Lok Sabha Question No. 274 (STARRED), answered on 2016-08-04
Subject: Setting up of Solar Energy Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: DEVAJIBHAI GOVINDBHAI FATEPARA

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA STARRED  QUESTION NO. 274

## TO BE ANSWERED ON 04.08.2016 SETTING UP OF SOLAR ENERGY PROJECTS

## *274.  SHRI DEVAJIBHAI G. FATEPARA :

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

- (a) whether  the  Union  Government  proposes  to  provide  incentives  to  private  companies interested in setting up of solar energy projects in the country and if so, the details thereof;
- (b) the  details  of  solar  energy  projects  set  up  by  the  private  companies  in  the  country including Gujarat, State-wise;
- (c) the  guidelines  laid  down  by  the  Government  for  the  acquisition  of  land by  the  private companies for the said projects; and
- (d) the funds sanctioned, released and utilised for setting up of the said plants, State-wise?

## ANSWER

MINISTER  OF  STATE  FOR  POWER,  COAL  ,  NEW  &  RENEWABLE  ENERGY  &  MINES (SHRI PIYUSH GOYAL)

(a),(b),(c)&(d):

A Statement is laid on the Table of the House.

*********

## STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED  QUESTION NO. 274 FOR 4.8.2016 REGARDING SETTING UP OF SOLAR ENERGY PROJECTS

(a): The  Government  is  promoting    solar  energy  through  fiscal  and  promotional incentives  such  as  capital  and/or  interest  subsidy,  tax  holiday  on  the  earnings  for  10 years,  generation based incentive (GBI),  accelerated depreciation (AD),  viability gap funding  (VGF),  financing  solar  rooftop  systems  as  part  of  home  loan,    concessional excise and custom duties, preferential tariff for power generation from renewables, and foreign  direct  investment  (FDI)  up  to  100  per  cent  under  the  automatic  route  etc.  for promoting  solar  industry  in  the  country.  Scheme-wise  details  of  financial  assistance provided are given at Annexure-I

(b): State-wise  details  of solar  power  generation  capacity  installed  in  the  country including  Gujarat  with  the  help  of  public  as  well  as  private  companies  are  given  at Annexure-II.

(c): The acquisition of land is taken up by the solar project developers as per the land policy of the respective State Governments.

(d): Details of total funds released for utilization for solar energy programmes are as under:-

| Year                      |   Total funds released (Rs. Crore) |
|---------------------------|------------------------------------|
| 2013-14                   |                             692.28 |
| 2014-15                   |                            1158.19 |
| 2015-16                   |                            3146.24 |
| 2016-17 (as on 30.6.2016) |                             779.96 |

Under  some other programmes  also, funds are released state-wise details are given at Annexure-III.

## Details of Schemes and Incentives for promotion of Solar Energy

| Sr. No.   | Scheme                                                                                                                                                       | Central Financial Assistance/Subsidy                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           | Solar Energy                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                             |
| 1.        | 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 from NCEF       | The selection of the bidders has been based on the Viability Gap Funding (VGF) required for the project in an ascending order upto the full capacity. Viability Gap Funding (VGF) is limited to 30% of the project cost or 2.5 crore per MW, whichever is lower to bring the tariff @ Rs. 5.45 per unit (Rs. 4.75 per unit for projects availing accelerated depreciation). |
| 2.        | Grid Connected Rooftop                                                                                                                                       | CFA is 30% of the benchmark for general and 70% for NE and Special Category States for Govt. projects.                                                                                                                                                                                                                                                                      |
| 3.        | Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops                                        |  Financial support of Rs.3 crore/MW or 30% of the project cost, whichever is lower for Canal Top SPV projects and Rs. 1.5 crore/MW or 30% of the project cost, whichever is lower for Canal Bank SPV projects.                                                                                                                                                             |
| 4.        | Development of Solar Cities Programme                                                                                                                        | Financial support up to of Rs. 50 lakh for each city for preparation of the Master Plan alongwith few DPR (up to Rs. 10 lakh), oversight of its implementation (up to Rs. 10 lakh), setting up and functioning of Solar City Cell in the city (up to Rs. 10 lakh) and organizing promotional activities (up to Rs. 20 lakh).                                                |
| 5.        | Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects                                                                                    |  Rs.20 lakhs/MW or 30% of the project cost including Grid-connectivity cost, whichever is lower  CFA @ Rs 25.00 lakh per park for DPR preparation of solar parks, conducting surveys, etc.                                                                                                                                                                                |
| 6.        | Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power projects by Central Public Sector Undertakings (CPSUs) under Batch- V of Phase II of JNNSM |  Viability Gap Funding (VGF) provided through SECI at a fixed rate of Rs. 1 Cr/ MW for projects where domestically produced cells and modules are used and Rs. 50 lakh/ MW in cases where domestically produced modules are used.                                                                                                                                          |

|   Sr. No. | Scheme                                                                                           | Central Financial Assistance/Subsidy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         7 | Operationalization of 300 MW Solar PV Projects by defence establishment and para 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 VGF are as follows: (i) Category-I: Rs.2.5 crore/MW for project capacity up to 5 MW or 30% of the project cost whichever is lower; (ii)Category-II: Rs. 2 crore/MW for project capacity greater than 5 MW up to 25 MW or 30% of the project cost whichever is lower; and (iii) Category-III: Rs. 1.5 crore /MW for project capacity greater than 25 MW or 30% of the project cost whichever is lower. |

Note: CFA stands for Central Financial Assistance.

