IT WAS great use of refuse when the Punjab Energy Development Agency commissioned a waste-to-energy project near Ludhiana. The plant was to utilise 235 tonnes of cattle dung daily to generate about 1 megawatt (MW) of power. With India generating an estimated 30-42 million tonnes of solid waste and 4,400 million cubic metres of liquid waste annually, the waste-to-power potential is pegged at 1700-2500 MW.

The potential is huge, which is why big players such as Jindal SAW, the GMR Group, and Infrastructure Leasing & Financial Services, and waste management companies such as Ramky and A2Z are taking an active interest in this area. But the quality of waste, high rates and the lack of an integrated approach hinder sustained development. The Ludhiana project, for instance, is struggling to convince people to sell dung to the factory instead of on the open market. Also, most waste management firms demand a tipping fee from municipal bodies to collect, transport, and dispose the waste, which can go up to Rs 500 per tonne.

The way out of the mess is to set up exchanges where municipal waste becomes a commodity and is traded on the bourses. The idea is similar to the Eastex National Materials Exchange in Britain, an online marketplace that helps interested parties check the availability and prices of waste. Local municipal bodies provide data on the type, quantity and price of waste in that area.

India needs such exchanges as they ensure transparency. “Trading is certainly an option. As the private organised players settle in the sector, trading will take off,” says Ravi K. Dhulipala, country general manager, GE Jenbacher, a division of GE Energy supplying engines for waste-toenergy power plants. Let man propose and dispose for once.