Solid waste generated at domestic level is the single largest component of all wastes generated in our country. A number of research studies have shown that somewhere 300 to 600 gms of solid waste is generated per person per day in our country.

Eventually, Municipalities everywhere face the problems of waste collection, processing and disposal or treatment of voluminous solid waste produced by the cities. Moreover, the rains and humidity on the garbage promotes the bacterial multiplication and enhances the spread of infectious diseases. Due to their rich organic contents , the solid waste can be a good resource to produce manure & energy. It has been estimated that about 70 MW equivalent power could be generated from urban & municipal waste alone. This potential is likely to increase further with our economic growth.

Gujarat is a fast developing state and have huge gap in demand & supply of electricity generated by conventional sources. To reduce the gap partly non- conventional energy sources should be taped.

In order to recover energy from municipal solid waste (MSW) and liquid waste (MLW) , Gujarat Energy Development Agency (GEDA) Vadodara , had carried out the Pre-feasibility Studies in total seven cities ( i.e. Ahmedabad , Bhavnagar , Vadodara , Rajkot , Bhuj , Bharuch & Valsad ) under “National Programme on “Energy Recovery From Urban, Municipal & Industrial Wastes” launched by Ministry of Non Conventional Energy Sources (MNES) Govt. of India.

The Govt. of India has already announced a National policy of fiscal & financial incentives to private as well as Public Sector entrepreneurs and investors interested in setting up Urban & Industrial wastes based power projects on Build Own Operate & Transfer (BOOT ) , Build Own & Operate (BOO), Build Operate and Transfer (BOT) and on Build Operate Lease & Transfer (BOLT) basis.

Further , the State Government has also announced incentive policy /scheme of setting up MSW based power projects under the title “ Incentive scheme for energy Generation through Renewable Sources- 2001”.