The ban on corporate firms purchasing agricultural land and restriction on the contract farming have put a break on the growth of renewapble energy sector in Karnataka, industry sources said.

Although the state government has been pushing the corporate firms to establish renewable energy projects in Karnataka, the firms are coming forward to promote projects only in wind energy sector but not in biomass or bio diesel segment due to availability of inadequate inputs.

According to statistics available with the state energy department, the government has given green signal to private players to start around 65 projects in biomass sector to generate 478 mw power. But so far the firms have established only 11 biomass projects generating a meager 81 mw.

Biomass is a renewable energy resource derived from the carbonaceous waste of various human and natural activities. It is derived from numerous sources, including the by-products from the timber industry, agricultural crops, raw material from the forest, major parts of household waste and wood.

The biomass and bio diesel projects were not taken in a big scale in Karnataka due to shortage of raw material or inputs, said S Chandrasekhar, convenor of Confederation of Indian Industry for Energy and Environment Committee. He said the firms could get inputs for bio mass and bio diesel projects only when they were allowed to do contract farming.

The government should also remove ban on corporate firms purchasing agricultural lands. If the firms could own agricultural lands, they can produce raw materials on their own, he added.

He also stressed that the government should take this into consideration when they release a new renewable energy policy in January 2009. According to K Jairaj, principal secretary for Karnataka energy department, the state-owned Power Company of Karnataka Ltd (PCKL) has floated tenders to set up bio mass plants in 105 taluks in the state. But the promoters are looking for higher price for the power produced through bio mass projects by matching the price offered in other states like Punjab and Tamil Nadu.

Currently power generated through bio mass accounts for only 4% of the total power generated through renewable energy in the state while wind power owns a 58% share followed by small hydro stations at 21% and Bagasse Cogeneration at 17%. A study conducted by Indian Institute of Science (IISc) reveals that the state has potential to produce about 950 mw of power through biomass projects in Karnataka.

Roadblock

• Ban on corporate firms purchasing agricultural land and restriction on the contract farming have put a break on the growth of renewable energy sector

•Firms are promoting projects only in wind energy sector but not in biomass segment due to availability of inadequate inputs