Report
Report
Report
Chapter I
Introduction
This report gives information on all the possible RE areas that have scope for investment.
It offers detailed information on the existing and potential strength of each programme,
the potential sites in the country, the achievements to date, specific investment
opportunities and subsequent benefits that can be accrued, resources and support
available, and fiscal and financial incentives to encourage investment. It also gives a
glimpse of the policies and procedures under each RE area. The technology areas appear
Wind Power
Small Hydro
Biomass Power
Biomass Cogeneration
Biomass Gasifiers
Solar Photovoltaics
Solar Thermal
Biogas
New Technologies
Hydrogen Energy
Geothermal Energy
Tidal Energy
Bio-Diesel
Chapter II
Special emphasis is being given to the generation of grid quality power from renewable
sources of energy.
MNES has issued guidelines to all the states on policies in this sector to encourage
commercial development. The total installed capacity of power generation from various
non-conventional energy sources has reached about 4872.5 MW. The details of specific
(Upto 30-09-04)
Highlights
India is the fifth largest wind power producer in the world after Germany, the
USA, Denmark and Spain, with an installed capacity of about 3000 MW. (Table
1.1)
The gross wind energy potential in India has been estimated at 45,000 MW.
Wind is one of the largest RE source in the country, based on mean annual wind
assess the wind potential is one of the largest programmes of this kind in the
world covering around 1000 wind monitoring and mapping stations in 25 states
and union territories. This programme is being implemented by the state nodal
agencies (SNAs) and C-WET through the Wind Energy Survey Project. WRAP
States with high wind power potential are Tamil Nadu, Gujarat, Andhra Pradesh,
Karnataka, Kerala, Madhya Pradesh and Maharashtra. About 11.3 billion units of
electricity have been fed to various state grids from wind power projects (Table
1.2). Almost 80% of the power thus generated has been used for captive
Some 30 project sites have been developed in the high potential states under the
About a dozen domestic companies are manufacturing wind power turbines and
centres:
requirements of WEGs. The Controller has been fabricated and field tested
wind turbines with weak grids. The guidelines have been circulated to the
potential states.
Table 2.1
State-wise Wind Power Installed Capacity in MW (As on 31-12- 2004)
Demonstration Private Sector Total
State
Projects Projects Capacity
Andhra Pradesh 5.4 95.9 898.8
Gujarat 17.3 202.6 202.0
Karnataka 7.1 268.9 209.2
Kerala 2.0 0.0 2.0
Madhya Pradesh 0.6 27 22.6
Maharashtra 8.4 402.8 407.4
Rajasthan 6.4 256.8 178.5
Tamil Nadu 19.4 1658 1361.6
West Bengal 1.1 0.0 1.1
Others 0.5 0.0 0.5
Total 68.2 2912.0 2980.2
Table 2.2
Total Generation from Wind Power Projects (kWh)
(As on 31-12- 2004)
State Generation
Andhra Pradesh 622340136
Gujarat 1304183451
Karnataka 1186445699
Kerala 15862500
Madhya Pradesh 171752939
Maharashtra 2395479421
West Bengal 1651762
Tamil Nadu 10399971308
Rajasthan 73303417
Orissa 1174856
Total 16172165489
Cost Economics
Capital cost of wind power projects ranges from Rs 4.5-5.5 crore per MW
site)
The costs are expected to decline and profitability increase with technology
improvements, and increase in size of turbines, and optimal planning and site
selection
A cost ceiling of Rs 3.5 crore/MW has been fixed for the determination of MNES
The wind power programme in India aims at catalysing commercialisation of wind power
R&D support
medium wind speeds and improved capacity utilisation, cost reduction and high
Policy support
Targeted capacity for the next five years is about 1,500 MW. This will require an
commercial developers.
