Lok Sabha Question No. 311 (UNSTARRED), answered on 2018-07-19
Subject: Incentives under Renewable Energy Schemes
Ministry: NEW AND RENEWABLE ENERGY
Asked by: PRATHAP SIMHA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-311

TO BE ANSWERED ON-19.07.2018

## INCENTIVES UNDER RENEWABLE ENERGY SCHEMES

## 311. SHRI PRATHAP SIMHA:

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

- (a) the details of incentives being offered by the Government in the form of Central Financial Assistance under various renewable energy schemes/programmes including wind, hydro power, etc. in the country;
- (b) whether the Government is implementing Green Energy Corridor Scheme to encourage utilities to integrate  large  scale  wind,  hydro,  solar  power,  etc.  generation  capacity  in  the  renewable  energy  rich States;

(c) if so, the details thereof;

- (d)  whether  the  State  Electricity  Regulatory  Commissions  (SERCs)  have  been  mandated  to  purchase energy from renewable sources of energy; and

(e) if so, the details thereof?

## ANSWER

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

(a)  The  details  of  incentives  being  offered  by  the  Government  in  the  form  of  Central  Financial Assistance under various renewable energy schemes/programmes including wind, hydro power, etc. in the country are given in Annexure.

(b) & (c) The Intra-State Transmission System Green Energy Corridor project is being implemented by State  Transmission  Utilities  of  Eight  renewable  energy  rich  States,  namely  Tamil  Nadu,  Rajasthan, Karnataka,  Andhra  Pradesh,  Maharashtra,  Gujarat,  Himachal  Pradesh  and  Madhya  Pradesh.  The  total project cost is Rs. 10,141 crore and is being implemented with funding pattern: 20% State Equity, 40% NCEF Grant (total 4056.67 crore) and 40% KfW loan (500 million EUR). The project includes laying of approx. 9400 ckm transmission lines and erecting substations of approx. 19000 MVA.

The, Inter-State Transmission Network project is being implemented by the Power Grid Corporation of India Limited (PGCIL). The total project cost is Rs. 11,369 crore with 30% equity from PGCIL i.e. Rs. 3410 crore and 70% concessional loan, i.e. Rs. 5203 Crore under KFW financing and Rs. 2756 Cr under ADB financing. This includes approx. 3200 ckms line and six substations of total 18,000 MVA.

(d)  &  (e)  The  Section  86(1)(e)  of  the  Electricity  Act,  2003  mandates  State  Electricity  Regulatory Commissions to promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person, and also specify, for purchase of electricity from such sources, a percentage of the total consumption of electricity in the area of a distribution licensee.

## Subsidies and Incentives being provided as Central Financial Assistance (CFA) for the installation of various renewable energy programmes.

## 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 Organisations 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 31-03-2017)** 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 Modernisation :

| 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)

Central Financial Assistance (CFA) will be provided at the rate of Rs.25 Lakh/MW (for bagasse cogeneration projects) and Rs.50 Lakh/MW (Nonbagasse Cogeneration projects) under the scheme.

## 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-hydel upto 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                                      |