre’s initiative this year and hope that the same would not happen next year,” said a senior official of one of the three sugar factories which approached Breda in July last year for getting themselves registered.

The sugar mills at Sidhwalia, Haringar, Narkatiaganj, Lauria and Sugauli provide over 30 MW of electricity to the Bihar State Electricity Board during the crushing season usually starting in the last week of November. The season lasts for about 120 days.