You are on page 1of 124

S Shariq Ahmed

SOLID WASTE
Click to edit Master text styles

MANAGEMENT

INDIA

S Shariq Ahmed

SOLID WASTE MANAGEMENT IN INDIA

SOLID WASTE MANAGEMENT IN INDIA

S Shariq Ahmed

The Urbanising World


The 20th Century began with a population of 2 billion which increased to 6 billion population by the end of the century. The Century also witnessed the biggest exodus of human population from Rural to Urban areas
The global urbanisation level increased from 10% to 50% during the century; The world has turned urban with more than half the population living in urban areas

S Shariq Ahmed

Extra-ordinary Urban Growth in Less Developed Countries


600 Million people added to the worlds urban population between 1990-2000
Close to 3 million people are added in Asia alone every month, i.e. equivalent to one new City a month Of the 21 mega cities (popln. 10 million+) in the world today, 17 are estimated to be in developing countries

S Shariq Ahmed

World Population Trends


10000

Population in and developing (lesser developed) countries to be 88% of total population by 2050 (in millions)
9300

9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2000
Source:

6883 6100 5667(82%) 4900(80%)

8200 (88%)

2010

2020

2030

2040

2050

UN Population Division; WORLD POPULATION PROSPECTS Population Reference Bureau: WORLD POPULATION DATA SHEET

S Shariq Ahmed

Urbanisation Scenario in India


Decadal Growth Rate of Population (1991-2001) Urban: 31.13% Rural 17.97%
1500

Total
1200 900 600 330 M 300 50 M (16%) 0 1947 361

Urban
1 March, 2001, 11 May, 2000, 1000 M

1350 M

459 M 366.3 (34%) 285.35 (31.13%) 217.61 (27.78%) (25.71%)

62(17%) 1951 1961 1971 1981 1991 2001 2011 2021

S Shariq Ahmed

Urbanisation Scenario in India



Indias Population As per 2001 Census Urban Population Urban Areas (Cities / Towns) = 1027 Million

= =

285 Million 5161

S Shariq Ahmed

India: Urbanisation Scenario Metropolitan Cities/Agglomerations

80 60 40 20 0

No. of Cities/Agglomerations with more than 1 Million Population

35 23 5 9 1971 (37.8 % ) (33.0 % ) 2001

53

70

1951

1991

No.of Class-I Cities(> 1 Lakh) % of Urban Population

300 (1991) 65%

2011 2021 (Projected) )

S Shariq Ahmed

Trend Of Urbanization
Year 1951 Year 1991 3768 Year 2001 5161 Year 2021 --

Number of Urban Agglomerations / Towns Urban Population (in million)

2795

62.0

217.0

285.0 550.0

As percentage of total Population

17.3% 25.72% 27.8% 41%

S Shariq Ahmed

Magnitude Of Problem

Per capita waste generation increasing by 1.3% per annum

With urban population increasing between 3 3.5% per annum


Yearly increase in waste generation is around 5% annually India produces 42.0 million tons of municipal solid waste annually at present. Per capita generation of waste varies from 200 gm to 600 gm per capita / day. Average generation rate at 0.4 kg per capita per day in 0.1 million plus towns. Collection efficiency ranges between 50% to 90% of the solid waste generated.

S Shariq Ahmed

Magnitude Of Problem

Urban Local Bodies spend around Rs.500/- to Rs.1500/- per ton on solid waste management of which, 60-70% of the amount is on collection alone 20% - 30% on transportation Hardly any fund is spent on treatment and disposal of waste

Crude dumping of waste in most of the cities

S Shariq Ahmed

Quantity Of Waste Generation


Total quantity of solid waste generated in urban areas of the country
1.15 lakh tonne per day (TPD) % Of total garbage Waste generated in 6 mega cities Waste generated in metro cities (1 million plus towns) Waste generated in other class-i towns (0.1 million plus towns) 21,100 TPD 18.35%

19,643 TPD
42,635.28 TPD 83,378.28 TPD

17.08%
37.07% 72.50%

If waste produced in all class-i cities is tackled, percentage of waste scientifically managed would be 72.5% of total waste.

S Shariq Ahmed

Generation Of MSW(MT/Y)

S Shariq Ahmed

Types Of Solid Waste

Solid waste can be classified into different types depending on their source: Household waste or municipal waste: includes food, paper, cardboard, plastic, textiles, leather, glass, metal, ashes, electronics waste etc. Industrial waste: includes toxic chemicals, oil, debris from construction site, packaging waste, ashes etc. Biomedical waste or hospital waste: medicine bottles, expired medicines, syringes, medical instruments such as scissors, blades etc.

S Shariq Ahmed

Types Of Solid Waste

Solid waste can be classified into different types depending on their source: Agriculture waste: includes pesticides, crops, water coming from the fields also consists of small amount of toxic chemicals. Nuclear waste: includes radioactive substances coming from reactors, fuel (uranium, thorium, plutonium etc). Its highly dangerous and requires proper disposal. Hazardous waste: includes toxic chemical, acids, corrosive, ignitable and reactive materials, gases etc.