## ANNEXURE-II REFERRED TO IN REPLY TO PART (b) OF LOK SABHA STARRED NO. 274 FOR 4.8.2016

## STATE-WISE CUMULATIVE INSTALLED CAPACITY FOR GRID CONNECTED SOLAR POWER PROJECTS

| Sr. No.   | State/UT                                  | Total commissioned capacity till 28-07-16 (MW)   |
|-----------|-------------------------------------------|--------------------------------------------------|
| 1         | Andhra Pradesh                            | 885.20                                           |
| 2         | Arunachal Pradesh                         | 0.27                                             |
| 3         | Bihar                                     | 80.10                                            |
| 4         | Chhattisgarh                              | 123.78                                           |
| 5         | Gujarat                                   | 1,123.36                                         |
| 6         | Haryana                                   | 15.39                                            |
| 7         | Jharkhand                                 | 16.19                                            |
| 8         | Karnataka                                 | 239.32                                           |
| 9         | Kerala                                    | 13.05                                            |
| 10        | Madhya Pradesh                            | 790.37                                           |
| 11        | Maharashtra                               | 385.76                                           |
| 12        | Odisha                                    | 66.92                                            |
| 13        | Punjab                                    | 520.70                                           |
| 14        | Rajasthan                                 | 1,294.60                                         |
| 15        | Tamil Nadu                                | 1,294.60                                         |
| 16        | Telangana                                 | 845.10                                           |
| 17        | Tripura                                   | 5.00                                             |
| 18        | Uttar Pradesh                             | 143.50                                           |
| 19        | Uttarakhand                               | 41.15                                            |
| 20        | West Bengal                               | 11.77                                            |
| 21        | Andaman & Nicobar                         | 5.10                                             |
| 22        | Delhi                                     | 23.87                                            |
| 23        | Lakshadweep                               | 0.75                                             |
| 24        | Puducherry                                | 0.03                                             |
| 25        | Chandigarh                                | 6.81                                             |
| 26        | Daman & Diu                               | 4.00                                             |
| 27        | J&K                                       | 1.00                                             |
| 28        | Himachal Pradesh                          | 0.20                                             |
| 29        | Mizoram                                   | 0.10                                             |
| 30        | Others(PSU/channel partner )under Rooftop | 100.31                                           |
| TOTAL     | TOTAL                                     | 8011.43                                          |

## ANNEXURE-III

## ANNEXURE-III REFERRED TO IN REPLY TO PART (d) OF LOK SABHA STARRED NO. 274 FOR 4.8.2016

## DETAILS OF FUNDS RELEASED UNDER NATIONAL SOLAR MISSION

(Rs in crores)

|         |                          | Scheme For Development Of Solar Parks And Ultra Mega Solar Power Projects   | Scheme For Development Of Solar Parks And Ultra Mega Solar Power Projects   | Scheme For Development Of Solar Parks And Ultra Mega Solar Power Projects   | Canal Top &Canal Bank Solar PV Scheme   | Canal Top &Canal Bank Solar PV Scheme   | Off-Grid SPV Scheme   | Off-Grid SPV Scheme   | Off-Grid SPV Scheme   | Off-Grid SPV Scheme     |
|---------|--------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------|-----------------------------------------|-----------------------|-----------------------|-----------------------|-------------------------|
| Sl. No. | States/UTs               | 2014-15                                                                     | 2015-16                                                                     | 2016-17 (as on 30.6.16)                                                     | 2015-16                                 | 2016-17 (as on 30.6.16)                 | 2013-14               | 2014-15               | 2015-16               | 2016-17 (as on 30.6.16) |
| 1       | Andhra Pradesh           | 123.09                                                                      | 102.42                                                                      | 0.50                                                                        | 2.08                                    | 1.82                                    | 0.29                  | 32.05                 | 103.68                | 0.21                    |
| 2       | Andaman & Nicobar island | 0.00                                                                        | 0.25                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 0.00                  | 0.00                  | 0.00                  | 0.00                    |
| 3       | Arunachal Pradesh        | 0.00                                                                        | 0.25                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 4.28                  | 2.61                  | 0.57                  | 0.00                    |
| 4       | Assam                    | 0.00                                                                        | 0.00                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 3.04                  | 0.57                  | 4.39                  | 1.89                    |
| 5       | Bihar                    | 0.00                                                                        | 0.00                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 3.50                  | 6.48                  | 15.41                 | 0.00                    |
| 6       | Chhattisgarh             | 0.00                                                                        | 0.25                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 11.15                 | 30.14                 | 33.27                 | 5.71                    |
| 7       | Delhi                    | 0.00                                                                        | 0.00                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 0.00                  | 1.02                  | 1.24                  | 0.00                    |
| 8       | Goa                      | 0.00                                                                        | 0.00                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 0.07                  | 16.89                 | 0.00                  | 0.00                    |
| 9       | Gujarat                  | 2.75                                                                        | 30.36                                                                       | 0.00                                                                        | 10.50                                   | 10.32                                   | 0.07                  | 16.89                 | 17.96                 | 0.00                    |
| 10      | Haryana                  | 0.00                                                                        | 0.25                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 0.00                  | 6.24                  | 19.22                 | 0.00                    |
| 11      | Himachal Pradesh         | 0.00                                                                        | 0.25                                                                        | 0.00                                                                        | 0.00                                    | 0.00                                    | 20.98                 | 16.28                 | 41.00                 | 14.53                   |
| 12      | Jammu & Kashmir          | 0.00                                                                        | 0.00                                                                        | 0.25                                                                        | 0.00                                    | 0.00                                    | 36.97                 | 19.15                 | 43.94                 | 8.21                    |

