Lok Sabha Question No. 3212 (UNSTARRED), answered on 2020-03-12
Subject: Subsidy on Solar Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Krupal Balaji Tumane

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 3212

TO BE ANSWERED ON 12.03.2020

## SUBSIDY ON SOLAR ENERGY

## +3212.SHRI KRUPAL BALAJI TUMANE

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

- (a) whether the Government proposes to provide subsidy on solar energy to the States along with the norms/basis of providing subsidy to them;
- (b) if so, the details thereof along with the amount of subsidy given to Maharashtra during the last three years;
- (c) whether the subsidy to Maharashtra has not been released since long;
- (d) if so, the details thereof and the reasons therefor; and
- (e) the amount of subsidy released to Maharashtra since 1 April, 2019 and the amount kept on hold?

## ANSWER

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI R.K. SINGH)

- (a)  to  (d)  The  Ministry  of  New  and  Renewable  Energy  (MNRE)  is  implementing  various schemes for development, deployment and promotion of solar energy including the State of Maharashtra.

Details  of  these  schemes  and  Central  Financial  Assistance  (CFA)  available  are  given  at Annexure.

The amount of CFA released by MNRE to Maharashtra during last three years is as given below:

| Year    |   Amount Released (Rs. Crore) |
|---------|-------------------------------|
| 2016-17 |                         38.5  |
| 2017-18 |                          9.05 |
| 2018-19 |                        167.64 |

(e) Since 1 April 2019 an amount of Rs. 95.44 Crore has been released by MNRE as CFA to Maharashtra and no amount has been kept on hold.

*****

Annexure referred to in reply to parts (a) to (d) of Lok Sabha Unstarred Question No. 3212 for reply on 12.03.2020

## DETAILS OF SCHEMES AND CFA/ INCENTIVES BEING PROVIDED FOR DEVELOPMENT & DEPLOYMENT OF SOLAR ENERGY

| Scheme                                                                                                                                               | Application/ Size                        | CFA available                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a) Solar Park Scheme                                                                                                                                 | --                                       | Rs. 25 lakh per Solar park for preparation of Detailed Project Report (DPRs). Rs. 20 Lakh per MW or 30% of the project cost including Grid-connectivity cost, whichever is lower.                                                                                                                                                                                                                                                                                                               |
| b) CPSU Scheme Phase- II (Government Producer Scheme)                                                                                                | Total size of the scheme 1200 MW.        | Viability Gap Funding (VGF) of upto Rs. 0.7 Cr./MW. VGF is released in two tranches as follows: i. 50% on Award of contract to the EPC contractor (including in-house EPC Division); and ii. balance 50% on successful commissioning of the full capacity of the project                                                                                                                                                                                                                        |
| c) Scheme for Distributed Grid- connected Solar PV Power Projects in Andaman &Nicobar Islands and Lakshadweep Islands with Capital Subsidy from MNRE | Capacity proposed to be installed is52MW | i. Ministry provides 40% of the project cost discovered through competitive bidding process as grant; ii. No additional grant for the preparation of DPR, conducting field survey, fund handling / service charge will be provided iii. The Capital Subsidy will be released in three tranches as mentioned below:  15% on completion of site development and civil works at site;  60% on successful commissioning of the plant; and  Balance 25% after one year of operation of the plant. |
| d) Phase-II of Grid Connected Rooftop Programme                                                                                                      | 4000 MW in residential sector            | Central Financial Assistance will be as under: (i) Residential sector (maximum up to 3 kW capacity ) - 40 %of benchmark cost (ii) Residential sector (above 3 kW capacity and up to 10 kW capacity) - 40 % up to 3 KW Plus 20% for RTS system above 3 kW and up to 10 kW                                                                                                                                                                                                                        |

|                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                | (iii) Group Housing Societies/Residential Welfare Associations (GHS/RWA) etc. for common facilities up to 500 kWp (@ 10 kWp per house), with the upper limit being inclusive of individual rooftop plants already installed by individual residents in that GHS/RWA at the time of ins                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| e) Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)                                                                                                              | (a) Component-A: 10 GWInstallation of Renewable power plants (incl. solar) up to 2 MWcapacity on barren/agriculture land. (b) Component-B: Installation of 17.5 lakh standalone solar pumps up to 7.5 HP capacity each for irrigation purpose (c) Component-C: Solarization of 10 lakh existing agricultural pumps up to 7.5 HP capacity each. | For Component-A, DISCOM would be eligible to get PBI @Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the COD For Component-B and C, CFA of 30% of the benchmark cost or the tender cost of standalone pump or solarization of existing pump, whichever is lower, will be provided. However, in North Eastern states including Sikkim; states of Himachal Pradesh and Uttarakhand; UTs of Jammu & Kashmir and Ladakh; and island UTs of Lakshadweep and A&N, CFA of 50% of the benchmark cost or the tender cost, whichever is lower will be provided. The State Government will also provide subsidy up to 30% or higher. |
| f) Off-grid and Decentralised Solar PV Applications Scheme: Phase-III                                                                                                                 | a) 3 lakh Solar Street Lights / 100 MWSolar Power packs under off- grid Ph-III programme b) 25 lakh Solar Study lamps under off-grid Ph-III programme c) Solar Study lamps under 70 lakh Solar Study lamps scheme d) 3.04 lakh Solar Street light under                                                                                        | CFA up to 30% and 90% of the project cost for general category and special category States respectively. CFA up to 85% of the lamp cost. Student contribution Rs 100/- per lamp and balance to be paid as CFA. CFA up to 75% of the project cost. Balance through MPLADS.                                                                                                                                                                                                                                                                                                                                                                                                                               |
| g) Off-Grid and Decentralized CST Technologies for Community Cooking, Process Heat and Space Heating &Cooling Applications in Industrial, Institutional and Commercial Establishments | AJAY scheme Target to achieve 90,000m 2 of collector area                                                                                                                                                                                                                                                                                      | CFA up to 20% of the project cost for all beneficiaries and 40% for Non-profit making bodies and institutions in special category states.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |