Lok Sabha Question No. 3824 (UNSTARRED), answered on 2018-08-09
Subject: Subsidy Policy for Renewable Energy Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: SUKHBIR SINGH JAUNPURIA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO-3824

TO BE ANSWERED ON-09.08.2018

## SUBSIDY POLICY FOR RENEWABLE ENERGY SECTOR

## 3824. SHRI SUKHBIR SINGH JAUNAPURIA

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:-

- (a) whether the Government has initiated/is contemplating to initiate a better subsidy policy for renewable energy sector;
- (b) if so, the details thereof;
- (c) whether the Government has formulated/is considering to formulate a new cheap renewable energy investment policy to reduce the cost of renewable energy units;
- (d) if so, the details thereof; and
- (e)  the  number  of  families  in  Tonk-Sawai  Madhopur  district  of  Rajasthan  benefited  by  the  above-mentioned policies during the last three years?

## ANSWER

## THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (I/C) (SHRI R.K. SINGH)

(a & b) The Government is implementing various schemes/programs to promote development and deployment of renewable  energy  in  the  country.  The  Central  Financial  Assistance  (CFA)  incentives/subsidies  being  provided vary  from  scheme  to  scheme  for  approved  time  period  as  per  the  scheme/program.  The  details  CFA/ incentives/subsidies being offered presently under various schemes/programs of Ministry of New & Renewable Energy are given in the Annexure .

- (c & d) The Government has taken various steps to reduce the cost of renewable energy. These, inter-alia, include the following:
- (i) Announcement of a target of installing 175 GW of renewable energy capacity by March, 2022;
- (ii) Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2021-22;
- (iii) Fiscal & financial incentives such as Capital Subsidy, Viability gap funding (VGF), accelerated depreciation benefits,etc;
- (iv) Permitting 100% Foreign Direct Investment (FDI) under the automatic route in renewable energy sector;
- (v) Issued guidelines for procurement of solar and wind power through tariff based competitive bidding process;
- (vi) Waiving of Inter State Transmission System Charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to March, 2022;
- (vii) Raising funds from bilateral and multilateral finance and development institutions;
- (viii) Implementation of Green Energy Corridor project to facilitate integration of large scale renewable generation capacity addition.
- (e)  As  per  Rajasthan  Renewable  Energy  Corporation  Limited,  197  households  of  Tonk  district  have  been benefitted  through  solar  photovoltaic  (SPV)  off  grid  domestic  lighting  systems.  Further,  558  farmers  of  Tonk district and 78 farmers of Sawai Madhopur district have been benefitted through solar water pumping scheme.

*****

## ANNEXURE

## Annexure referred to in reply to parts (a&b) of Lok Sabha Un-starred Question No. 3824 for 9/8/2018 regarding ' Subsidy Policy for Renewable Energy Sector' CFA/Subsidies/Incentives being provided for the development & deployment of various renewable energy sources

## A.     GRID-INTERACTIVE RENEWABLE POWER PROGRAMMES:

| Wind Projects                                                                                                                                                                                       |                                                                | Accelerated depression benefits upto 40%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. Solar Power Projects.                                                                                                                                                                            | 2. Solar Power Projects.                                       | 2. Solar Power Projects.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| a) Solar PV Power projects under Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II, Batch-I of total 750 MW with Viability Gap Funding (VGF) support from National Clean Energy Fund (NCEF). | Minimum Project Capacity10MW Maximum Project Capacity50MW      | VGF support up to 30% of Project Cost limited or maximum of Rs.2.50 Cr/MW whichever is less, based on reverse bidding process for power producers.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b) Grid Connected Rooftop Solar PV Power Projects in residential, institutional and social sector                                                                                                   | Benchmark of Rs 60 to 70 per watt depending upon the capacity. | Central Financial Assistance (CFA) up to 30% of benchmark cost for the General Category States/UTs and up to 70% of benchmark cost for Special Category States/UTs, i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands is provided to consumers for installation of grid connected solar rooftop projects. Incentives are also provided for promotion of roof top SPV power in Government sector. No subsidy is provided for commercial and industrial establishments in private sector. |
| c) Grid connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs).                                                                                                            | Total size of the scheme 1000MW.                               | VGF support to the CPSUs/Govt. Of India Organizations at a fixed rate of Rs.1 crore/MW for projects where domestically produced cells and modules are used and Rs. 0.50 crores/MW in cases where domestically produced modules are used.                                                                                                                                                                                                                                                                                                                                    |
| d) Grid-connected Solar PV Power plants on Canal Banks and Canal Tops                                                                                                                               | 1MWto10MW                                                      | Rs 1.5 Crore/MW for Canal Bank and Rs 3.0 Crore/MW for Canal Top Projects, subject to 30% of the project cost in both the cases.                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| e) Solar Park Scheme                                                                                                                                                                                | --                                                             | 25 lakh per Solar park for preparation of Detailed Project Report(DPRs).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

