Lok Sabha Question No. 4961 (UNSTARRED), answered on 2021-03-25
Subject: Development of Solar Energy in Rural Areas
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Nihal Chand Chauhan

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-4961

ANSWERED ON-25.03.2021

## DEVELOPMENT OF SOLAR ENERGY IN RURAL AREAS

- +4961. SHRI NIHAL CHAND

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

- (a) whether the Government proposes any scheme to develop solar energy in rural areas and to use it as a resource;
- (b) if so, the details thereof;
- (c)  whether the Government has prepared any outline in this regard;
- (d)  if so, the details thereof and if not, the reasons therefor; and
- (e) whether the Government is likely to consider it in near future and if so, the details thereof?

## 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(e)  The  Ministry  of  New  and  Renewable  Energy  is  implementing  various  schemes  / programmes,  throughout  the  country,  including  in  rural  areas,  for  the  development  and deployment of solar energy. Details of these schemes/programmes are given at Annexure .

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Annexure referred in reply to Part (a) to (e) of the Lok Sabha Unstarred Question No. 4961 to be answered on 25.03.2021 on 'Promotion of Solar Energy'

## Details of various schemes / programmes, presently being implemented by the Ministry of New and renewable Energy for the development and deployment of solar energy in the country, including in the rural areas

| Scheme                                                                                                                                    | Application/ Size                                                                                                                            | CFA available & Intended beneficiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | States/UTs covered                                      |
|-------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
| a) Solar Park Scheme                                                                                                                      | Scheme aims to develop Solar Parks and Ultra Mega Solar Power Projects for setting up of 50 solar parks of 40,000 MW capacity in the Country | Rs. 20 Lakh per MW or 30% of the project cost including Grid-connectivity cost, whichever is lower. Also, up to Rs. 25 lakh per Solar park for preparation of Detailed Project Report (DPRs). Intended beneficiary: Solar Power Park Developer (SPPD), Central Transmission Utility and State Transmission Utility (STU) Application process: Proposal for solar park is submitted to SECI. On approval, CFA is disbursement by MNRE through SECI.                                                                                                     | All States/ UTs                                         |
| b) CPSU Scheme Phase- II (Government Producer Scheme)                                                                                     | Total size of the scheme 12000 MW.                                                                                                           | Viability Gap Funding (VGF) of up to Rs. 0.7 Cr./MW is provided. Use of domestically manufactured solar PV cells and modules is mandatory. 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 Intended beneficiary: Government Producers Application process: Tender is brought out by SECI/ IREDA for reverse bidding on VGF. VGF is sanctioned to successful Government Producers. | All States/ UTs                                         |
| c) Scheme for Distributed Grid-connected Solar PV Power Projects in Andaman& Nicobar Islands and Lakshadweep Islands with Capital Subsidy | Capacity proposed to be installed is 52 MW                                                                                                   | i. Ministry provides 40% of the project cost discovered through competitive bidding process as grant to developer; 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                                                                                                                                                                                                                                                              | Island UTs of Andaman & Nicobar Islands and Lakshadweep |

| Scheme                                          | Application/ Size             | CFA available & Intended beneficiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | States/UTs covered   |
|-------------------------------------------------|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| fromMNRE                                        |                               | 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. Intended beneficiary: PSU Developers such as NLC, NTPC, REIL and SECI or UT Administrations of A&N Islands or Lakshadweep islands. Application process: Proposal is submitted by PSU/ UT Administration to MNRE. On approval, Central subsidy is sanctioned to concerned PSU/ UT Administration.                                                                                                                                                                                                                                                                                                                                                                                                                     |                      |
| 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 or tender cost, whichever is lower. (ii) Residential sector (above 3 kW capacity and up to 10 kW capacity) - 40 % of benchmark cost or tender cost, whichever is lower, up to 3 KW and 20% for system capacity 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 installation of RTS for common activity. Further, incentive is being provided to Discoms based on percentage of year- wise installed capacity achieved against previous year's cumulative installation. Intended beneficiary: Residential customer, Group Housing Societies | All States/ UTs      |

| Scheme                                                                   | Application/ Size                                                                                                                                                                                                                                                                                                                           | CFA available & Intended beneficiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | States/UTs covered                                                                              |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
|                                                                          |                                                                                                                                                                                                                                                                                                                                             | (GHS) and Residential Welfare Associations (RWA) Application process: Discoms are implementation agencies under the Scheme. Capacity is sanctioned to implementation agencies by MNRE.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                 |
| e) Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) | (a) Component-A: 10 GWInstallation of Renewable power plants (incl. solar) up to2MW capacity on barren/agriculture land. (b) Component-B: Installation of 20 lakh standalone solar pumps up to 7.5 HP capacity each for irrigation purpose (c) Component-C: Solarization of 15 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 commercial operation date. For Components-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 to the beneficiary. 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 of 30% of the cost of standalone pump/ solarization, or higher. State may also opt for feeder level solarization under Component-C. Intended beneficiary: Farmers by way of subsidy and additional income through sell of electricity. Application process: State Nodal Agencies of MNRE/ Discoms/ State Agricultural Department/ State Horticulture Department are implementation agencies under Scheme. Capacity is sanctioned to implementation agencies by MNRE. Applications are invited by the implementation agencies and CFA is | All States/ UTs                                                                                 |
| f) Off-grid and Decentralized Solar PV Applications Scheme: Phase- III   | a) Solar Street Lights / Solar Power Packs                                                                                                                                                                                                                                                                                                  | CFA up to 30% of the benchmark cost or tender cost of the system, whichever is lower, in General Category States and 90% of the benchmark cost or tender cost of the system, whichever is lower, in North Eastern states including                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Solar street lights and solar power packs were initially available in all States including West |

| Scheme   | Application/ Size    | CFA available & Intended beneficiary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | States/UTs covered                                                                                                                                                                 |
|----------|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          | b) Solar Study lamps | Sikkim; states of Himachal Pradesh and Uttarakhand; UTs of Jammu & Kashmir and Ladakh; and island UTs of Lakshadweep and Andaman & Nicobar. For solar study lamps, CFA up to 85% of the solar study lamp cost is provided all states. Intended beneficiary: Students, Communities and Public Service Institutions. Application process: State Nodal Agencies of MNRE are implementation agencies under the Scheme. Demand is aggregated by these agencies and submitted to MNRE for approval. CFA provided to beneficiaries through implementation agencies. | Bengal. After continuation of the Scheme in 2020- 21, these applications are available only in NE States. Solar study lamps are available in NE States and LWE affected districts. |