Lok Sabha Question No. 3865 (UNSTARRED), answered on 2016-12-08
Subject: Generation of Renewable Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: SANJAY JAISWAL

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED  QUESTION NO. 3865

TO BE ANSWERED ON 08.12.2016

## GENERATION OF RENEWABLE ENERGY

## 3865.  DR. SANJAY JAISWAL:

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

(a) whether  the  target  for  generating  175  GW  renewable  energy  by  2022  is  financially  and technologically viable, if so, the details thereof;

(b) the details of funding arrangements made by the Union Government to achieve the said target; and

(c) the  share  of  private  and  public  finance  for  achieving  the  said  target  for  renewable  energy production in the country?

## ANSWER

## THE MINISTER OF STATE FOR POWER, COAL, NEW AND RENEWABLE ENERGY &  MINES (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a) & (b): All the ingredients for achieving target of 175 GW by the year 2022 such as Renewable energy potential, land, technology, financing, conducive policy environment etc are available in the country.

The details of policy initiatives taken by the Government for the development and financing of renewable energy in the country include incentives in the forms of generation based incentives/subsidies, viability gap funding from National  Clean  Energy  Fund  (NCEF),  fiscal  incentives  such  as  accelerated  depreciation,  concessional  customs duty, excise duty exemptions, income tax holiday for 10 years and preferential tariff for renewable energy power projects,  increasing  the  authorized  capital  of  Indian  Renewable  Energy  Development  Agency  (IREDA)  and extending new lines of credit to enable it to enhance its concessional loan to RE projects, mobilizing project based concessional loans through multi-lateral and bi-lateral agencies i.e. World Bank, Asian Development Bank, KfW Germany; inclusion of Renewable Energy Projects in Priority Sector Lending of Banks; and approval for issuance of tax free infrastructure bonds for funding renewable energy projects.

(c): The renewable energy projects are mostly implemented by the private sector as indicated in the annexure.

***********

## Statement referred to in reply to part (c) of Lok Sabha Unstarred Question No. 3865 for 8/12/2016 regarding 'Generation of  Renewable Energy '

## Central  Financial  Assistance  (CFA)  available  under  various  schemes/programmes  for. GRID-INTERACTIVE RENEWABLE POWER PROGRAMMES.

## 1.  Wind Power Projects:

| Generation Based Incentive (GBI)   | Rs.0.50 per unit subject to max of Rs.1.00 crore/MW for producers.   |
|------------------------------------|----------------------------------------------------------------------|

## 2.  Solar Power Projects:

| 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). Grid Connected Rooftop Solar PV Power Projects in residential, institutional and social sector.   | Minimum Project Capacity 10 MW Maximum Project Capacity 50 MW Benchmark support cost Rs.75,000/- per kWp.   | VGF support up to 30% of Project Cost limited to Rs.2.50 Cr/MW based on reverse bidding process for power producers. 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. VGF support to the CPSUs/Govt. Organisations (producers) at a fixed rate of Rs.1 crore/MW for   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Grid connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs).                                                                                                                                                                                                              | Total size of the scheme 1000MW.                                                                            | projects where domestically produced cells and modules are used and Rs. 0.50 crores/MW in cases where domestically produced modules are used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Grid-connected Solar PV Power plants on Canal Banks and Canal Tops                                                                                                                                                                                                                                 | 1 MWto 10MW                                                                                                 | Rs 3 crore / MWor 30% of the project cost 25 lakh per Solar park for preparation of Project Report(DPRs)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Solar Park Scheme                                                                                                                                                                                                                                                                                  | ---                                                                                                         | Detailed 20 Lakh per MW or 30% of the project cost including Grid-connectivity cost, whichever is                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

| Solar PV scheme for Defence Establishments   | lower. Category-I: Rs.2.5 Cr./MW for project capacity upto 5 MW; Category-II: Rs. 2 Cr./MW for project capacity greater than 5 MWupto 25 MW; and Category-III: Rs. 1.5 Cr./MW for project capacity greater than 25 MW.   |
|----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## 3. Small Hydro Power (SHP) Projects

Support to new SHP projects (producers) in State sector:

| Category                       | Above 100 KW and up to 1000 KW   | Above1MW-25MW                                    |
|--------------------------------|----------------------------------|--------------------------------------------------|
| Special category 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                                                           | Upto 25MW                                       |
|-----------------------------------------------------------------|-------------------------------------------------|
| 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

## 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 per MW*                                                                             | Rs.20 lakh per MW*                                                                                     |
| Bagasse Co-generation                                                                                        | Rs.18 lakh per MW*                                                                             | Rs.15 lakh per MW*                                                                                     |
| Co-generation projects by cooperative/public sector sugar mills 40 bar & above 60 bar & above 80 bar & above | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWof surplus power (maximum support Rs. 6.0 cr / project) | Rs.40 lakh Rs.50 lakh Rs.60 lakh Per MWof surplus power (maximum support of Rs. 6.0 crore per project) |

## 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. |