|                                               | 20 Lakh per MWor 30% of the project cost including Grid-connectivity cost, whichever is lower                                   |
|-----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| f) Solar PV scheme for Defence Establishments | Tender issued before 17/02/2017- VGF support is 2.50 cr/MW Tender issued after 17/02/2017- Rs 1.1 crore / MWfor all capacities. |

## 3.  Small  Hydro  Power  (SHP)  Projects: (valid  for  the  projects  commenced  on  or  before  31-032017)**

## Support to new SHP projects (producers) in Government sector :

| Category                                     | Above 100 KWand up to 1000KW   | Above1MW-25MW                                   |
|----------------------------------------------|--------------------------------|-------------------------------------------------|
| Special category (J&K, HP &UK) and NE States | 75,000 per KW.                 | 7.5 Crores / MWlimited to 20 crore per project. |
| Other States                                 | 35,000 per KW.                 | 3.5 Crores / MWlimited to 20 crore per project. |

## Support to new SHP projects (producers) in private / co-operative / joint sector:

| Areas                                                         | Upto25MW                                       |
|---------------------------------------------------------------|------------------------------------------------|
| N E Region, J &K, H.P. &Uttarakhand (Special Category States) | 1.5 crore/ MWlimited to 5.00 crore per project |
| Other States                                                  | 1.0 crore/ MWlimited to 5.00 crore per project |

## Renovation and Modernization :

| for Government Sector projects   | Rs 1.00 crore/MW limited to 10.00 crores per project.   |
|----------------------------------|---------------------------------------------------------|

## 4.BIOMASS BASED COGENERATION IN SUGAR MILLS AND OTHER INDUSTRIES IN THE COUNTRY (UP TO MARCH 2020)

| Type of Project                                  | Rate of CFA                                          |
|--------------------------------------------------|------------------------------------------------------|
| Bagasse Cogeneration in Sugar Mills              | Rs 25 lakh/MW calculated on surplus exportable power |
| Biomass( Non-bagasse) Cogeneration in Industries | Rs 50 laks/MW calculated on installed capacity       |

## 5.  Waste to Energy Projects:

| Type of Waste         | Central Financial Assistance to Producers                    |
|-----------------------|--------------------------------------------------------------|
| Municipal Solid Waste | Rs.2.00cr./MW, Max. Support 10 Cr. /project.                 |
| Urban Waste           | Rs.2.00cr./MW, Max. Support 5 Cr. /project.                  |
| Industrial waste      | Rs. 0.20cr to Rs. 1.00cr/MW, Max. Support Rs.5.00cr/project. |

## B.     OFF-GRID / DECENTRALIZED RENEWABLE ENERGY PROGRAMMES:

Central  Financial  Assistance  under  the  New  National  Biogas  and  Organic  Manure  Programme, (NNBOMP) w.e.f.  01.04.2018 for the Medium Term Plan of 14 th Finance Commission up to March, 2020 for Biogas Plant size from 1 cu.m.to 25 cu.m. per day.

