The potential for wind power generation in the state is 500 mw, 75 mw for municipal solid waste and 1,000 mw for bagasse-based cogeneration projects.

Mantralaya sources told The Financial Express that these fiscal and non-fiscal incentives include transmission losses for wind energy to be borne by the Maharashtra State Electricity Board for the first three years.

MSEB will also initially bear the expenditure for erection of high tension sub station and transmission infrastructure and the Maharashtra Energy development Agency (Meda) will cater to the cost of constructing roads to the project sites.

Wind power projects will be granted status of small scale industries and Meda will give a 30 per cent subsidy of the fixed capital investment to the promoters subject to the condition that the wind power plant has successfully operated with a minimum 12 per centplant load factor for at least one year.

The developers will be entitled for relief in entry tax and octroi as these taxes will be reimbursed by Meda. Investment in plant and machinery, new building, land development, technical development and design in a wind power project would be considered as qualifying investment and the promoter will be entitled to sales tax benefits up to the amount of qualifying investment.

This benefit would be given in six equal installments over six years on the condition that the plant has successfully operated every year with a minimum of 12 per cent plant load factor. This benefit may also be available to any other company associated with the promoters. According to a recent survey conducted by Meda in association with MNES, New Delhi and IITM, Bangalaore, the potential for wind power generation in Maharashtra is about 400 mw.

MNES has identified 15 sites for wind power generation: Chalkewadi (Satara with wind velocity of 20.57 kmph), Gudepachgani (Sangli- 21.29 kmph),Kolgaon (Ahmednagar - 21.41 kmph), Kotoli (Kolhapur - 20.21 kmph), Lonavala (Pune - 17.66 kmph), Nadiwadi (Ratnagiri - 17.98 kmph), Thoseghar (Satara - 23.31 kmph), Vijaydurg (Sindhudurg - 20.59 kmph), Alamprabhu (Kolhapur - 21 kmph), Dhalgaon (Sangli - 22.10 kmph), Khandke (Ahmednagar - 21.10 kmph), Mhatrewadi (Satara - 20.80 kmph), Sautada (Beed - 21.60 kmph), Motha (Amravati - 18.90 kmph) and Vankusavade (Satara - 23.35 kmph).

Sources said that the developer will be allowed to sell power at Rs 2.25 per unit with 1994-95 base year and there will be five per cent escalation for the first 10 years. MSEB will allow 100 per cent banking upto the year irrespective of time and season to the private sector developer.

In case of municipal solid waste-based power projects, the potential is 75 mw with an investment of Rs 612 crore. The sites include Mumbai (5,500 tonne per day with power generation capacity of 55 mw), Pune (400 tonne per day - 4 mw), Solapur (300 tonne per day - 3 mw), Kolhapur (200 tonne per day- 2 mw), Pimpri-Chinchwad (200 tonne per day - 2 mw) and Kalyan (200 tonne per day - 2 mw).

The developers will be provided land by the municipal corporation on lease and solid waste will be supplied by the civic body at the site. The developers will get protection for fluctuation in excess of 5 per cent of the loan company and entitled to sales tax benefit up to 50 per cent of the qualifying investment.

For Bagasse-based projects, the potential identified is 1,000 mw. The state government has so far received 11 proposals with a total capacity of 332 mw.

In these projects, 40 per cent conventional fuel of the total generation will be allowed for which pass through was permitted. Third party sale will be allowed to any one party and these projects will be exempted for captive use.