Investment Opportunities
Opportunities exist for Indian companies for joint ventures in the production and services
As developers/project promoters
Consultancy
O&M
Opportunities also exist for export of wind related services such as:
Consultancy
Formulation of policies
Project planning
The following basic guidelines have been laid down for healthy and orderly growth of the
sector:
Capacities to be announced for each windy location in line with power evacuation
Detailed Project Reports (DPRs) must be submitted and must include complete
information on:
Site
Selection of equipment
Cost of generation
Quality aspects:
manufacturers
o O&M contract
o Spare-parts stock
Wheeling, Banking, Third Party sale and Buy-back facility by State Electricity
Boards (SEBs)
Soft loans from the Indian Renewable Energy Development Agency Ltd (IREDA)
The following fiscal and promotional incentives are available from the Central
Government:
Nine states have introduced policies for wind power based on MNES guidelines:
Buy-back facility at minimum price of Rs 2.25 per kWh (Base year 1994)
Financial Assistance
In case of state government projects, 60 per cent cost of the wind turbine equipment,
3.5 crore/MW) would be borne by the Central Government. All other costs will be met by
IREDA loans for wind power projects are available under different schemes, as follows:
Project financing
Equipment financing (up to 1 MW per party per financial year for grid-connected
projects)
Manufacturing equipment.
Project Financing
Equipment financing (Up to 1MW per party per financial year, Grid connected)
equipment.
Manufacturing of Equipment
While grid-connected power generation from wind is a key focus area for MNES,
incentives are available for other applications of wind energy such as water pumps and
battery chargers. These are covered under Solar Energy Technologies Stand-alone
applications of Hybrid Systems and Wind Energy. For more information on the various
Highlights
MW. In just 12 years, this capacity has increased nearly four-fold to 250 MW
SHP between 3-25 MW were brought under the purview of MNES in 1999-2000
At the end of Dec 31,2004,the total installed capacity of SHP projects upto 25MW
Most SHPs are grid-connected. However, there are some projects, which are
SHPs are developed in the potential regions either by SEBs or the state agencies
The 14 potential states which have announced their policies for private sector
participation in the SHP sector are Himachal Pradesh, Uttar Pradesh, Uttaranchal,
started by MNES. This would enable the direct use of mechanical power for
different applications
India has a well-established manufacturing base for a full range and type of SHP
equipment. There are over eight manufacturers in the country in the field of SHP
who are supplying various types of turbines, generators and control equipment.
Keeping in view the overall policy of the Government of India to encourage private
sector participation in the field of power generation, the thrust of SHP programme is
to set up commercial SHP projects. 14 states have suitable policies in this direction. A
programme
technologies
applications
Table 3.1
MNES' Database of Small Hydro Potential Sites Identified in India up to 25 MW
Capacity
Sl No Name of State Identified Sites up to Total Capacity
25 MW (in MW)
1 Haryana 22 30.05
2 Himachal Pradesh 323 1,624.78
3 Jammu & Kashmir 201 1,207.27
4 Punjab 78 65.26
5 Rajasthan 49 27.26
6 Uttar Pradesh 211 267.06
7 Uttaranchal 354 1,478.23
8 Gujarat 290 156.83
9 Madhya Pradesh 85 336.32
10 Chattisgarh 47 57.90
11 Maharashtra 234 599.47
12 Andhra Pradesh 286 254.63
13 Karnataka 230 652.61
14 Kerala 198 466.85
15 Tamil Nadu 147 338.92
16 Bihar 92 194.02
17 Jharkhand 89 170.05
18 Orissa 161 156.76
19 West Bengal 68 202.75
20 Sikkim 145 182.62
21 Arunachal Pradesh 492 1,059.03
22 Assam 46 118.00
23 Manipur 96 105.63
24 Meghalaya 98 181.50
25 Mizoram 88 190.32
26 Nagaland 86 181.39
27 Tripura 8 9.85
28 A&N Island 6 6.40
29 Goa 3 2.60
. Total 4,233 10,324.37
Investment Opportunities
Industry-based R&D
projects
Consultancy
The facilities available in the states include Wheeling, Banking, attractive Buy-back rate,
and facility for Third-party sale among others. In order to accelerate development of SHP
Interest subsidy for commercial projects - up to 7.5 per cent in the hilly regions
Under special incentives for the northeastern region and Sikkim, capital grant of
up to Rs 7.5 crore per MW is available for SHP projects in the region. The
whichever is lower. The R&M scheme has been extended to cover SHP projects
75 per cent of actual cost, in mechanical mode and Rs 1.0 lakh or 75 per cent of
IREDA, the financial institution under MNES, provides Term loans for setting up
Highlights
Currently, biomass contributes 14 per cent of the total energy supply worldwide
o Thermal or heat
generated from fuel wood, crop residues and forest sources(about 500 million
initiated during the year to help identify locations where the density of biomass
o Gasification
o Direct combustion
(Table 4.2)
A cogeneration project with 87 Ata pressure and 5150C have been commissioned
in Andhra Pradesh and three such projects are under implementation in Tamil
