Government of Karnataka issued Discussion Paper on Fixation of Norms and determination of Tariff for FY26 for procurement of Power from Municipal Solid Waste based power Generating Plants

Mar 20, 2025 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Government of Karnataka on March 05, 2025, issued Discussion Paper on Fixation of Norms and determination of Tariff for FY26 for procurement of Power from Municipal Solid Waste based power Generating Plants.

The development of Renewable Energy (RE) has gained importance with the Electricity Act, 2003, and the National Action Plan on Climate Change (NAPCC). Waste management, despite improvements from the Swachh Bharat Mission, remains a challenge. Waste-to-Energy (WTE) technologies, particularly RDF combustion and incineration, are promising but require high-quality waste. Since 2016, the Karnataka Commission has been promoting WTE projects, setting a generic tariff of Rs. 7.08 per unit for power from MSW plants, valid for 20 years. However, projects by MSGP Infra Tech and Saatarem Alternative Fuel remain uncommissioned, while Karnataka Power Corporation Limited (KPCL) has completed an 11.5 MW project ready for commissioning. The Commission aims to determine the tariff for WTE projects with PPAs executed in FY 2025-26 (FY26).


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