Lok Sabha Question No. 2655 (UNSTARRED), answered on 2018-12-27
Subject: Promotion of Solar Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: JUGAL KISHORE SHARMA, RITI PATHAK

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-2655

TO BE ANSWERED ON-27.12.2018

## PROMOTION OF SOLAR ENERGY

## 2655. SHRI JUGAL KISHORE SHRIMATI RITI PATHAK

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

- (a) the details of the schemes being implemented by the Government for promoting solar energy in the hilly areas of Jammu and Kashmir and rural areas of Madhya Pradesh at present;
- (b) the funds provided under the said schemes during the last two years;
- (c) whether the Government has laid down any provisions for any kind of subsidy for consumption of solar energy; and
- (d) if so, the details thereof?

## ANSWER

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

- (a)  The  Ministry  of  New  and  Renewable  Energy  (MNRE)  has  been  implementing  various  schemes  in  the country, including in the  hilly areas of Jammu and Kashmir and rural areas of Madhya Pradesh, to promote solar energy. The names of the schemes are as under:
- (i) Development of Solar Parks and Ultra Mega Solar Power Projects.
- (ii) Scheme for setting  up  1000  MW  of  Grid-Connected  Solar  PV  Power  Projects  by  the  Central  Public Sector Undertakings (CPSUs) and the Government of India organisations with Viability Gap Funding (VGF).
- (iii) Scheme for setting up 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments and Para Military Forces with VGF.
- (iv) Pilot-cum-demonstration  projects  for  development  of  grid  connected  solar  PV  power  plants  on  canal banks and canal tops.
- (v) Bundling Scheme - 15000 MW grid-connected solar PV power plants through NTPC Ltd./ NVVN.
- (vi) VGF Scheme for setting up of 2000 MW of Grid Connected Solar PV Power Projects through Solar Energy Corporation of India (SECI).
- (vii)  VGF Scheme for setting up of 5000 MW of Grid Connected Solar PV Power Projects through SECI.
- (viii) Installation of Grid Connected Solar Rooftop Power Plants.
- (ix) Off-Grid Solar PV Scheme.
- (b)  The  details  of  quantum  of  funds  provided  to  Jammu  &  Kashmir  and  Madhya  Pradesh  under  various schemes during the last two years are given in Annexure-I.
- (c) & (d) The details of provision of subsidy for consumption of solar energy are given in Annexure-II.

*****

## ANNEXURE-I REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 2655 FOR 27.12.2018

Quantum of Funds provided under Various Schemes during the last two years:

## A. Madhya Pradesh

(Rs. in Crore)

| Sl. No.   | Schemes                                                                                                                           |   2016-17 |   2017-18 |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|
| 1.        | Development of Solar Parks and Ultra Mega Solar Power Projects                                                                    |     56.56 |     13.47 |
| 2.        | Grid Connected Solar Rooftops Scheme                                                                                              |     31.96 |      3.14 |
| 3.        | Roof Top PV and Small Solar Power Generation Programme (RPSSGP) Solar GBI Scheme                                                  |      8.78 |      2    |
| 4.        | Off-Grid SPV Scheme                                                                                                               |      0.66 |     69.09 |
| 5.        | Scheme for Setting up of Grid Connected Solar PV Power Projects by CPSUs and Govt. Organizations with Viability Gap Funding (VGF) |     82.5  |    114.75 |
|           | Total                                                                                                                             |    180.46 |    202.45 |

## B. Jammu & Kashmir

(Rs. in Crore)

| Sl. No.   | Schemes                                                                                                                           | 2016-17   | 2017-18   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------|-----------|-----------|
| 1.        | Development of Solar Parks and Ultra Mega Solar Power Projects                                                                    | 0.25      | 0         |
| 2.        | Grid Connected Solar Rooftops Scheme                                                                                              | 3.68      | 0         |
| 3.        | Roof Top PV and Small Solar Power Generation Programme (RPSSGP) Solar GBI Scheme                                                  |           |           |
| 4.        | Off-Grid SPV Scheme                                                                                                               | 24.66     | 0         |
| 5.        | Scheme for Setting up of Grid Connected Solar PV Power Projects by CPSUs and Govt. Organizations with Viability Gap Funding (VGF) | 0         | 0         |
|           | Total                                                                                                                             | 28.59     | 0         |