Table 4.1
Potential for Bagasse-based Cogeneration in Major Sugar Producing States in India
State Potential Commissioned till
(in MW) December 31, 2004
(in MW)
Maharashtra 1,000 32.5
Existing Projects
The current status of Biomass Power and Cogeneration projects commissioned is:
Table 3.2
The Ministry had undertaken Taluka level Biomass Resource Assessment Studies
during the 9th Plan with a view to assess biomass availability for power generation in
500 Talukas in the country. 475 studies have been completed in 23 States; A project
on Biomass Resource Atlas for India is being jointly undertaken by Indian Institute of
Science (IISc) and Regional Remote Sensing Service Centre (RRSSC), Bangalore to
integrate the data obtained from filed-level study on biomass assessment and inputs
Gasification
Industrial cogeneration
and viability of power generation from biomass that are either wastage or
power) mode. Each plant will have a minimum eligible capacity of 1MW,
power to grid)
Investment Opportunities
o Joint Venture: A foreign investor can enter into a Joint Venture not only
o A foreign investor could enter into a Joint Venture with an Indian partner
who understands the local environment and could exploit the business
MNES supports the following R&D initiatives and has identified them as thrust
systems
fossil fuels
electricity by the SEBs and fiscal incentives such as concessional custom duties;
exemption from excise duty and sales tax; tax holiday and accelerated
interfaced and /or captive power projects (with or without surplus power
to grid)
o The details of Central Financial Assistance under the NBGP for various
thermal/cooking.
national programme
cogeneration projects
The details of Biomass Gasifier Programme entailing the objectives, the eligibility
criteria, pattern of financial assistance / incentives for eligible projects and other
promotional activities, including the procedure for availing the said financial
Implementation
The Programmes will be implemented through the State Governments, State Nodal
Projects
Joint Commissioning Report (JCR) by the State Nodal Agency, Manufacturer and
CFA for the sanctioned projects will be released to the State Nodal Deptts. / SNAs
Initial release of 20% of the total MNES cost share would be made alongwith the
equipment at site.
Final instalment of 10% on MNES cost share would be released after three
The Scheme will be implemented through State Nodal Agencies. The terms of
release of CFA shall be on the same pattern as per (b) (ii) above.
Agencies. The terms of release of CFA shall be on the same pattern as per (b)(ii)
above.
The pattern of releases for promotional activities and for applied R&D Projects
Highlights
about 27 million tonnes of municipal wastes and about 4400 million cubic meters
of sewage.
mills, distilleries, pulp and paper mills, dairies, slaughter houses, tanneries,
pharmaceutical industries, etc. These estimates translate into a potential for about
1000 MW equivalent of power from urban wastes and over 700 MW from
industrial wastes. From the ongoing exercise for preparing the National Master
MW.
management practices and techniques helps not only to reduce the quantity of
wastes at source but also facilitates their treatment and disposal in environment
50% to over 90%, which, in turn, can greatly reduce the demand for land, which
is already scarce in cities and the cost of waste transportation to far-away landfill
sites.
efforts for reducing Green House Gases Emissions and Climate Change related
initiatives.
Anaerobic Digestion/Biomethanation
Incineration
Densification/Pelletisation
In addition to the above, there are some other conversion technologies such as pyrolysis,
gasification, alcohol fermentation, slurry carb process, plasma are technology etc.
Ministry's Initiatives
In view of the vast potential for recovery of energy from wastes and associated benefits
recovery of energy from Urban & Industrial wastes. Some details of these programmes
are as follows:
for implementing such projects on the basis of Build Own Operate and
Transfer (BOOT), Build Operate and Transfer (BOT), Build Own and
o The total installed capacity of these projects was 15.65 MW,thus making
o The financial incentives being provided under the scheme are as follows:
Other Incentives
processes
biomethanation processes
biomethanation processes
demonstration
Capacity Building
Investment Opportunities
Industry Participation: Corporate bodies and large industrial groups must join hands
with R&D institutions and further develop these fully matured technologies. Criteria for
Industrial sectors are eligible under this programme. While rice husk,
straw, stalks, bagasse and fines of biomass origin are not covered under
renewable nature from Urban and Industrial sectors, including rice husk
Coal rejects, dolochar, oil refinery waste etc. shall not be eligible.
generation from biogas being produced from Urban and Industrial wastes
promoters, within first five years of the project operation, the total subsidy
scheme.
etc, or a combination thereof shall be eligible under this programme. Power generation
through steam turbine route shall be permitted for a minimum steam pressure of 42 bars.