S Shariq Ahmed

Classification Of Wastes According To Their Properties

Bio-degradable can be degraded (paper, wood, fruits and others) Non-biodegradable cannot be degraded (plastics, bottles, old machines, cans, containers and others)

S Shariq Ahmed

S Shariq Ahmed

Solid Waste Composition

S Shariq Ahmed

Characteristics Of Municipal Solid Waste


Compostable / Bio-degradable matter = 30% - 55% (can be converted into manure) = 40% - 45% (to go to landfill) = 5% - 10% (Recycling)

Inert material

Recyclable materials

These percentages vary from city to city depending on food habits

S Shariq Ahmed

Physical Characteristics of typical Municipal Solid Waste in India


Contents
Paper Plastics Metals Glass Ash and Fine Earth Total Compostable matter

Available in %
4.68 0.71 0.64 0.45 40.03 38.75

S Shariq Ahmed

Physical Characteristics of typical Municipal Solid Waste in India


Characteristics
Moisture content Organic matter Carbon Nitrogen P as P2O5 K as K2O

% availability
25.2 23.4 13.08 0.58 0.66 0.70

S Shariq Ahmed

Composition of urban solid waste in Indian cities

S Shariq Ahmed

PRESENT STATUS OF WASTE MANAGEMENT

Storage of waste at source is lacking Domestic waste thrown on streets Trade waste on roads / streets Construction debris left unattended Bio-medical waste disposed in municipal waste stream Industrial waste disposed of in open areas

Segregation of recyclable waste at source not done Primary collection of waste not done at place of generation

S Shariq Ahmed

PRESENT STATUS OF WASTE MANAGEMENT



Design & location of municipal waste storage depots in appropriate, resulting in littering of garbage. Street sweeping not done everyday Waste transportation done in open vehicles Waste processing partially practised in 35 ULBs only

Final disposal done through crude dumping


Rag pickers collect recyclables from municipal bins/dumpsites and litter the waste causing insanitary conditions

S Shariq Ahmed

Reasons For Improper Management Of Waste



Lack of planning for waste management while planning townships Lack of proper institutional set up for waste management, planning and designing in urban local bodies Lack of technically trained manpower Lack of community involvement Lack of expertise and exposure to city waste management using modern techniques / best practices Lack of awareness creation mechanism Lack of Management Information Systems Indifferent attitude of ULBs to levy user charges and sustainability

S Shariq Ahmed

Urban Infrastructure Scenario in India

According to estimates of the Rakesh Mohan Committee total requirement for urban infrastructure development covering backlog, new investments and O&M costs for the next ten years is Rs. 2,50,000 Crores (US$ 57 Billion)
The ninth Plan proposal identifies only around Rs. 12000 Crores. With anticipated growth in Tenth plan providing additional funds of Rs.13,000 Crores, the total expected plan outlay comes to Rs. 25,000 Crores (US$ 5.7 Billion).

S Shariq Ahmed

Initiatives By Government Of India

Bio-medical Waste Handling Rules, 1998 - Notified

Municipal Solid Waste Management Rules, 2000 Notified.


Reforms Agenda (Fiscal, Institutional, Legal) Technical Manual on Municipal Solid Waste Management Technology Advisory Group on Municipal Solid Waste Management Inter-Ministerial Task Force on Integrated Plant Nutrient Management from city compost.

S Shariq Ahmed

Initiatives By Government Of India

Tax Free Bonds by ULBs permitted by Government of India

Income Tax relief to Waste Management agencies


Public-Private Partnership in SWM Capacity Building Urban Reforms Incentive Fund Guidelines for PSP and setting up of Regulatory Authority

S Shariq Ahmed

Initiatives By Government Of India

Introduction of Commercial Accounting System in ULBs & other Sector Reforms

Model Municipal Bye-Laws framed / circulated for benefit of ULBs for adoption
Financial Assistance by Government of India - 12th Finance Commission Grants

S Shariq Ahmed

Financing of Infrastructure Schemes

Budgets of Central Government State Governments Local Governments


Raising loans from LIC and other Financial Institutions Loans from International Funding Agencies like OECF(JBIC), World Bank, ADB, KfW, USAID, etc.

Grant funds from Donor Agencies like DANIDA, DFID, CIDA, National Trust/ Missions

Every One Crore rupees spent in infrastructural provision now, saves Ten Crore on cost escalation and public health care due to deficient services later!

S Shariq Ahmed

Some Innovative User pay Instruments


Infrastructure Type Innovative user pay Instruments

Water Supply

Advance registration charges, Connection charges, Enhancement of water tariff, Water benefit tax/water tax, Betterment charges, Development charges, Utilization from other sources such as octroi, property tax, sale of plots etc. and Charges from water Kiosks Connection Charges, Sewerage Cess Tax, Conservancy Tax, Sale of Renewable waste, Sale of Sludge and Sale of Nutrient rich wastewater. Collection Charges, Cess, Sale of Renewable waste, and Fines for dumping waste.