## 1. New National Biogas and Organic Manure Programme, (NNBOMP) w.e.f.  01.04.2018

| Sno   | Particulars of Central Financial Assistance (CFA) and States / UTs, Regions &Categories of beneficiaries                                                                     | Biogas Plants under NNB OMP (size 1 to 25 cubic metre biogas per day) (In Rupees per plant )   | Biogas Plants under NNB OMP (size 1 to 25 cubic metre biogas per day) (In Rupees per plant )   | Biogas Plants under NNB OMP (size 1 to 25 cubic metre biogas per day) (In Rupees per plant )   | Biogas Plants under NNB OMP (size 1 to 25 cubic metre biogas per day) (In Rupees per plant )   | Biogas Plants under NNB OMP (size 1 to 25 cubic metre biogas per day) (In Rupees per plant )   |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| A     | Central Subsidy Rates Applicable (In Rs. per plant)                                                                                                                          | 1 Cubic Metre                                                                                  | 2-6 Cubic Metre                                                                                | 8-10 Cubic Metre                                                                               | 15 Cubic Metre                                                                                 | 20 - 25 Cubic Metre                                                                            |
|       | I. NER States, including Sikkim and including SC and ST Categories of NER.                                                                                                   | 17,000                                                                                         | 22,000                                                                                         | 24,000                                                                                         | 25,000                                                                                         | 35,000                                                                                         |
|       | II. Special Category States (Jammu & Kashmir, Himachal Pradesh, Uttarakhand, and Andaman &Nicobar Islands) and III. Scheduled Castes / Scheduled Tribes of all other States. | 10,000                                                                                         | 13,000                                                                                         | 18,000                                                                                         | 21,000                                                                                         | 28,000                                                                                         |
|       | All other States (General Category)                                                                                                                                          | 7,500                                                                                          | 12,000                                                                                         | 16,000                                                                                         | 20,000                                                                                         | 25,000                                                                                         |
| B     | Additional Subsidy for cattle dung based biogas plants if linked with sanitary toilets, only for individual households (Rs. Per Biogas Plant) fixed amount.                  | 1,600                                                                                          | 1,600                                                                                          | 1,600                                                                                          | Nil                                                                                            | Nil                                                                                            |

|   2. | Decentralized Solar Photovoltaic Systems.                                                         | Decentralized Solar Photovoltaic Systems.                                       |
|------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|    2 | a) Lighting systems/ Power packs                                                                  | Subsidy of 30% of the device/ project cost                                      |
|    2 | b) Solar pumps                                                                                    | Subsidy of 30%, 25%, and 20% depending upon pump capacity.                      |
|    2 | c) Solar Study lamps                                                                              | Student contribution Rs 100 Balance to be paid as Central Financial Assistance. |
|    2 | d) Solar Street light under AJAY scheme                                                           | 75% of the project cost                                                         |
|    3 | Concentrating Solar Thermal Technology                                                            | 30% of the project cost.                                                        |
|    4 | Micro-hydel plants/ Water mills : ( valid for the Administrative approval issued till 31/3/2017 ) | Subsidy/CFA to producers:                                                       |
|    4 | Micro-hydel plants/ Water mills : ( valid for the Administrative approval issued till 31/3/2017 ) | Rs. 1.25 lakh/kW for Micro-hydelupto 100 kW.                                    |
|    4 | Micro-hydel plants/ Water mills : ( valid for the Administrative approval issued till 31/3/2017 ) | Rs.0.50 lakh per Watermill for Mechanical output.                               |
|    4 | Micro-hydel plants/ Water mills : ( valid for the Administrative approval issued till 31/3/2017 ) | Rs.1.50 lakh per Watermill for Electrical Output.                               |
|    5 | Biomass Gasifier                                                                                  | CFA/Subsidy to consumers:                                                       |
|    5 | Biomass Gasifier                                                                                  | Rs. 15,000 /kW (with 100% producer gas engine)                                  |
|    5 | Biomass Gasifier                                                                                  | Rs. 2,500/kW for duel fuel engine                                               |
|    5 | Biomass Gasifier                                                                                  | Rs. 2.0 lakh per 300 kW for Thermal Applications                                |
|    5 | Biomass Gasifier                                                                                  | 20% higher CFA for special category states                                      |