Note: Amount of subsidies would be determined on the basis of net output i.e. gross
combinations in terms of microbial parameters and for actual projects in terms of site
specific availability; evolution of optimal digester designs along with their O&M routines
Characterisation of different waste streams (such as distillery spent-wash, dairy waste and
food processing industry wastes), and corresponding O&M routines in the existing
Upflow Anaerobic Sludge Blanket (UASB) systems for optimal performance. Laboratory
and pilot-scale studies to understand the process of granulation and its application to
Development of scientific landfills with gas recovery for Class-I towns with
Case studies for cities where firm tie-ups for land, garbage delivery at site, and
Focus on towns, which have maximum potential in this area. Feasibility Studies
R&D on removal of inhibitory and toxic components of waste upstream of the energy
recovery system to improve the system efficiency. R&D on removal of lignin from black
liquor in paper industry. Processes for chromium removal in leather industry effluents
the life of the engines or the combustors (particularly due to H2S content of the
biogas)
State Governments of Uttar Pradesh, Madhya Pradesh, Punjab, Rajasthan, Kerala, Tamil
Nadu, Andhra Pradesh, Maharashtra, Haryana and Karnataka have announced policy
measures pertaining to allotment of land, supply of garbage and facilities for evacuation,
are being made to persuade other State Governments to announce their policy guidelines
Implementation Arrangements
The scheme is implemented through SNAs, government departments, and urban local
bodies who have to forward the project proposals to MNES in accordance with a
prescribed procedure for applying for Central financial assistance. This scheme is
applicable to both private as well as public sector entrepreneurs and investors having
The scheme is implemented after MNES approves initial project profiles that have been
submitted. Financial support required to recover energy from wastes will also be granted
on application though project profiles, and is applicable to both private and public sector
Chapter III
Highlights
There are about 300 clear sunny days in a year in most parts of India. This is equal to
over 5,000 trillion kWh/year, which is far more than the total energy consumption of the
country in a year
The daily average solar energy incident over India varies from 4-7 kWh/m2,
telecommunications, defence, and railways among others. In the last two decades,
the cost of PV has gone down significantly, increasing affordability for dispersed
rural applications
A number of SPV systems have been installed in various parts of the country
during the year. The number of systems installed so far under the programme is as
follows.307, 763 home lighting systems, 52,102 street lighting systems, and 5,000
alone and grid-interactive PV power plants have been installed as on March 31,
2004.
An all India SPV programme to develop cost-effective PV technology and its applications
for large-scale diffusion in different sectors, especially in rural and remote areas is under
R&D
Following is a list of some of the priority areas for research support in SPV technology.
Development of crystalline silicon thin film layers and low-cost substrates for
deposition of films
films
demonstration
applications
Applications
conditioning units
type of PV modules
power plants, PV pumps and other type of systems for system design
validation/improvements
Development of solar roof systems and electronics used in solar roof systems
PV Products
Solar lanterns, home lighting systems/solar home systems, street lighting systems, stand-
alone PV power plants, refrigerators for medicines and vaccines, solar PV water-pumping
systems for agriculture and related uses, and other applications of PV technology,
Indian standards for PV modules and other related aspects have been developed. Most
standards are in line with the relevant International Electro-technical Commission (IEC)
standards. MNES has drawn specifications for the purchase of solar lanterns, solar home
systems, street lighting and solar water pumping systems under its capital and interest
subsidy programmes.
