Japan-based JFE Engineering Corporation has invested ₹43 crore to acquire 25 per cent stake in the special purpose vehicle promoted by Antony Waste Handling Cell for two waste-to-energy projects in Andhra Pradesh.
This marks the first Japanese foreign direct investment in India’s waste-to-energy sector and JFE Engineering Corporation’s entry into India’s waste management market.
JFE Engineering will also undertake the engineering, procurement and construction of both waste to energy plants at Kadapa and Kurnool.
Jose Jacob, Chairman and Managing Director, Antony Waste Handling Cell said the cumulative investment in both the projects works out to ₹650- 700 crore and has the potential to add a turnover of ₹3,200 crore per annum for 20 years.
The company has tied up the equity portion and 70-75 per cent of the project cost will be funded through debt.
The paper work for land will be completed by April-end and construction will start in Kurnool mid-May while in Kadapa it should begin by June 15, he added.
Both sites will generate 15 MW each and process 1,000 tonnes of waste. The company will consume 2 MW of power internally and the rest will be sent to the grid.
The plant load factor will be around 80-85 per cent and a power purchase agreement has been signed for sale at ₹8.10 per unit.
The project can be replicated in any regions with a population of about 10 lakh population and generate about 1,000-1200 tonnes of waste. It requires 15 acres of land.
The country generates 150,000 tonnes of garbage per day and of this less than 5 per cent goes for waste-to-energy facility, he said.
Currently, the company has two projects in Pune and Mumbai.
Anthony Waste Handling Cell has recently entered into the business of recycling construction and demolition waste for converting it into valuable resources.
“For last 25 years, the company has been in the business of collecting and transportation of municipal solid waste and processing the waste. We have just entered the new vertical of construction waste collection and processing,” he said.
Akira Usui, Director of Recycling Business Promotion Division, Environmental Solutions Sector, JFE Engineering Corporation said the investment reflects the company’s strong belief in India’s waste-to-energy opportunity and in Antony Waste as a trusted and capable partner.
The first investment in India’s waste sector underscores long-term commitment to bringing advanced technology and engineering excellence to support sustainable infrastructure development in the country, he added.