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Central Financial Assistance provided to States for Promotion of Solar Energy – EQ Mag

Central Financial Assistance provided to States for Promotion of Solar Energy – EQ Mag

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The government provides financial assistance to various states under different schemes. The details of major operational schemes are given at Annexure –I.

The details of Central Financial Assistance provided to the States of Rajasthan, Maharashtra, Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Gujarat, etc. during the last 4 year and the current year are given at Annexure-II.

Solar energy is being generated across all these States.

DETAILS OF SCHEMES PRESENTLY OPERATIONAL AND AVAILABLE CENTRAL FINANCIAL ASSISTANCE

Scheme Application CFA    pattern
a) Scheme for development of Solar Parks and Ultra Mega Solar Power Projects Setting up of at least 50 solar

parks of 40,000 MW capacity in the Country

Rs. 20 Lakh per MW or 30% of the project cost, whichever is lower. Also, up to Rs. 25 lakhs per Solar park for preparation of Detailed Project Report (DPR).
b) CPSU Scheme Phase-                  II

(Government Producer Scheme)

Total size of the scheme: 12000 MW Viability Gap Funding (VGF) of up to Rs. 0.7 Cr./MW (for Tranche-I &II) / Rs 0.55 crore/MW (for tranche- III) is provided. Use of domestically manufactured solar PV cells and modules is mandatory.
C)     Phase-II      of Grid     Connected Rooftop Programme 4000 MW      in

 

residential sector

The CFA amount for the RTS capacity installed by a consumer is common for entire country which is as under:

  1. Individual Household – For first 3 kW: Rs. 14588/ kW and for RTS capacity beyond 3 kW and upto 10 kW: Rs. 7294/kW.
  2. Resident Welfare Associations/Group Housing Societies (RWA/GHS) – Rs. 7294/kW for common facilities up to 500 kWp @ 10 kWp per house.

CFA for residential consumers of North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh,   UT   of   Jammu   &   Kashmir,   Ladakh,

Lakshadweep, and Andaman & Nicobar Islands.

 

Scheme Application CFA    pattern
    All residential consumers of these states/UTs applying for installation of rooftop solar on the National Portal for Rooftop Solar on or after date of issuance of this OM will be eligible to   get higher       CFA       as        mentioned        below.: (i). Individual Household – For first 3 kW: Rs. 17662/ kW and for RTS capacity beyond 3 kW and upto 10 kW:           Rs.                                8831/kW.

(ii). Resident Welfare Associations/Group Housing Societies      (RWA/GHS)      –      Rs.      8831/kW for common facilities up to 500 kWp @ 10 kWp per house.

Further, incentive is being provided to Discoms based on percentage of year- wise installed capacity achieved against previous year’s cumulative installation.

d)             Pradhan Mantri Kisan Urja Suraksha  evam Utthaan Mahabhiyan (PM- KUSUM)
  1. Component- A: 10 GW Installation of Renewable power plants (incl. solar) up to 2 MW capacity on barren/agricul ture land.
  2. Component- B: Installation

of 20 lakh

For Component-A, DISCOM would be eligible to get Procurement Based Incentive (PBI) @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the commercial operation date.

For Components-B and C, CFA of 30% of the benchmark cost or the tender cost of standalone pump or solarization of existing pump, whichever is lower, will be provided to the beneficiary. However, in North Eastern states including Sikkim; states of Himachal Pradesh and Uttarakhand; UTs of Jammu &   Kashmir   and   Ladakh;   and   island   UTs   of

Lakshadweep and A&N, CFA of 50% of the

 

Scheme Application CFA    pattern
  standalone solar pumps up to 7.5 HP capacity each for irrigation purpose benchmark cost or the tender cost, whichever is lower will be provided.

The State Government will also provide subsidy of 30% of the cost of standalone pump/ Solarization, or higher. State may also opt for feeder level

Solarization under Component-C.

(c) Component- C: Solarization of 15 lakh existing agricultural pumps up to

7.5 HP capacities each.

 
e)         Production To promote The Scheme has provision for PLI (Tranche-I: Rs
Linked    Incentive manufacturing of 4500 crore Tranche-II: Rs 19500 crore) to the
(PLI)        Scheme high efficiency selected solar PV module manufacturers for five
‘National solar PV modules years post commissioning, on manufacture and sale
Programme         on in the country of High Efficiency Solar PV modules. The quantum
High      Efficiency   of PLI eligible for disbursal depends upon: (i)
Solar                  PV   quantum     of    sales     of    solar     PV    modules;      (ii)
Modules’   performance parameters (efficiency and temperature
    coefficient of maximum power) of solar PV modules
    sold; and (iii) percentage of local value addition in
    modules sold.

DETAILS OF CFA PROVIDED IN SOLAR SCHEMES TO STATES OF RAJASTHAN, MAHARASHTRA, HARYANA, PUNJAB, UTTAR PRADESH, MADHYA PRADESH, GUJARAT DURING LAST 4 YEAR AND THE CURRENT YEAR

(Rs. in Cr, as on 31-01-2023)

S. No. State 2018-19 2019-20 2020-21 2021-22 2022-23
1 Gujarat 417.99 81.19 101.30 1242.71 1114.65
2 Haryana 27.50 22.44 65.89 175.08 118.18
3 Madhya Pradesh 132.90 159.33 93.69 64.95 170.14
4 Maharashtra 182.63 117.32 114.48 95.16 304.58
5 Punjab 39.54 25.94 31.85 65.60 55.93
6 Rajasthan 237.01 213.31 668.67 305.84 258.84

This information was given by the Union Minister of Power Sh. R.K. Singh in the Rajya Sabha Today.

Anand Gupta Editor - EQ Int'l Media Network