The Solar Energy Centre (SEC) in Gurgaon, Haryana, is the lead SPV training and test
centre set up by MNES. There are three test centres that have been authorised to test solar
lighting systems like solar home systems, solar street lighting systems and solar lanterns.
test centre for the testing and certification of solar home systems, and street lighting
systems and solar lanterns for supply under the MNES programme. Standards for solar
Non-grid applications in solar PV include solar lanterns, home, community and street
lighting systems, water pumping for agricultural and related uses, stand-alone power
plants, solar generators, solar powered refrigerators for remote health centres or clinical
inaccessible areas. Some of these systems are covered under the subsidy programme of
MNES has been implementing through IREDA and SNAs, a programme on deployment
of SPV water pumping systems for agriculture and related uses, with the objective of
performance and utilisation, for meeting specific needs of the users in different agro-
climatic conditions. MNES provides an interest subsidy on the loan component given by
During the tenth five-year plan, the Ministry proposes to establish a SPV power capacity
of 5 MW for "niche" applications, viz., voltage stabilisation at the tail-ends of rural grids,
centralised system for peak shaving or demand side management in urban centres and
The manufacturers of solar cells and modules can implement the project by entering into
a suitable power purchase agreement (PPA) with the SEBs. MNES also encourages the
industry and private sector to set up grid interactive SPV power projects.
Investment Opportunities
Opportunities exist in all the major thrust areas as listed above under "Major
Thrust Areas".
R&D
Joint Ventures
A number of companies have entered into joint ventures with leading global PV
manufacturers. There are no specific conditions laid down by MNES for the formation of
joint ventures. General conditions laid down by the Ministry of Industry, Secretariat for
Industrial Approvals and the Reserve Bank of India are applicable for this sector.
Export-oriented Units
It is possible to set up a manufacturing plant as a 100 per cent EOU. Generally, these are
permitted duty-free import of raw materials and components. They are also eligible to sell
Technology Transfer
modules especially based on thin film materials, and is able to offer technology for the
Technology Development
Financial Assistance
The details of financial incentives available from MNES are given in appendices.
Rs 1 lakh is offered for the preparation of a DPR for the grid-interactive SPV
power project. In addition, MNES provides 2.5 per cent of its share of project
Highlights
One of India's first and among the largest in the world, the 140 MW Integrated
project at Mathania near Jodhpur in Rajasthan has been sanctioned. The solar
combined cycle power plant of 105 MW capacity will be run on conventional fuel
cookers, solar drying applications and solar thermal building designs. These
technologies on the other hand help conserve energy in heating and cooling
Solar Water Heating: Around 700,000 sq. m collector area for water heating has
been installed. Solar water heating systems are now being manufactured on a
commercial scale at around 1,00,000 sq. m collector area annually. There are
Solar Cookers: Over 5,41,000 box solar cookers have been sold in India since
the inception of MNES. There are about 30 manufacturers of these solar cookers.
Concentrating type solar cookers are also being installed under a demonstration
scheme. These include Dish Solar cooker, community cooker for indoor cooking
and solar steam cooking system. The world's largest solar steam cooking system
has been installed at Tirupathi, Andhra Pradesh, which cooks food for 15,000
Solar Air Heating: Solar heating systems comprising over 5,000 sq. m collector
area has been installed in India. Most of these systems are installed in industrial
Integration of the solar system with their existing system has helped them in
programmes.
constructed
demonstration programme.
A 200 litre per day solar water heating system installed in Karnataka by IREDA.
Solar water heaters, solar cookers and solar dryers are priority areas for meeting
and industrial sectors. Soft loans are available for promotion of these applications.
Over 700,000 sq. m of solar water heating collectors, which could heat more than
35 million litres of water to a temperature of 60-70 C every day, have so far been
installed in the country. Hot water applications are in the sectors of:
etc
o Bottling plants and distilleries for syrup making, bottle cleanings, etc
To ensure quality and performance of the systems, the Indian National Standards on solar
flat plate collectors and solar cookers have been brought out by the Bureau of Indian
Standards (BIS). Revised standards on solar water heating collectors and for solar
BIS approval (ISI mark) is compulsory for any solar water heating system to be installed
under projects seeking soft loan from the commercial banks or IREDA.
Apart from the Solar Energy Centre, six Regional Test Centres established by MNES in
different parts of the country, test solar collectors and cookers and provide technical
backup services. These Centres also act as technical back-up units under the solar thermal
There are now more than 70 BIS-approved manufacturers at present, with a production
capacity of more than 2,00,000 sq m collectors per year. The annual sale of solar
collectors is estimated at around 1,00,000 sq. m. Export of solar collectors and systems
Solar shops called 'Aditya' are being established in different parts of the country to
promote spot sale of different RE products, servicing and repair of the devices, and
dissemination of information. There are currently 48 such shops. MNES provides a one-
time grant for setting up of these shops, besides some grant for publicity. These shops can
shops are also being established directly by State Governments at their own
lands/buildings.
