Ghazipur ‘Waste-to-Energy’ Project: Centre approves Rs 122 crore for viability gap funding

The Central Government has approved Rs 122 crore in financial assistance for the proposed 2,000- TPD waste-to-energy plant by the Municipal Corporation of Delhi (MCD) at Delhi’s Ghazipur dumpsite, paving the way for the development of a major waste processing and power generation facility in the national capital.

The MCD has selected Jabalpur MSW Private Limited to develop and operate the facility under the public-private partnership (PPP) model. The total project cost is estimated at Rs 488 crore, with the Ministry of Housing and Urban Affairs providing Viability Gap Funding (VGF) under the Swachh Bharat Mission-Urban 2.0.

Moreover, the Delhi Electricity Regulatory Commission (DERC) has approved an electricity tariff of Rs 7.39 per unit for the project through its October 13 order. The proposed facility is expected to generate approximately 20 MW of electricity by processing 2,000 tonnes of municipal solid waste daily.

MCD Standing Committee chairperson Satya Sharma said the project would strengthen Delhi’s waste management infrastructure by adopting modern technologies for scientific waste processing and electricity generation.

Under the agreement, Jabalpur MSW Private Limited will be responsible for financing, constructing and operating the plant. The company will operate the facility for 25 years after the commencement of commercial operations. The MCD will provide land within the Ghazipur dumpsite premises on lease, subject to prescribed conditions.

The project is expected to be completed within 18 months of commencement of construction, with commercial operations targeted by December 2028.

The proposed facility is expected to reduce the burden on the Ghazipur landfill, one of Delhi’s major waste accumulation sites, by converting municipal solid waste into electricity. It will also support the city’s efforts to improve waste processing capacity, promote resource recovery and strengthen sustainable urban waste management.

The project marks another step towards integrating waste management with renewable energy generation in Delhi.