Sewerage
Solid waste

S Shariq Ahmed

Increased emphasis on Private Sector Participation in Urban Infrastructure

The imperative need for Private Sector Participation for:


Extended Resources

State-of-the-art Technologies
Efficient Project Management / Maintenance

S Shariq Ahmed

National Urban Renewal Mission

CENTRAL / STATE GRANTS ARE PROPOSED TO BE PROVIDED FOR SOLID WASTE MANAGEMENT

Grant Centre State

Loan

Cities with 4 million plus population Cities with one million plus population but less than 4 million Other cities

35%

15%

50%

50%
80%

20%
10%

30%
10%

S Shariq Ahmed

Route to Private Sector Participation

The concept of Public-Private -Partnership is generally seen as one of these models:


Build-Operate-Transfer (BOT) Build-Operate-Own-Transfer (BOOT) Build-Operate-Lease-Transfer (BOLT)

Rehabilitate-Operate-Transfer (ROT)
Design-Build-Finance-Operate-Transfer (DBFOT)

In INDIA full blown Private Sector Participation models have not been put into place, so far

S Shariq Ahmed

Options for Private Sector Participation (PSP)

However, the various options available, in order of increasing Private Participation in Water Supply & Sanitation Projects being taken up are:

Service Contracts Management Contracts Lease Concession

With experience and later on, through

BOT/BOOT etc. Divestiture

S Shariq Ahmed

Private Sector Participation in Water Utilities - Manila Experience

Successful involvement of Private Sector in Power Generation and Distribution; Largest effort in privatisation of Water utilities. Metropolitan Water Works and Sewerage System (MWSS) had covered only 67% population with intermittent water supply and 8 % with sewerage system in 1994. 56 % of 3000 mld supply was non-revenue water MWSS privatised in 1997 and split into two. Manila divided into two Zones - East and West. Two Consortia led by - BENPRES for West and AYALA for east -selected to run water works on 25 year franchise; Both Groups offered rates lower than the prevalent rate (8.78 pesos)

S Shariq Ahmed

Private Sector Participation in Water Utilities - Buenos Aires Experience



National Public Company OSN was in charge of water & sewerage. Unaccounted-for water was about 45% of production Objective of PSP: To reduce Government burden and minimise the price for service delivery Privatised in 1993 - Through Concession, thus effectively keeping the fixed assets under Public Ownership Single private firm to operate on 30 years concession period to be revived by re-bidding later Responsible to operate and maintain fixed assets and expand coverage and guarantee water quality Pricing to incorporate subsidy already existing, first price review after 5 years

S Shariq Ahmed

Improvements in Water and Sanitation Services after Awarding the Concession in Buenos Aires
Indicator Production capacity (millions cum/ day) Population served(M) Water Sewerage Employees per 1,000 connections Response time for repairs (hours) Meters in service Before the Concession (1992) 3.4 December 1995 Percentage change (%) 27

4.3

6.0 4.9 7,450 180 30,000

6.5 5.3 4,250 48 170,000

8.8 6.4 -43 -73 460

S Shariq Ahmed

Private Sector Participation in Water Utilities - Buenos Aires Experience

Reasons for success : Comprehensive and transparent bidding process - Two Envelope System Independent Regulatory Agency established by Government to monitor concessionaire, enforce the terms of contracts and regulatory specifications and levy fines where necessary Contract had provision for adjustment and re-negotiation during enforcement of concessional period (after 2 years the initial reduction of tariff partly withdrawn in view of more capital investment on system improvement, than originally estimated) Re-negotiation : transparent and stakeholders involved Tariff policy had a fixed portion to cover cost of infrastructure and a variable part proportional to consumption

S Shariq Ahmed

Indian Experience in Privatisation of Water Supply & Sanitation

Tiruppur Water Supply and Sewerage Project Implemented through a SPV New Tiruppur Area Development Corporation (NTADC) promoted by Infrastructure Leasing & Financing Services(IL&FS) Tiruppur Exporters Association (TEA) Tamil Nadu Corporation for Industrial Infrastructure Development (TACID)

Estimated Project cost - Rs. 900 Crores at 1998 prices (Rs. 1000 crore at present). O&M contract to consortium of Mahindra & Mahindra + United Utilities International, North West Water +Bechtel Attained financial closure with 10% stake by LIC & GIC.

S Shariq Ahmed

Indian Experience in Privatisation of Water Supply & Sanitation

Pune Water Supply and Sewerage Project Developed by Pune Municipal Corporation at a estimated project cost of Rs. 750 crores ($ 187.5 M) later revised to Rs. 392 Crores with HUDCO assistance Private Sector Participation envisaged in Construction, Operation and Maintenance, Tariff collection Financial Participation in addition to HUDCO expected from IL&FS, ICICI, HDFC, IDFC and Bank of Maharashtra Request for proposal sought Tie-ups: Anglian Water + Trafalgar House & Shirkes Binnie Black + Veatch & Thames Water + L&T Krugger + Generale Des eaux & Shanska Int. Preussag + Tata Projects Hyundai + Sundram Chemicals Hanjin + Krupp and Zoom Development Group Political Risk - work re-tendered at RfP level

S Shariq Ahmed

Indian Experience in Privatisation of Water Supply & Sanitation

Bangalore Water Supply Project BOOT arrangement for sourcing 500 mld water. Establishment of two Tertiary Water Treatment Plants (of total 60 mld capacity) with HUDCO assistance Private Sector (Industries) to undertake laying of feeder mains envisages provision of 500 mld of water to the city on a BOT basis with estimated project cost is Rs. 800 Crores (US$ 173 M).