IREDA has changed its financing norms for solar thermal systems. The repayment
period for loans has now been made 6 years including moratorium period. The
The rate of interest for loans to end users in the commercial category through
Under the new schame, Banks have been authorized to finance solar water heaters
without any upper limit to the capacity of the system. The subsidized rate of
interest is 5%.
Many state governments are also pursuing this programme by offering various
incentives
Details of the soft loan programme on solar water heaters through IREDA and
network and repair/servicing facilities at sales outlets, etc. and also towards their
service charges. This support is linked with actual sale of box-type solar cookers.
SEWs (self employed workers), NGOs etc for selling cookers through their own
efforts. SEW's earn a living by repairing and servicing of solar cookers also at the
doorsteps of users
Under a loan scheme of MNES, interest-free loans are given to users for purchase
demonstration scheme.
their products
their respective states, MNES has instituted an annual award for the best
performance
Governments/Agencies
One time grant for private shops/solar counters through State Governments
Details of incentives available for solar cookers and Aditya Solar shops may be seen in
appendix.
Hybrid Systems
For reliable supply of power in remote locations or inaccessible rural areas it is possible
and sometimes necessary to design and set up hybrid system which combine the
advantages of two different energy technologies. These could be either two renewable
say PV or wind, to take care of base load requirements and the conventional systems (say
diesel generator) to supplement for peak load requirement. An integrated hybrid system
would ensure that power supply could be maintained at an optimum level during cloudy
days (for PV system) or low wind conditions (for wind electric generators). MNES and
IREDA provide financial assistance for some of the hybrid systems (see appendix).
Stand-alone Wind Technologies
While grid-connected power generation from wind is a focus area for MNES, incentives
are available for other applications of wind energy such as water pumping windmills and
wind battery chargers. The terms of the financial incentives are given in appendix.
Chapter IV
4.1 Biogas
Highlights
The main programmes under the Rural Energy are Biogas (including community,
institutional and the night soil-based programme), Improved Chulhas (Cookstoves) and
o provide fuel for cooking purposes and organic manure to rural households
Both floating-drum and fixed-dome models are being promoted. Nearly 3.37
million plants have been installed till date, which is nearly one-fourth of the
A large manufacturing industry for biogas equipment such as stoves, burners and
Investment Opportunities
Special incentives are available for turnkey entrepreneurs in rural areas to carry
out biogas installation and maintenance as a commercial venture. Over 500 such
Besides dedicated nodal departments and nodal agencies, Central agencies such as
the Khadi and Village Industries Commission (KVIC) also promote NPBD.
Commercial and cooperative banks provide loan for setting up of biogas plants
There are Biogas Development and Training Centres functioning in nine major
Highlights
Improved chulhas are scientifically designed for optimal regulation of heat flow
Investment Opportunities
country.
IREP Blocks
o provide the most cost-effective mix of various energy sources and options
so as to ensure regular and planned flow of energy inputs for meeting the
Biogas Plant
Incentives Available
The Centrally Sponsored Scheme provides grants-in-aid to partially meet the cost
of supporting staff in the IREP project cells at the state and block levels, training
State Sector outlays are utilised for the implementation of IREP block energy
incentives for various energy devices, extension and other related activities and
Chapter V
New Technologies
Besides solar, wind and biomass, there are other eco-friendly and renewable sources from
which energy can be tapped for varied applications in India. These are:
Hydrogen Energy
Geothermal Energy
Biofuels
Highlights
The focus is on the development and applications of fuel cell technology to generate
Because of the modular nature, fuel cells are ideally suited for decentralised power
generation
Other fuels can also be used to produce hydrogen gas with the aid of reformers
Industrial uses
Surface transportation
Residential applications
Thrust Areas
R&D in fuel cell technology specifically in the areas of material and stack
cells
Ongoing Projects
fuel cell
Highlights
Hydrogen as a clean fuel and energy carrier, can be used in a broad range of
Support for R&D projects for the production, storage and applications of
hydrogen for power generation and transport sector as well as training and
Hydrogen-fuelled fuel cells, two wheelers and catalytic burners have been developed
and demonstrated.
Thrust Areas
hydrogen energy
Awareness building
MNES also supports projects on utilisation of hydrogen as a fuel for stationary as well as
mobile applications.