| 13   | Jharkhand       |   0.00 |   0.00 |   0.00 | 0.00   | 0.00   |   0.00 |   6.51 |   15.51 |   0.00 |
|------|-----------------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| 14   | Karnataka       |   0.25 | 100    |  80    | 4.82   | 3.39   |   8.4  |   8.34 |    0.66 |   0    |
| 15   | Kerala          |   0    |   2.25 |   0    | 1.50   | 1.21   |   0    |  23.7  |    9.65 |   0    |
| 16   | Lakshadweep     |   0    |   0    |   0    | 0.00   | 0.00   |   6.45 |   0    |    3.75 |   0    |
| 17   | Madhya Pradesh  |   3    |  36.25 |  30    | 0.00   | 0.00   |   0    |  15.7  |    0.41 |   0    |
| 18   | Maharashtra     |   0    |   0.75 |   5    | 0.00   | 0.00   |   0    |  34.31 |   24.42 |   0    |
| 19   | Manipur         |   0    |   0    |   0    | 0.00   | 0.00   |   3.69 |   1.47 |   11.6  |   0    |
| 20   | Meghalaya       |   0    |   0.25 |   0    | 0.00   | 0.00   |   5.02 |   5.73 |    3.12 |   5.2  |
| 21   | Mizoram         |   0    |   0    |   0    | 0.00   | 0.00   |   3.94 |   7.02 |    7.53 |   2.9  |
| 22   | Nagaland        |   0    |   0.25 |   0    | 0.00   | 0.00   |   4.25 |   3.5  |    5.55 |   5.79 |
| 23   | Odisha          |   0    |   0    |   0.25 | 0.00   | 0.00   |   0    |  12.94 |    1.95 |   0    |
| 24   | Puducherry      |   0    |   0    |   0    | 0.00   | 0.00   |   0    |   0.26 |    0    |   0    |
| 25   | Punjab          |   3    |   0    |   0    | 12.00  | 3.00   |   2.03 |  10.24 |    8.24 |   0    |
| 26   | Rajasthan       |  33.44 |  74.91 |   0    | 0.00   | 0.00   |  12.48 | 114.89 |  200.63 |   0    |
| 27   | Sikkim          |   0    |   0    |   0    | 0.00   | 0.00   |   8.2  |   1.41 |    0.28 |   1.46 |
| 28   | Tamil Nadu      |   0    |   0    |   0    | 0.00   | 0.00   |  20.29 |  29.39 |   82.62 |   0    |
| 29   | Telangana       |   2.75 |   0    |   0    | 0.00   | 0.00   |   0    |  22.32 |   15.02 |   0    |
| 30   | Tripura         |   0    |   0    |   0    | 0.00   | 0.00   |   0    |   1.13 |    3.47 |   0    |
| 31   | Uttarakhand     |   0    |   0.25 |   0    | 6.30   | 6.30   |  40.57 |   1.15 |   25.1  |   1.18 |
| 32   | Uttar Pradesh   |   2.75 |  18.23 |   0    | 2.83   | 0.00   |   0.17 |  44.81 |   38.51 |   0    |
| 33   | West Bengal     |   0    |   0.25 |   0    | 3.00   | 4.80   |   0    |   1.67 |    0.34 |   0    |
| 34   | Chandigarh      |   0    |   0    |   0    |        |        |   0    |   2.76 |    0    |   0    |
| 35   | others          |   1.73 |   2.88 |   1.15 | 0.43   | 0.31   |   0    |   0    |  204.4  |   3.79 |
| 35   | Channel Partner |   0    |   0    |   0    | 0.00   | 0.00   |   0    |   0    |   60.75 |   0    |
|      | Total           | 172.75 | 370.29 | 117.15 | 43.46  | 31.14  | 195.84 | 497.56 | 1004.19 |  50.86 |