S Shariq Ahmed

Indian Experience in Privatisation of Water Supply & Sanitation

Chennai Metro Water Out of 119 Sewerage Pumping Stations, Operation & Maintenance of 70 by private sector Sourcing of water in 7 wells through private sector Construction of 300 mld Water Treatment Plant by - M/s Hindustan Dorr Oliver Ltd. And O&M by M/s Richardson Cruddas New Chembarampakkam WTP of 530 mld capacity (over and above the existing 600 mld capacity) Bid documents for BOT by TCS

S Shariq Ahmed

Indian Experience in Privatisation of Water Supply & Sanitation

Private Sector Participation on the anvil in water supply & Sanitation Nagpur - Dewas Kolhapur - Cochin Vishakhapatnam - Dharwad Goa - Alandur Karnataka Urban Water Supply and Drainage Board (KUWS&DB) for Management Contract in Distribution and O&M

Towns Selected for the initiative are Mysore - Mangalore Hubli Dharwad - Gulbarga

S Shariq Ahmed

Privatisation experience in India in Solid Waste Management

ENBEE Infrastructure Ltd. on BOO basis in Nagpur

M/s Excel Industries Bio-degradation of solid waste in Vijayawada, Calcutta, Mumbai, Bhopal, Bangalore, Gwalior, Cochin & Calicut
M/s CELCO in Hyderabad

Common hospital waste treatment plant by GJ Multiclave in Hyderabad


Compost plant by IVR Enviro at Tiruppur

S Shariq Ahmed

Important issues in a BOT arrangement



Who are the parties to the contract ? What are the objects and scope of the BOT arrangement? What is the duration that might lead to early termination? What are the obligations of the BOT operator ? What are the obligations of the guarantor ? What are the key regulatory provisions ? How will the key risks be managed ? How will performance be measured and monitored ? How will the assets be transferred to the BOT operator? What are the consents required ? Who will be responsible for environmental liabilities ? How will disputes be resolved ?

S Shariq Ahmed

Countdown Steps for Structuring Private Sector Participation

Process Structuring and Stages countdown 09 08 07 06 05 04 03 02 01 00 Expression of Intent by Public Agencies Firming up the Project Contours (Consultants) Short-listing of Private Parties Project Description Report Pre-qualification of existing bidders Issue of Request for Proposal (RFP) Evaluation of Bids Negotiations Award of the Contract (Financial Closure) Commencement of Work

S Shariq Ahmed

Evolving Appropriate Organisational/Institutional Mechanisms

Legal and Regulatory Framework Simplification of Legislation Techno -Legal Regime (Australian Utilities Commission, U.K. initiativesOFTEL, OFWATS) over-arching legislation in the line of Federal Law of Philippines (BOT, BOO,etc) State/City Level Regulatory Bodies in India CERC / SERC in Power Sector TRAI (set to become CCI) in Telecom / ICE sector NHAI in highways sector Need for similar regulators in Urban Infrastructure

S Shariq Ahmed

Urban Infrastructure - Regulatory Authority

Utility & Shareholders

Users

Political Authorities

S Shariq Ahmed

The Regulatory Mechanism



Regulate prices Promote operating efficiency Specify and monitor service standards Control externalities Maintain public good functions Ensure asset serviceability Ensure development of essential infrastructure Prevent manipulation of land values Prevent unfair trade practices Promote efficient use Ensure responsiveness to final customer needs

S Shariq Ahmed

Model BOT Laws

Gujarat Infrastructure Development Act 1999 First State to formulate a separate act Draws from the experiences in Philippines Authorises the Govt./agencies to enter into concession agreements Provides a list of various forms of assistance to be provided to the developer including exemption of taxes etc.

Competitive bidding mandatory for ensuring transparency


The concession agreement to prescribe the user fee to be charged by the developer Need for replication in other States

S Shariq Ahmed

Infrastructure Authority

Infrastructure Authority formed under Infrastructure Development Enabling Act (IDEA), Andhra Pradesh Envisaged Roles for Infrastructure Authority: Conceptualisation of projects - Processing of the projects Mobilising public opinion - Advisory role to the government Co-ordination - Monitoring / approval of bidding Implementation of P-P-P-P - Prioritisation of projects Preparation of schedule. - Approval of TOR for consultancy Budgeting / financial allocation - Expedite clearances and permits Tariff fixing, user/abuser charges and cost recovery Model contract principles Supervision over implementation and project management Proposes a Swiss Challenge Approach for evaluating the single bid for projects brought by proprietary agencies

S Shariq Ahmed

Financing Options Matrix


S. No 1 Characteristics of Infrastructure Projects Issue(s) Options/ Alternatives

Capital intensive

Scarcity of Resources

Long Gestation period


Working Capital requirements based on Project Phasing

Asset Liability Mismatch


Overlapping of project implementn schedules

Inadequate returns and uncertainty on returns

High cost of funds, Defaults/NPA risk

Multilateral financing Consortium/Syndication Federal Govt. Guarantee with financial support Take out financing Long Term Borrowing Securitisation of receivables Flexible financing delinking construction stage from post-construction phase Cash flow financing Tax Incentives Priority Sector Lending Sub-ordinate debt finance Firm tariff policy Escrow Accounts Power Purchase Agreements Sinking funds

S Shariq Ahmed

Financing Options Matrix


S. No 5 Characteristics of Infrastructure Projects Issue(s) Options/ Alternatives

Long Term borrowing Multiple debt servicing obligations Lack of tangible assets and collateral/securi ty

