New Delhi, Aug 3 - Use of farm waste can lead to generation of 18,000 MW of electricity every year, the Bangalore-based Indian Institute of Science has estimated.

The National Biomass Resource Atlas recently prepared by the institute estimates that there are 120-150 million tonnes farm waste that can be used for this purpose every year, Minister for New and Renewable Energy Farooq Abdullah informed the Rajya Sabha Monday.

Out of this potential, 1,870 MW are already being generated through 220 projects, while 170 more projects are being implemented to generate 2,170 MW more, the minister added.

There are a number of fiscal incentives for setting up of power generation projects from biomass throughout the country including capital subsidy linked with capacity and fiscal incentives such as concessional customs duty on import of machineries and components, excise duty exemption, accelerated depreciation on major components, relief from taxes and term loan from Indian Renewable Energy Development Agency (IREDA), and other financial institutions, Abdullah said.

Apart from this, 14 states give preferential tariff for sale of power from commercial biomass power projects.