Lok Sabha Question No. 3892 (UNSTARRED), answered on 2018-08-09
Subject: Promotion of Solar Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: SAVITRI THAKUR

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-3892

TO BE ANSWERED ON-09.08.2018

## PROMOTION OF SOLAR ENERGY

## 3892. SHRIMATI SAVITRI THAKUR

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

- (a) the names of the schemes being implemented by the Union Government to promote solar energy in Madhya Pradesh at present;
- (b) the quantum of funds provided to the State under the above-mentioned schemes during the last two years;
- (c)  whether  the  Union  Government  has  proposed  any  provision  of  subsidy  for  use  of  solar energy; and
- (d) if so, the details thereof?

## ANSWER

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

- (a)  The  Ministry  of  New  &  Renewable  Energy  (MNRE)  has  been  implementing  various schemes in the country, including in Madhya Pradesh, to promote solar energy. The names of the schemes are as under:
- i. Development of Solar Parks and Ultra Mega Solar Power Projects.
- ii. Scheme for setting up 1000 MW of Grid-Connected Solar PV Power Projects by the Central Public Sector Undertakings (CPSUs) and the Government of India organisations with VGF.
- iii.  Scheme for setting up 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments and Para Military Forces with VGF.
- iv. Pilot-cum-demonstration projects for development of grid connected solar PV power plants on canal banks and canal tops.
- v. Bundling Scheme - 15000 MW grid-connected solar PV power plants through NTPC Ltd./ NVVN.
- vi.  VGF  Scheme  for  setting  up  of  2000  MW  of  Grid  Connected  Solar  PV  Power  Projects through Solar Energy Corporation of India (SECI).
- vii.  VGF  Scheme  for  setting  up  of  5000  MW  of  Grid  Connected  Solar  PV  Power  Projects through SECI.
- viii. Installation of Grid Connected Solar Rooftop Power Plants.
- ix. Off-Grid Solar PV Scheme.
- (b) The details of quantum of funds provided to Madhya Pradesh under various schemes during the last two years are given in Annexure-I .
- (c) & (d) The details of provision of subsidy for use of solar energy are given in Annexure-II.

*****

## ANNEXURE-I

## ANNEXURE-I  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3892 for 09-08-2018

Quantum of Funds provided to Madhya Pradesh under Various Schemes during the last two years

(Rs. in Crore)

| Sl. No.   | Schemes                                                                                                                           |   2016-17 |   2017-18 |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|
| 1.        | Development of Solar Parks and Ultra Mega Solar Power Projects                                                                    |     56.56 |     13.47 |
| 2.        | Grid Connected Solar Rooftops Scheme                                                                                              |     31.96 |      3.14 |
| 3.        | Roof Top PV and Small Solar Power Generation Programme (RPSSGP) Solar GBI Scheme                                                  |      8.78 |      2    |
| 4.        | Off-Grid SPV Scheme                                                                                                               |      0.66 |     69.09 |
| 5.        | Scheme for Setting up of Grid Connected Solar PV Power Projects by CPSUs and Govt. Organizations with Viability Gap Funding (VGF) |     82.5  |    114.75 |
|           | Total                                                                                                                             |    180.46 |    202.45 |

## ANNEXURE-II

## ANNEXURE-II REFERRED TO IN REPLY TO PARTS (c) AND (d) OF LOK SABHA UNSTARRED QUESTION NO. 3892 for 09-08-2018 DETAILS OF PROVISION OF SUBSIDY FOR USE OF SOLAR ENERGY

