Lok Sabha Question No. 3847 (UNSTARRED), answered on 2019-01-03
Subject: Subsidy on Equipments
Ministry: NEW AND RENEWABLE ENERGY
Asked by: AJAY NISHAD

3847. SHRI AJAY NISHAD

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

(a) whether the Government proposes to increase the subsidy on equipment used in renewable energy projects including solar energy projects and wind energy projects;

- (b) if so, the details thereof; and

(c) the details of amount of subsidy being permitted on such equipments currently?

## ANSWER

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

(a) to (c) The Government is implementing various schemes/programs to promote development and deployment of renewable energy projects including solar energy and wind energy projects in the  country.  The  Central  Financial  Assistance  (CFA)  incentives/subsidies  being  provided  vary from scheme to scheme for approved time period as per the scheme/program.

The details of CFA/ incentives/subsidies being offered presently under various schemes/programs of Ministry of New & Renewable Energy are given in the Annexure.

*****

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY LOK SABHA UNSTARRED QUESTION NO-3847

TO BE ANSWERED ON-03.01.2019

## SUBSIDY ON EQUIPMENTS

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 3847 FOR 03.01.2019

## DETAILS OF CFA/SUBSIDIES/INCENTIVES BEING PROVIDED FOR THE DEVELOPMENT & DEPLOYMENT OF VARIOUS RENEWABLE ENERGY SOURCES

## 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 Capacity 10MW Maximum Project Capacity 50MW    | 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 Organizations 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 | 1MW to 10MW | 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 MW or 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 /MW for 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 KW and up to 1000 KW   | Above1MW - 25MW                                 |
|----------------------------------------------|----------------------------------|-------------------------------------------------|
| Special category (J&K, HP &UK) and NE States | 75,000 per KW.                   | 7.5 Crores /MW limited to 20 crore per project. |
| Other States                                 | 35,000 per KW.                   | 3.5 Crores /MW limited 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/MW limited to 5.00 crore per project |
| Other States                                                   | 1.0 crore/MW limited to 5.00 crore per         |

## Renovation and Modernization :

| for Government Sector projects   | Rs 1.00 crore/MW limited to 10.00 crores per project.   |
|----------------------------------|---------------------------------------------------------|

project

## 4.BIOMASS BASED COGENERATION IN SUGAR MILLS AND OTHER INDUSTRIES IN THE COUNTRY (UP TO MARCH 2020)

| Type of Project                                  | Rate of CFA                                          |
|--------------------------------------------------|------------------------------------------------------|
| Bagasse Cogeneration in Sugar Mills              | Rs 25 lakh/MW calculated on surplus exportable power |
| Biomass( Non-bagasse) Cogeneration in Industries | Rs 50 laks/MW calculated on installed capacity       |

## 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.                                       |
|------|---------------------------------------------|---------------------------------------------------------------------------------|
|      | a) Lighting systems/ Power packs            | Subsidy of 30% of the device/ project cost                                      |
|      | b) Solar pumps                              | Subsidy of 30%, 25%, and 20% depending upon pump capacity.                      |
|      | c) Solar Study lamps                        | Student contribution Rs 100 Balance to be paid as Central Financial Assistance. |
|      | 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-hydelupto 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        |