## ANNEXURE-II

## ANNEXURE-II REFERRED TO IN REPLY TO PARTS (c) AND (d) OF LOK SABHA UNSTARRED QUESTION NO. 2655 FOR 27.12.2018

## DETAILS OF PROVISION OF SUBSIDY FOR USE OF SOLAR ENERGY

|   Sr. No. | Scheme                                                                                                                                                | Central Financial Assistance (CFA) / Subsidy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects                                                                             |  Rs.20 lakhs/MW or 30%ofthe project cost including Grid- connectivity cost, whichever is lower  CFA@Rs25.00lakhperpark for DPRpreparation of solar parks, conducting surveys, etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         2 | Operationalization of 300 MW Solar PV Projects b y defence establishment a nd p a r a military forces                                                 |  The bidders selected on the basis of bids for minimum VGF requirement for the project with commitment to supply solar power at Rs. 5.50/KWh for 25 years.  The upper limits of the VGFareas follows: (i) Category-I: Rs.2.5 crore/MW for project capacity up to 5 MWor30% of the project cost whichever is lower; (ii) Category-II: Rs. 2 crore/MW for project capacity greater than 5 MWupto25 MWor30%of the project cost whichever is lower; and (iii) Category-Ill: Rs. 1.5 crore /MW for project capacity greater than 25 MWor 30% of the project cost whichever is lower. Keeping in view the technology upgradation and economies of scales, the upper limit of VGF was revised on 17.02.2017 to@ Rs. 1.10 Cr./MW for all projects irrespective of sizes for which tenders were not brought out and the tariff was revised from Rs. 5.50/KWh to Rs. 4.50/kWh. |
|         3 | Scheme for Setting up of 750 MW Grid-connected Solar PV Power Projects under Batch-1 of Phase-II of JNNSM with Viability Gap Funding Support          | The selection of the bidders has been based on the Viability Gap Funding (VGF) required for the project in an ascending order up to the full capacity. Viability Gap Funding (VGF) is limited to 30% of the project cost or 2.5 crore per MW, whichever is lower. Solar Energy Corporation of India (SECI) has signed PPA with such project developers for purchasing entire power from the project for 25 years at 5.45 Rs. per unit (4.75 Rs. per unit for projects                                                                                                                                                                                                                                                                                                                                                                                                  |
|         4 | Scheme for Setting up of 2000 MW Grid-connected Solar PV Power Projects under Batch-III of Phase-II of JNNSM with Viability Gap Funding (VGF) Support | availing accelerated depreciation). The Project developer is provided a VGFbased on his bid. The upper limit for VGF is kept at Rs.1.0 Crore/MW with a pre-determined tariff of Rs. 4.50/kWh.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|         5 | Scheme for Setting up of 5000 MW Grid-connected Solar PV Power Projects under Batch-IV of Phase- II of JNNSM with Viability Gap Funding (VGF) Support | The Project developer is provided a VGFbased on his bid. The upper limit for VGF is kept at Rs. 1.0 crore/MW. SECI will select projects through competitive e-bidding based on minimum VGF sought (quoted in INR/MW), or there may be a provision for quoting a discounted tariff (quoted in INR/kWh) with zero VGF.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|   6. | Grid Connected Rooftop                                                                                                                                     | CFA of up to 30% of project cost /bench mark cost (whichever is lower) is being provided for installation of Grid Connected Rooftop Solar Projects in Residential, Institutional and Social sectors in General Category States and up to 70% of the project cost/benchmark cost (whichever is lower) in Special Category States (i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman& Nicobar Islands). For Govt. sector, achievement linked incentives are being provided. Subsidy/CFA is not applicable for commercial and industrial establishments in private sector.   |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    7 | Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops                                      | The Scheme has provision for Central Financial assistance as follows:  Rs.3 crore/MW or 30%of the project cost, whichever is lower, for Canal TopSPV projects; and  Rs. 1.5 crore/MW or 30%ofthe project cost, whichever is lower, for Canal Bank SPV projects.                                                                                                                                                                                                                                                                                                                                                                           |
|    8 | Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power projects by Central Public Sector Undertakings (CPSUs) under Batch- Vof Phase II ofJNNSM | The Scheme has provision for Viability Gap Funding as follows:  Rs. 1 Cr. /MW, for projects where domestically produced Cells and Modules are used  Rs. 50 Lakh /MW, for projects where domestically produced Modules are used. The Scheme is closed for new sanctions.                                                                                                                                                                                                                                                                                                                                                                   |
|    9 | Off-Grid scheme- SPV lighting systems and power plants, Solar Pumps                                                                                        | 1. LightingSystems A. Street Lights with Lead acid batteries: Benchmark Cost = Rs. 300/Wp: CFA=Rs. 90/Wp B. StreetlightswithLithiumFerroPhosphatebatteries:Benchmark cost= Rs. 435/Wp: CFA= Rs. 130.50/Wp 2.Powerplantswith6hoursbatterybank:Benchmark Cost =Rs. 100/Wp: CFA=Rs. 30/Wp 3. Solar Lamp: Benchmark Cost = Rs. 250/Wp: CFA=Rs. 212.50/Wp                                                                                                                                                                                                                                                                                        |