Interest rate & Currency fluctuations High debt equity ratio Realization of loan amount on liquidation or default Lack of appraisal & operational skills Risk of en masse deployment

Interest Rate Swap Forward Rate Agreements Floating Interest Rates Sub-ordinate debt financing Equity infusion from strategic partners

Letters of comfort Pari passu charge on Escrow Account Bank Guarantees Joint Ventures Special Purpose Vehicles Venture Capital Funds Project Initialisation Funds

Varied expertise and advanced technology


Pioneering nature / Feasibility risk

S Shariq Ahmed

Consortium financing / Group lending

For capital intensive projects and greenfield ventures beyond lending capacity of single financial institution Pooling of resources for funding the project. Ensures sharing of the risks involved. Needs rationalisation and standardisation of appraisal procedures, lending guidelines and legal documentation of the constituent financial institutions Need for pari passu charge on the escrow account as security to the partner institutions. Desirable to provide a single window facility based on tripartite or joint agreements with the borrowing agency.

S Shariq Ahmed

Takeout Financing
Transfer of Loan Accounts

Fees / Commitment Charges

Primary Lender

Partner Institution

Outstanding Loan Amt. (Principal + Interest)

5 years

10 years

Liabilities of primary lender on project absolved at the end of a specified period Partner institution transfers pertinent loan accounts to its own books, in lieu of an agreed fee or commitment charge. Both parties bear the project risks after the take-out based on a nonrecourse structure. Pari passu charge on the escrow account as security option.

TENURE OF LOAN (15 years)

S Shariq Ahmed

Innovative Financing Mechanisms

Sub-ordinate (mezzanine) debt financing: Internal restrictions on equity participation by financial institutions, Lower equity and hence limited debt-equity ratio of new state level bodies for infrastructure projects restrict them from market borrowing on a large scale. Funding could be considered as deemed equity for a specific period granting the bodies better financial leverage Cashflow financing: Institutional funding to be tailor-made to suit the financial requirements at various stages of the project calling for cash-flow financing.

S Shariq Ahmed

Securitisation of Receivables
Loan

Lending Institution

Borrower

Repayments Outstanding Loan Portfolio

Pass Through Certificates

SPV
Fees

Investors

Periodic Cash Flows

S Shariq Ahmed

Securitisation of receivables

Conversion of future cash receivables into financial or debt instruments tradable in capital market Role of SPV as intermediary: assumes the entire credit risk on the securitised receivables of selected outstanding loan portfolio Insulates the lender from bankruptcy & insolvency risks repackages the receivables into pass-through certificates of manageable lots for onward trading in the secondary market. Principal and interest components of the repayments are passed on to the security owner.

S Shariq Ahmed

Securitisation of receivables

Merits to Investor: Continuous cash flow on Securitised instruments over the life of the loan and principal depletes over time. Advantages to Lending Institution: reduces the locking up of funds in a few projects. facilitates reduction in borrowings ensures better asset-liability management. provides efficient exit option for the financial institutions to transfer the risks of default and prepayment

S Shariq Ahmed

Municipal Bonds

In United States, account for nearly 70% of the capital financing for infrastructure. General Obligation Bonds (GO) Revenue Bonds Ahmedabad Municipal Corporation GO bond issue of Rs. 100 Crores Bangalore, Vijayawada and Ludhiana have already raised money through municipal bonds; Mumbai & Pune have obtained credit ratings; Kanpur Development Authority latest entrant

S Shariq Ahmed

Municipal Bonds

Problems faced: Since bonds can be raised over night within a short period and their utilisation may require 2-3 years, quite often, States/agencies tend to fall into the debt trap On account of the dire financial position, Credit Rating of agencies need to be enhanced to enable raising funds at lower costs.

S Shariq Ahmed

Facilitating Urban Local Bodies in Resource Mobilisation

Governments new strategy on the anvil for ULBs : Bond Bank Varying capacity levels of ULBs in obtaining high credit rating, lower borrowing costs, optimal resource utilisation & asset management Need for financial intermediary to pool the projects of the various agencies and float a common bond on the merit of the projects setting apart a reserve fund. Bond bank could be at the national level as a special purpose vehicle or as a subsidiary of the financial institutions.

S Shariq Ahmed

Facilitating Urban Local Bodies in Resource Mobilisation

Governments new strategy on the anvil for ULBs : Credit Line Making available requisite loan facilities for Urban Local Bodies and other agencies Challenge Fund For facilitating the States and Urban local bodies implementing the reform agenda

S Shariq Ahmed

Project Initialisation Fund/ Project Initiative Fund /Project Development Fund

PIF/PDF for creation of well structured projects Technically viable Financially feasible and bankable Environmentally sustainable

S Shariq Ahmed

Emerging State Level Initiatives for Financing Urban Infrastructure

State Level Urban Development Funds like TNUDF & MUDF in Tamilnadu Maharashtra, for facilitating private sector participation bringing in commercial orientation, improving financial management , assisting ULBs accessing capital markets. State level urban development Finance Corporations formed APUFIDCO - TUFIDCO KUDFC - KUIDFC Gujarat Municipal Finance Board Tax intercept concept introduced in Madhya Pradesh State for urban development loan servicing fund for local bodies.

