The two state undertakings are following up project proposals with the ministry, FIs , state nodal agencies, state electricity boards (SEBs).So far, 67 sugar mills in major sugar-producing states have been identified as highly potential for surplus power generation through bagasse-based co-generation.

Fifty bagasse-based project proposals with aggregate capacity of 500 mw have been identified in nine major sugar-producingstates, according to a MNES report `Biomass power generation in India'.

"Further follow up by programme partners to help achieve financial closure has already commenced," it said. The programme partnership initiative (PPI) has helped to create conducive conditions for development of co-generation projects by bridging information gaps, preparing pre-feasibility report for sugar mills and facilitating in achieving financial closure with FIs.

Encouraged by the response to PPI, the ministry plans to expand the scope to cover other potential areas in biomass power generation including paper industry, rice milling industry, cotton, coconut, tea processing industry and all other agro processing industries, the report said.