How Waste-To-Energy Policy Will Light Up Gujarat's Real Estate Industry

To facilitate the Centre's Swachh Bharat Abhiyan, municipal bodies are under immense pressure to keep cities clean and green. But a majority of civic bodies across the country have not been able to decode the puzzle called 'waste management'. In fact, a recent report by Delhi-based Centre for Science and Environment has named Chandigarh, a city famous for its cleanliness, one of the dirtiest cities in India, citing the city's 'poorly managed' garbage management system. The case of Chandigarh is an example of how poor garbage management policies can affect the image of a city.

However, waste management would soon cease to be a cause of concern for municipal bodies in Gujarat, as the state recently unveiled its Waste To Energy Policy, 2016. The policy will ensure solid waste is not only managed and disposed of properly but also put to best use for producing energy. The eight municipal corporations and 162 municipalities across Gujarat will benefit immensely from this.

The policy

Considering municipal solid waste (MSW) as a source of energy, the policy seeks to “systematically exploit” it for energy generation while ensuring it is disposed of in an environment-friendly way. The waste-to-energy projects, according to the policy, would help the state contribute significantly to the Centre's Clean India Mission. Authorities are of the view that this will also help reduce the land required for disposal of MSW which could be used for better purposes. According to state government estimates, the amount of solid waste generated across the municipal bodies can support power plants of around 100 Mw.

To ensure more and more people evince interest to develop plants for generating energy through MSW, the state has made the deal sweeter by offering several incentives. For instance, developers will be offered land at an annual lease price of Re 1. Also, MSW-based power projects will not be liable to pay any taxes, stamp duty or land allotment charges to urban local bodies. Urban local bodies will also be responsible for supplying MSW to these plans free of cost. These incentives are being provided to developers keeping in mind the fact that power generation through MSW will be costlier when compared with power generation through traditional methods.

The policy will remain in effect for five years after being notified. Those who win the bid to develop waste management plans in the city will avail of several benefits for a period of 25 years from the start of the operations or the life span of their projects, whichever is less.

How will this impact real estate in Gujarat?

The state of Gujarat is already a brand that few states in India can match up to. And that makes real estate here quite lucrative. Gujarat is known as investors' paradise for its business-friendly environment. Simpler land acquisition policies and civic operations only add to the overall ease the state provides to its citizens.

Now, by initiating a move under which it will utilise its own waste to light up the state, Gujarat has gone a step further in setting a new benchmark. While the waste-to-energy policy is a model for other states to follow, it will also ensure more and more people rush to have a piece of the cleaner and greener cities of Gujarat.