Antony Waste Handling Cell has announced the incorporation of a step-down subsidiary to execute a 15 MW waste-to-energy project in Andhra Pradesh.

The company’s material subsidiary, Antony Lara Enviro Solutions, has incorporated a special purpose vehicle (SPV) under the name Kadapa Renew Energy to implement the project.

The new entity will develop the 15 MW waste-to-energy project awarded by the New and Renewable Energy Development Corporation of Andhra Pradesh. The project involves processing municipal solid waste through a material recovery facility and the incineration of waste at a waste-to-energy facility.

Kadapa Renew Energy is a newly incorporated company and has not yet commenced business operations. Antony Lara holds 100% equity in the SPV. Since Antony Waste Handling Cell holds a 73% equity stake in Antony Lara, the company effectively has a 73% indirect stake in Kadapa Renew.

In a regulatory filing, Antony Waste Handling Cell disclosed that the SPV’s incorporation is not a related party transaction and has been funded through initial capital subscription in cash by Antony Lara. The disclosure confirmed that no acquisition cost is applicable, as the intimation pertains solely to incorporation. The new entity does not have any turnover as operations are yet to commence.

In addition to waste-to-energy, Antony Waste Handling Cell offers a range of waste handling services. These services include waste collection and transportation, mechanized and non-mechanized sweeping, waste processing and treatment, and construction and demolition waste management.

Recently, the Ministry of Finance announced a reduction in GST for waste-to-energy projects and devices, as well as biogas projects, from 12% to 5%. The reduced GST rates were announced at the 56th meeting of the GST Council.

Last October, Indian Oil Corporation entered into a joint venture agreement with EverEnviro Resource Management to convert organic waste into compressed biogas. The agreement would help form a 50:50 joint venture company to advance biofuel adoption nationwide.