Lok Sabha Question No. 3242 (UNSTARRED), answered on 2018-03-15
Subject: Subsidy for Non-Conventional Energy Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: P.K.SREEMATHI TEACHER

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-3242

TO BE ANSWERED ON-15.03.2018

## SUBSIDY FOR NON-CONVENTIONAL ENERGY PROJECTS

3242. SHRIMATI P.K. SREEMATHI TEACHER

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

- (a) whether the Government proposes to introduce new subsidy scheme for the non-conventional energy projects in the country;
- (b) if so, the details thereof; and
- (c)  the  steps  being  taken  by  the  Government  for  promoting  the  usage  of  non-conventional  energy resources including solar energy for a solution to the imbalance in power supply and its demand?

## ANSWER

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

- (a) & (b) The Ministry of New and Renewable Energy is promoting the development and deployment of various renewable energy sources in the country. The details of subsidy / incentives being offered by the Government of India in  form of Central  Financial  Assistance  for  the  implementation  of  various  nonconventional energy projects in the country are given in the Annexure.
- (c)  The  steps  being  taken  by  the  Government  of  India  for  promoting  the  usage  of  non-conventional energy resources including solar energy, for a solution to imbalance in power supply and demand ,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 2018-19;
- iii. Declaration of Renewable Generation Obligation on new coal/lignite based thermal plants;
- iv. 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;
- v. Notification of  National Offshore Wind Energy Policy;
- vi. Notification of  Policy for Repowering of Wind Power projects;
- vii. Notification of  standards for deployment of solar photovoltaic systems/devices and
- viii. Launched Atal Jyoti Yojana for Solar LED street lights in five states.

*****

Annexure referred to in reply to part (a)& (b) of LokSabha Unstarred Question No. 3242 for

## 15/03/2018 regarding 'Subsidy for Non-Conventional Energy Projects'.

## A.     GRID-INTERACTIVE RENEWABLE POWER SCHEMES:

| 1. Wind Power Projects. 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 to Rs.2.50 Cr/MW 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 |
| c) Grid connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs).                                                                                                            | Total size of the scheme 1000MW.                               | establishments in private sector. VGF support to the CPSUs/Govt. Organizations (producers) 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 Defense Establishments                                                                                                                                                       | --                                                             | Rs 1.1 crore / MWfor all capacities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

## 3. Small Hydro Power (SHP)

## 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 Power and Bagasse Cogeneration Projects (producers):

Private / Joint / Cooperative / Public Sector Sugar Mills:

| Type of Projects                                                  | Special Category and NE States                                | Other States                                                       |
|-------------------------------------------------------------------|---------------------------------------------------------------|--------------------------------------------------------------------|
| Biomass Power projects                                            | Rs.25 lakh perMW*                                             | Rs.20 lakh perMW*                                                  |
| Bagasse Co-generation                                             | Rs.18 lakh perMW*                                             | Rs.15 lakh perMW*                                                  |
| Co-generation projects by cooperative/public sector sugar mills:- | Per MWof surplus power (maximum support Rs. 6.0 cr / project) | Per MWof surplus power (maximum support of Rs. 6.0 cr per project) |
| 40 bar &above                                                     | Rs.40 lakh                                                    | Rs.40 lakh                                                         |
| 60 bar &above                                                     | Rs.50 lakh                                                    | Rs.50 lakh                                                         |
| 80 bar &above                                                     | Rs.60 lakh                                                    | Rs.60 lakh                                                         |

## 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 SCHEMES:

|   S.No | Programme                                                                                                                                                                                                                        | CFA/Subsidy to consumers (limited to following ceiling or 40% of the cost of the system, whichever is less)                                                                                                                                                                                                                                                                                     |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      1 | Family Type Biogas Plants                                                                                                                                                                                                        | Family Type Biogas Plants                                                                                                                                                                                                                                                                                                                                                                       |
|      1 | a) NE Region States including Sikkim (except plain areas of Assam)                                                                                                                                                               | Rs.15,000 to Rs.17,000 per plant                                                                                                                                                                                                                                                                                                                                                                |
|      1 | b) Plain areas of Assam                                                                                                                                                                                                          | Rs.10,000 to Rs.11,000 per plant                                                                                                                                                                                                                                                                                                                                                                |
|      1 | c) J&K, Himachal Pradesh, Uttarakhand (excluding Terai region), Nilgiris of Tamil Nadu, Sadar, Kurseong and Kalimpong sub-divisions of Darjeeling, Sunderbans, Andaman &Nicobar Islands and SC &ST (not included in above areas) | Rs.7,000 to Rs.11,000 per plant                                                                                                                                                                                                                                                                                                                                                                 |
|      1 | d) All Others                                                                                                                                                                                                                    | Rs.5,500 to Rs.9,000 per plant                                                                                                                                                                                                                                                                                                                                                                  |
|      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                                                                                                                                                                                           | Subsidy @ 30% of the bench mark cost or actual cost whichever is less will be available to all types of beneficiaries in general category states and 60% to all types of Non-profit making bodies and institutions in special category states, viz., NE states, Sikkim, J&K, Himachal Pradesh, Uttarakhand and islands. International border districts will come under general category states. |
|      4 | Micro-hydel plants/ Water mills                                                                                                                                                                                                  | Subsidy/CFA to producers:                                                                                                                                                                                                                                                                                                                                                                       |
|      4 | Micro-hydel plants/ Water mills                                                                                                                                                                                                  | Rs. 1.25 lakh/kW for Micro-hydel upto 100 kW.                                                                                                                                                                                                                                                                                                                                                   |
|      4 | Micro-hydel plants/ Water mills                                                                                                                                                                                                  | Rs.0.50 lakh per Watermill for Mechanical output.                                                                                                                                                                                                                                                                                                                                               |
|      4 | Micro-hydel plants/ Water mills                                                                                                                                                                                                  | 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                                                                                                                                                                                                                                                                                                                                                      |