S Shariq Ahmed

FDI in Infrastructure

Foreign Direct Investment(FDI) could be permitted through: Financial Collaborations Joint Ventures / Technical Collaborations Capital Markets via Global Depository Receipts (GDRs / Euro issues) Private Placements or Preferential Allotments In India, FDI upto 100% permitted in airports (beyond 74% with approval) and Mass Rapid Transit Systems.

S Shariq Ahmed

FDI in Infrastructure

FDI upto 100 % permitted in Integrated township development including housing, commercial premises, hotels, resorts City and regional urban infrastructure facilities Manufacture of building materials Development of Land with allied infrastructure as part of integrated township development Enabling guidelines required to prevent capital flight (lock in period) and regulate repatriation of profits in FDI

S Shariq Ahmed

Special Economic Zones



Proposal to set up Special Economic Zones (SEZ) in various parts of country as duty-free zones for industrial, service and trade operations to attract foreign investment and facilitate expeditious development. Proposal for a new SEZ at major Ports

The policy envisages the treatment of SEZs as priority areas in provision of infrastructure, convergence in statutory clearances, exemption from duties and levies as well as liberal regulations.
SEZs as industrial townships would need priority for integrated provision of infrastructure facilities.

S Shariq Ahmed

Imperatives for Sustainability in Infrastructure Financing

Development of Legal & Regulatory Institutional Mechanism Fiscal & Financial Framework Need for an Integrated Management of Urban Infrastructure & Intersectoral Co-ordination. Creation of a new Breed of Urban Managers sensitised and responsible for taking on the challenges in urban infrastructure. Curriculum up-gradation to provide not only technical inputs (Civil Engg.+ Transportation Engg. + Hydraulic engineering + Public Health Engineering ); but also Financial Engineering.

S Shariq Ahmed

Towards Sustainability in Infrastructure Development

Development of innovative financing and security mechanisms

Enabling Public-Private-Peoples-Partnerships (PPPP) and Government-Citizen Partnerships


General consensus on common national issues Role of the media creating awareness and disseminating best practices highlighting the deficiencies and pertinent issues Towards equitable mobilising unified public opinion and balanced attracting infrastructural investments Infrastructure development and protecting vulnerable interest groups / environment
economic growth.

S Shariq Ahmed

Vicious Circle to Virtuous Cycle


High Level of Infrastructure

Higher Investments

High Service Level

High Collection/ Recovery

Higher level Maintenance

Higher Willingness to Pay

S Shariq Ahmed

Recommended Approaches To Waste Processing & Disposal

Wealth from waste (processing of organic waste) Waste to compost (I) Aerobic / anaerobic composting (Ii) Vermi-composting Waste to energy (I) Refuse derived fuel (RDF) / Pelletization (II) Bio-Methanation Recycling of waste Sanitary landfilling

Treatment of bio-medical waste separately

S Shariq Ahmed

Various Technology Options Recommended For Waste Processing

Upto 50 metric tons / day(Mt/day) = Vermi-composting

Between 50 Mt & 500 Mt / day = Vermi-composting + mechanical composting


More than 500 Mt / day = mechanical composting + refuse derived fuel(RDF) from rejects keeping in view the type of the city (industrial or non-Industrial) or Bio-methanation

S Shariq Ahmed

Major Industry Players



Vertical Portals www.solidwaste.com www.swana.com Solid waste management equipment Hi-Rise Recycling Systems MotorVac Waste Connections

S Shariq Ahmed

Major Industry Players

Solid waste processing Barringer Labs Casella Safety-Kleen Waste Industries Waste Management Solid waste management consulting services Industrial Services of America Roy F. Weston, Inc.

(Note: Major players were largely determined by an article found at www.wasteinfo.com, http://biz.yahoo.com/prnews/000119/ny_wall_st_1.html, as well as company 1998 revenues)

S Shariq Ahmed

Targeted Customers

Vertical Portals All industry players Waste management professionals Solid waste management equipment Local government contracts Commercial and industrial companies Homeowners associations

S Shariq Ahmed

Targeted Customers

Solid waste processing Environmental consulting engineering firms, hazardous and low level radioactive waste treatment/disposal companies, public utilities, industrial companies (including mining companies) and various Federal, state and local government agencies. (barringer-labs.com) Solid waste management consulting service Industrial and government Other solid waste processing firms

S Shariq Ahmed

WTE in India

First ambitious program to encourage WTE launched in 1995 To demonstrate that WTE is possible Long-term target of producing 1700MW of energy from priority waste streams Operated under the aegis of National BioEnergy Board (NBB), Ministry of Non-conventional Energy Sources (MNES) Has an elevated status due to the contribution to reducing greenhouse gas emissions and in encouraging the integration of best practice waste collection and transfer to Energy 16 cost sharing projects ~ usage of Bio-methanation To establish a fiscal and financial regime necessary for WTE

S Shariq Ahmed

Energy from Waste

Potential of Power Generation in India from Waste Urban and Municipal Wastes : Industrial Wastes : (Dairy, Distillery, Press Mud, Tannery, Pulp and Paper and Food Processing Industries) TOTAL : 1000 MW 700 MW

1700 MW

Common perception WTE is most applicable to India Reduces waste by 60 - 90% Recovers resources Aids safe disposal of waste avoids pollution of land, water and air Reduces Greenhouse gases

S Shariq Ahmed

Is WTE the answer to Indias waste problem?