|   Sr. No. | Scheme                                                                                                                                               | Central Financial Assistance (CFA) / Subsidy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects                                                                            |  Rs.20 lakhs/MW or 30% of the project cost including Grid- connectivity cost, whichever is lower  CFA @Rs 25.00 lakh per park for DPR preparation of solar parks, conducting surveys, etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|         2 | Operationalization of 300 MW Solar PV Projects by defence establishment and para military forces                                                     |  The bidders selected on the basis of bids for minimum VGF requirement for the project with commitment to supply solar power at Rs. 5.50/KWh for 25 years.  The upper limits of the VGF are as follows: (i) Category-I: Rs.2.5 crore/MW for project capacity up to 5 MW or 30% of the project cost whichever is lower; (ii) Category-II: Rs. 2 crore/MW for project capacity greater than 5 MW up to 25 MW or 30% of the project cost whichever is lower; and (iii) Category-III : Rs. 1.5 crore /MW for project capacity greater than 25 MW or 30% of the project cost whichever is lower. Keeping in view the technology upgradation and economies of scales, the upper limit of VGF was revised on 17.02.2017 to @ Rs. 1.10 Cr./MW for all projects irrespective of sizes for which tenders were not brought out and the tariff was revised from Rs. 5.50/KWh to Rs. 4.50/kWh. |
|         3 | Scheme for Setting up of 750 MW Grid-connected Solar PV Power Projects under Batch-1 of Phase-II of JNNSM with Viability Gap Funding Support         | The selection of the bidders has been based on the Viability Gap Funding (VGF) required for the project in an ascending order up to the full capacity. Viability Gap Funding (VGF) is limited to 30% of the project cost or 2.5 crore per MW, whichever is lower. Solar Energy Corporation of India (SECI) has signed PPA with such project developers for purchasing entire power from the project for 25 years at 5.45 Rs. per unit (4.75 Rs. per unit for projects availing accelerated depreciation).                                                                                                                                                                                                                                                                                                                                                                           |
|         4 | Scheme for Setting up of 2000MW Grid-connected Solar PV Power Projects under Batch-III of Phase-II of JNNSM with Viability Gap Funding (VGF) Support | The Project developer is provided a VGF based on his bid. The upper limit for VGF is kept at Rs.1.0 Crore/MW with a pre- determined tariff of Rs. 4.50/kWh.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|         5 | Scheme for Setting up of 5000MW Grid-connected Solar PV Power Projects under Batch-IV of Phase- II of JNNSM with Viability Gap Funding (VGF) Support | The Project developer is provided a VGF based on his bid. The upper limit for VGF is kept at Rs. 1.0 crore/MW. SECI will select projects through competitive e-bidding based on minimum VGF sought (quoted in INR/MW), or there may be a provision for quoting a discounted tariff (quoted in INR/kWh) with zero VGF.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|         6 | Grid Connected Rooftop                                                                                                                               | CFA of up to 30% of project cost /bench mark cost (whichever is lower) is being provided for installation of Grid Connected Rooftop Solar Projects in Residential, Institutional and Social                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Sr. No.   | Scheme                                                                                                                                                       | Central Financial Assistance (CFA) / Subsidy                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                              | sectors in General Category States and up to 70% of the project cost/benchmark cost (whichever is lower) in Special Category States (i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman& Nicobar Islands). For Govt. sector, achievement linked incentives are being provided. Subsidy/CFA is not applicable for commercial and industrial establishments in private sector |
| 7.        | Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops                                        | The Scheme has provision for Central Financial assistance as follows:  Rs.3 crore/MW or 30% of the project cost, whichever is lower, for Canal Top SPV projects; and  Rs. 1.5 crore/MW or 30% of the project cost, whichever is lower, for Canal Bank SPV projects. The Scheme is closed for new sanctions.                                                                                                                                |
| 8.        | Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power projects by Central Public Sector Undertakings (CPSUs) under Batch- V of Phase II of JNNSM | The Scheme has provision for Viability Gap Funding as follows:  Rs.1 Cr. /MW, for projects where domestically produced Cells and Modules are used  Rs.50 Lakh /MW, for projects where domestically produced Modules are used.                                                                                                                                                                                                              |
| 9.        | Off-Grid scheme- SPV lighting systems and power plants, Solar Pumps                                                                                          | The Scheme is closed for new sanctions. 1. Lighting Systems A. Street Lights with Lead acid batteries: Benchmark Cost = Rs. 300/Wp: CFA=Rs. 90/Wp B. Street lights with Lithium Ferro Phosphate batteries: Benchmark cost= Rs. 435/Wp: CFA= Rs. 130.50/Wp 2. Power plants with 6 hours battery bank: Benchmark Cost = Rs. 100/Wp: CFA=Rs. 30/Wp 3. Solar Lamp: Benchmark Cost = Rs. 250/Wp: CFA=Rs. 212.50/Wp                                |