A number of incentives being provided by Government for implementation of major renewable energy programmes – Union Power & NRE Minister Shri R. K. Singh – EQ Mag
The details of incentives being provided as Central Financial Assistance (CFA) for the implementation of major renewable energy schemes/ programmes by the Ministry are given in Annexure.
The Ministry of New & Renewable Energy (MNRE), Government of India, has been consistently bringing out policies for developing and facilitating domestic renewable energy equipment manufacturing in the country.
Some of the recent initiatives undertaken to promote solar & wind energy domestic equipment manufacturing in the country, inter-alia, includes the following:
Solar Energy:
(i) Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: The Government of India is implementing the Production Linked Incentive (PLI) Scheme under National Programme on High Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore.
This Scheme has provision for Production Linked Incentive (PLI) to the selected solar PV module manufacturers for five years post commissioning, on manufacture and sale of High Efficiency Solar PV modules.
Domestic Content Requirement (DCR): Under some of the current schemes of the MNRE, namely CPSU Scheme Phase-II, PM-KUSUM Component B and Grid-connected Rooftop Solar Programme Phase-II, wherein government subsidy is given, it has been mandated to source solar PV cells and modules from domestic sources.
Preference to ‘Make in India’ in Public Procurement: Through implementation of ‘Public Procurement (Preference to Make in India) Order’, procurement and use of domestically manufactured solar PV modules and domestically manufactured solar inverters has been mandated for Government/ Government entities.
Imposition of Basic Customs Duty on import of solar PV cells & modules: The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells and modules, with effect from 01.04.2022.
Discontinuation of Customs Duty Concessions: MNRE has discontinued issuance of Customs Duty Concession Certificates for import of material /equipment for initial setting up of solar PV power projects with effect from 02.02.2021.
Wind Energy:
Government has extended concessional custom duty exemption on certain components required for manufacturing of wind electric generators, including some raw materials for blades of wind turbines, till 31.03.2025.
(a) The details of top five States with maximum installed solar energy capacities are as follows:-
| State | Solar Power Installed Capacity as on 28.02.2023 (In MW) |
| Rajasthan | 16405.75 |
| Gujarat | 8887.72 |
| Karnataka | 8110.48 |
| Tamil Nadu | 6536.77 |
| Telangana | 4657.18 |
The details of top five States with maximum installed wind energy capacities are as follows:-
| State | Wind Power Installed Capacity as on 28.02.2023 (In MW) |
| Tamil Nadu | 9983.12 |
| Gujarat | 9925.72 |
| Karnataka | 5276.05 |
| Maharashtr a |
5012.83 |
| Rajasthan | 4681.82 |
Tidal energy is still in Research & Development (R&D) phase and has not been implemented on a commercial scale in the country.
Annexure
Incentives being provided as Central Financial Assistance (CFA) for the implementation of major renewable energy schemes/ programmes.
| Scheme/ Programmes | Incentive presently eligible as per the Scheme |
| a) Grid Connected Rooftop Solar PV Power Projects |
Incentives up to 10% of project cost depending upon achievements in capacity addition above baseline. Vide its OM dated 27.01.2023, Ministry has fixed the CFA for the entire country. The revised CFA rates would be applicable on all future bids and the bids which are scheduled to be closed after 15 days of issuance of this OM. The revised rates are as follows: For general category States/UTs:
|
| b) Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for grid-connected Solar Photovoltaic (PV) Power Projects by the Government
Producers |
Viability Gap Funding (VGF) support up to Rs 55 lakhs per MW to the CPSUs/Govt. Organizations entities selected through competitive bidding process. |
| c) PLI Scheme ‘National Programme on High Efficiency Solar PV Modules’ | The beneficiaries are eligible for Production Linked Incentive (PLI) on production and sale of solar PV modules. The quantum of PLI eligible for disbursal depends upon: (i) quantum of sales of solar PV modules; (ii) performance parameters (efficiency and temperature coefficient of
maximum power) of solar PV modules sold; and (iii) percentage of local value addition in modules sold. |
| d) Solar Park Scheme | Up to 25 lakhs per Solar park, for preparation of Detailed Project Report (DPR).
20 Lakh per MW or 30% of the project cost, whichever is lower, for development of infrastructure. |
| e) PM-KUSUM scheme | Component A: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants
Benefit available: Procurement Based Incentive (PBI) to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI that payable to DISCOMs is upto Rs. 33 Lakh per MW. Component B: Installation of 20.00 Lakh Stand-alone Solar Pumps Benefit available: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agriculture pump is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of |
| Scheme/ Programmes | Incentive presently eligible as per the Scheme |
| 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump is provided.
Component C: Solarisation of 15 Lakh Grid Connected Agriculture Pumps including through feeder level solarisation Benefit available:
and Andaman & Nicobar Island, CFA of Rs. 1.75 crore per MW is available. |
|
| f) Green Energy Corridor Scheme
(for development of intra-state transmission system for RE projects) |
GEC Phase-I: CFA of 40 % of DPR cost or awarded cost whichever is lower. GEC Phase-II: CFA of 33 % of DPR cost or awarded cost whichever is lower. |
| g) Biomass Programme |
(Maximum CFA- Rs. 5.00 Crore per project) |
| h) Waste to Energy Programme |
Note:
(Shelters) should be registered with the respective State Government. |
| Scheme/ Programmes | Incentive presently eligible as per the Scheme |
| i)Biogas Programme |
The eligible CFA would be 20% higher than Standard CFA in for NER, Island, Registered Gaushalas and SC/ST beneficiaries |
| j) R&D programme | The Ministry encourages research and technology development proposals in collaboration with the industry and provides upto 100% financial support to Government/non-profit research organizations and upto 50-
70% to Industry, Start-ups, Private Institutes, Entrepreneurs and Manufacturing units. |
This information was given by the Union Minister of New Renewable Energy Sh. R.K. Singh in the Rajya Sabha Today.