WTE technologies are regarded as unused, suspect technologies

WTE tech introduced in India so far are NOT based on a worldwide tried and tested model Technologies like biomethanation, incineration, combustion etc have toxic byproducts that cause serious environmental problems like Acid rain, fog

S Shariq Ahmed

Is WTE the answer to Indias waste problem?


Cost of a typical 5MW WTE plant ~ Rs 40 crores Consumption ~ 150 tons of urban waste for each MW of electricity

Which is an investment of Rs 8 crore per MW i.e., FOUR times cost of conventional Thermal power!!

And, the subsidy exceeds 50% of total project cost!

S Shariq Ahmed

WTE Projects in Maharashtra


Municipal Corporation Promoter
a) MSW Pvt. Ltd, Mumbai b) Waste Management Ind. Ltd, Mumbai c) EDL India Ltd, New Delhi

Capacity
14.98 MW 10.0 MW 21.0 MW

Municipal Council of Greater Mumbai

Kalyan Dombivali Municipal Not Finalised Corp


Pimpri-Chinchwad Municipal Corpn Soundcraft Indus, Mumbai TOTAL

5.52 MW 3.9 MW 51.88 MW

S Shariq Ahmed

WTE plant ~ Lucknow

5 MW Power Generation Project for MSW Promoter Asia Bio-Energy (A consortium of companies in Austria, Germany, Singapore and India) Technology BIMA (Biogas tech) from Austria plus some equipment from Germany Capacity 5.0 MW (nett), 5.6 MW (gross) power, 80 TPD manure Input waste About 500 TPD Project cost Rs 73 crore

S Shariq Ahmed

WTE ~ major processes involved

Pre-treatment: Removal of inerts / inorganic / non-biodegradable matter and homogenisation of feedstock Energy Recovery: Anaerobic Digestion / Gasification / Combustion Post-Treatment: Stabilisation of treated / processed material for final disposal / utilisation

S Shariq Ahmed

Methods Of Disposals

These are the following methods for disposal of the solid waste.

LAND FILLS INCINARATION BIOLOGICAL REPROCESSING RECYCLING OCEAN DUMPING PLASMA GASSIFICATION

S Shariq Ahmed

Solid Waste Management Hierarchy

S Shariq Ahmed

Land Fill

It is the most traditional method of waste disposal.

Waste is directly dumped into disused quarries, mining voids or borrow pits.
Disposed waste is compacted and covered with soil to prevent vermin and wind-blown litter. Gases generated by the decomposing waste materials are often burnt to generate power. It is generally used for domestic waste.

S Shariq Ahmed

Advantages

Landfill site is a cheap waste disposal option for the local council.

Jobs will be created for local people.


Lots of different types of waste can be disposed of by landfill in comparison to other waste disposal methods. The gases given off by the landfill site could be collected and used for generating power.

S Shariq Ahmed

Disadvantages

The site will look ugly while it is being used for landfill.

Dangerous gases are given off from landfill sites that cause local air pollution and contribute to global warming.
Local streams could become polluted with toxins seeping through the ground from the landfill site. Once the site has been filled it might not be able to be used for redevelopment as it might be too polluted.

S Shariq Ahmed

Land Required For Disposal Of MSW

S Shariq Ahmed

Emmision Of Methane From Landfill

S Shariq Ahmed

S Shariq Ahmed

Incineration

Incineration is a waste treatment process that involves the combustion of solid waste at 1000C. Waste materials are converted into ash, flue gas, and heat. The ash is mostly formed by the inorganic constituents of the waste and gases due to organic waste. The heat generated by incineration is used to generate electric power.

S Shariq Ahmed

Advantages

Minimum of land is needed compared to other disposal methods.

The weight of the waste is reduced to 25% of the initial value.


No risk of polluting local streams and ground waters as in landfills. Incineration plants can be located close to residential areas. Gases are used to generate power.

S Shariq Ahmed

Disadvantages

Expensive

Required skilled labour.


The chemicals that would be released into the air could be strong pollutants and may destroy ozone layer (major disadvantage). High energy requirement

S Shariq Ahmed

INCINERATION PLANT OBERHAUSEN, GERMANY

S Shariq Ahmed

Ocean Dumping

Ocean dumping is the dumping or placing of materials in the ocean, often on the continental shelf. A wide range of materials is involved, including garbage, construction and demolition debris, sewage sludge, dredge material, waste chemicals, and nuclear waste. Sometime hazardous and nuclear waste are also disposed but these are highly dangerous for aquatic life and human life also.

S Shariq Ahmed

Advantages

Convenient

Inexpensive
Source of nutrients for fishes and marine mammals. Vast amount of space is available. All type of wastes are disposed.

S Shariq Ahmed

Disadvantages

There are three main direct public health risks from ocean dumping:

Occupational accidents, injuries, and exposures


Exposure of the public to hazardous or toxic materials washed up on beach sand. Human consumption of marine organisms that have been contaminated by ocean disposal. Highly dangerous for aquatic life.

S Shariq Ahmed

S Shariq Ahmed

Biological Reprocessing

Materials such as plants, food scraps, and paper products can be decomposed into the organic matter. The organic matter that is produced from this type of recycling can then be used for such things as landscaping purpose or agricultural uses.

