Lok Sabha Question No. 5426 (UNSTARRED), answered on 2019-07-25
Subject: Subsidy on Equipments
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Ajay Nishad

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 5426

TO BE ANSWERED ON 25.07.2019

## SUBSIDY ON EQUIPMENTS

## 5426. SHRI AJAY NISHAD

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

(a)  whether  the  Government  proposes  to  increase  subsidy  on  equipments  to  be  used  in renewable  energy  projects  including  solar  energy  and  wind  energy  and  if  so,  the  details thereof;

(b) whether the Government promotes public participation in setting up of these projects;

(c) if so, the details thereof; and

(d) the quantum of subsidy being provided on such equipments at present?

## ANSWER

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

(a)  to  (d)  The  Ministry  of  New  &  Renewable  Energy  (MNRE)  is  implementing  various schemes/programs to promote development and deployment of renewable energy including solar  and  wind  energy  in  the  country  through  public  participation.  The  Central  Financial Assistance  (CFA),  incentives/subsidies  being  provided  vary  from  scheme  to  scheme  for approved time period as per the provisions of scheme/program.

The details of CFA/incentives/subsidies being offered presently under various schemes/programs of MNRE are given in the Annexure.

*****

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA UNSTARRED QUESTION NO. 5426 FOR 25.07.2019

## DETAILS OF CFA/SUBSIDIES/INCENTIVES BEING PROVIDED FOR THE INSTALLATION OF VARIOUS RENEWABLE ENERGY PROGRAMMES

## A.     GRID-INTERACTIVE RENEWABLE POWER PROGRAMMES:

| 1. Wind Power Projects.                                                                                                                                                                             | 1. Wind Power Projects.                                   | 1. Wind Power Projects.                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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                                                                                                                                                   | Benchmark cost fixed by MNRE on yearly basis.             | (i) For Residential Sector  Central Financial Assistance (CFA) up to 40% for capacity up to 3 kWp  CFA up to 20% for capacity beyond 3 kWp and up to 10 kWp  CFA up to 20% for GHS/RWA capacity up to 500 kWp (limited to 10 kWp per house and total upto 500 kWp) (ii) For Discoms Incentives up to 10% of project cost depending upon achievements in capacity addition above baseline. |
| 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 Lkah per MW or 30% of the project cost including Grid-connectivity cost, whichever is lower.                                                                                                                                                                                                                     |
| f) Solar PV scheme for Defence                                                                                                                                                                      | --                                                        | Tender issued before 17/02/2017- VGF support                                                                                                                                                                                                                                                                                                                                                 |

| Establishments            |                                               | is 2.50 cr/MW Tender issued after 17/02/2017- Rs 1.1 crore / MWfor all capacities.                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------------------|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| g) New Scheme for Farmers | Benchmark cost fixed by MNRE on yearly basis. | (i) For Solar power plants, incentives to Discoms @ Rs. 0.40 per kWh subject to limit of Rs. 6.60 lakh per MW/year for a period of five years. (ii) For stand-alone solar pumps and solarisation of grid connected agriculture pumps: CFA of 30% of the benchmark cost or the tender cost, whichever is lower and in North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower. |

## 3. Small Hydro Power (SHP) Projects: (valid for the projects commenced on or before 3103-2017)**

## 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)

| 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

o

| Sn   | 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

| a) Solar Street Lights / Power packs                        | CFA up to 30% of the project cost.                                    |
|-------------------------------------------------------------|-----------------------------------------------------------------------|
| b) Solar Study lamps under off-grid scheme                  | CFA up to 85% of the lamp cost.                                       |
| c) Solar Study lamps under 70 lakh Solar Study lamps scheme | Student contribution Rs 100/- per lamp and balance to be paid as CFA. |
| d) Solar Street light under AJAY scheme                     | CFA up to 75% of the project cost.                                    |

## 3. Concentrating Solar Thermal Technology 30% of the project cost.