Usually this method of recycling is done by putting the materials in a container and let to stay there until it decomposes.

S Shariq Ahmed

Recycling

It is basically processing or conversion of a waste item into usable forms.

Recyclable materials include many kinds of glass, paper, metal, plastic, textiles, and electronics.
But recycling is not a solution to managing every kind of waste material. For many items like plastic bags, plastic wrap, yogurt cups, margarine container etc. recycling technologies are unavailable or unsafe.

S Shariq Ahmed

Advantages

Reduction of air and water pollution.

Reduction in the release of harmful chemicals and greenhouse gases from rubbish.
Saves space required as Waste Disposal Landfill. Reduce financial expenditure in the economy.

It helps in conserving a lot of energy resources like petroleum and coal deposits.

S Shariq Ahmed

Saving Through Recycling

When aluminium is recycled - considerable saving in cost.

Making paper from waste saves 50% energy.


Every tone of recycled glass saves energy equivalent to 100 liters of oil. Recycling about 54 kg of newspaper will save one tree.

S Shariq Ahmed

MATERIAL ALLUMINIUM CARDBOARD GLASS PAPER PLASTIC STEEL

ENERGY SAVING 95% 24% 5-30% 50% 70% 60%

S Shariq Ahmed

Process Of Recycling

COLLECTION: The first step required for recycling is collecting recyclable materials from communities. Today many major cities and larger communities offer a curbside pick up service for recyclable materials. SORTING: The second step involves processing the recyclable materials. This includes sorting the materials into groups, cleaning them and getting them ready to be sold to manufacturers who will turn the materials into new products.

S Shariq Ahmed

Process Of Recycling

MANUFACTURING: It is the third step in the recycling process. The collected material is sent to industries those convert them into new products. PURCHASING: The last step involves the purchasing of recycled products. When consumers purchase products that have been made with post consumer material the recycling process has been completed and then can be repeated.

S Shariq Ahmed

Recycling Not A Solution To All Problems!

Recycling is not a solution to managing every kind of waste material

For many items recycling technologies are unavailable or unsafe


In some cases, cost of recycling is too high.

S Shariq Ahmed

What Should Be Done?

S Shariq Ahmed

Plasma Gassification

Plasma gasification is a new garbage disposal solution using plasma technology. Uses electrical energy and the high temperatures (4000C to over 7000C) created by an plasma torches.

Almost completely breaks down the waste into syngas which are used to generate electricity.
The remaining material (slag) is used to produced material for building projects.

S Shariq Ahmed

What Is Plasma?

Fourth state of matter.

It is an ionized gas at high temperature, capable of conducting current due to free electrons. Created by applying an electric arc to a lowpressure gas.
Lightning is an example from nature.

S Shariq Ahmed

Plasma Torches

Consists of a tungsten rod (cathode) and a water-cooled copper (anode). Shaped in the form of a nozzle. Gas is introduced in the electrode gap and a dc arc is established between the electrodes to create plasma.

S Shariq Ahmed

How Plasma Gassifire Works?

CONVEYER SYSTEM: Garbage is loaded on the conveyer belt. Pushes into the pretreatment system by means of plunger. PRETREATMENT MECHANISM: Use to make the entire system more efficient. Use grinders or crushers to reduce the size of the pieces of waste. Plasma torch can break down the smaller pieces faster.

S Shariq Ahmed

How Plasma Gassifire Works?

S Shariq Ahmed

Furnace

Furnaces have an airlock system to allow garbage to come in while preventing the hot gases from escaping into the atmosphere. Have multiple torches to break down all the matter into gases and slug. Also features a drainage system to tap off the slag and a vent system to vent out the gases. To withstand the intense heat, furnaces are lined with refractory material and often have a water-cooling system as well.

S Shariq Ahmed

Furnace

S Shariq Ahmed

Slug Drainage

Molten slag at the bottom of the furnace and helps in maintaining the high temperature inside the chamber. Occasionally slag must be drained from the furnace. Slag drains away from the furnace and cools in a separate chamber. Slug is also used to produce some building materials.

S Shariq Ahmed

Slug Drainage

MOLTEN SLAG DRAINING FROM A PLASMA FURNACE

S Shariq Ahmed

After Burning

Gases can pass through a secondary chamber where natural gas flames combust any remaining organic material in the gases. These extremely hot gases then pass through a Heat Recovery Steam Generator (HRSG) system.

Where they heat water to form steam.


This steam then turns a steam turbine to create electricity.

S Shariq Ahmed

After Burning

S Shariq Ahmed

Byproducts Of The Process

SYNGAS: A mixture of several gases but mainly comprises hydrogen and carbon monoxide. Can be used as a fuel source. SLUG: Solid byproduct from the gasification process. The weight of the slag is about 20 percent of the weight of the original waste. The volume of the slag is about 5 percent that of the original waste volume

S Shariq Ahmed

Conclusion the millions of dollars in investments slated for incineration systems into waste prevention and reduction and zero waste systems that
The key to healthy communities is to redirect

return on investments and economic development opportunities


both

maximize

S Shariq Ahmed

www.allied-group.co

Plot No.293,Kehar Singh Estate West end Marg, Opp.D Block Saket, Saidula Jab, New Delhi-110030 Contact No. - 011 40506600 Facsimile - 011 40506636 Website www.allied-group.co