Ongoing Projects
There are several research, development and demonstration projects in Hydrogen energy.
Hydrogen is receiving worldwide attention as a clean fuel and energy storage medium for
commercialisation
AB2 alloys
conversion devices
Highlights
Geothermal resources are used to generate power and heat for space heating,
There are more than 300 geothermal spring sites spread throughout the country.
planned to develop the site for power generation. A similar study has been carried
out through NGRI in Puga Geothermal Fields in Ladakh region of Jammu &
Thrust Areas
production of geothermal power plants and equipment for deeper drilling of bore
holes
Highlights
In recent years, vehicle manufacturers have taken interest in this area spurred by
requirements
Thrust areas
reduction, etc
Ongoing Projects
capacitors
capacitors
different cities
5.6 Biofuels
Highlights
In view of the worldwide demand for energy and concern for environmental
safety, there is a need to search alternate fuels to petrol and diesel for their use in
Ethanol, and other biofuels are being increasingly looked at as a potential fuel for
Ethanol and other biofuels when used as a blend with gasoline and diesel enhance
the combustion of the fuel, conserve fuel and improve urban air quality by
Oil bearing seeds from jatropha curcas (for bio-diesel production) plantation in Hissar,
Haryana
Thrust Areas
Manpower development/publicity/awareness/documentation
Highlights
Tides, Ocean Thermal Energy Conversion, Ocean Waves and Ocean currents are
With the present status of technology only tides can be harnessed commercially to
produce power
o The Gulf of Kutch and the Gulf of Khambat (Cambay) in Gujarat on the
western coast
Project Report has been prepared for a 3 MW tidal power project in Sundernbans area of
the Environmental impact of the proposed plant before taking a final view on the project.
Chapter VI
CONCLUSION
Business Opportunities
Indian and foreign investors can contribute to technology development, manufacture and
export of various RE systems and devices. Some of the specific areas include:
Processing and constructing treatment plants for municipal solid waste using
Advanced technologies for treatment of, and energy recovery from, industrial
After-sales service
Managerial expertise
Biomass gasifiers for providing electricity and as prime mover in rural areas
Existing Capabilities
SPV, solar thermal, small hydel, biogas and improved biomass stoves, India is in a
position today to offer 'state-of-the-art' technology to other developing countries and play
a leading role in the global movement towards sustainable energy development. Besides
looking for investment, India can assist other countries in the following areas:
Wind Energy
India has well-established institutional capabilities for providing consultancy services in:
Several Indian organisations have the capability and expertise in various areas of biomass
Solar Photovoltaics
India has a strong manufacturing base for solar cells/modules and systems. It can provide
electrification, water pumping, SPV power plant, refrigeration, training, testing and
Solar Thermal
India, as one of the pioneers in the area of solar thermal technologies, has the competitive
edge in terms of prices when compared to other international players providing renewable
energy equipment and services. Professional services are available in areas of:
Solar Water Heaters: Indian solar thermal collectors (Flat plate type) and selectively
coated absorbers are now of internationally accepted quality. The manufacturing base is
well established. Indian manufacturers can export solar thermal collectors, selectively
coated absorbers and complete solar hot water systems to any country at competitive
price. India can provide assistance in setting up manufacturing facility, consultancy and
Solar cookers: The Indian box-type solar cookers are the best in the world in both
performance and efficiency. There are number of solar cooker manufacturers in the
country. India can provide training, consultancy and technical assistance to other
Biogas
India has a large manufacturing base in biogas related technology. These include:
Gas distribution pipelines, fittings and accessories, including gas valves and
pressure regulators
Dual-fuel engines
India has well-equipped institutions which organise training courses and provide
technical assistance to technicians of other developing countries who can then fabricate
Chapter VII
References
Journals
Ltd.
3. Power line
Websites
www.nic.in
IREDA <ireda.nic.in>
Institutions/Agencies:
NGOs/International Agencies:
<www.pvportal.com>
ANNEXURE- I
The focus of the RE programme in India in the first decade was on direct use of RE
systems, promoted through the use of direct subsidy and decentralised energy use. This
technology centric focus and subsidy driven programme involved dissemination of large
numbers of energy devices, mostly cookstoves and biogas digesters. While this achieved
the desired quantitative results, clearly it was not sustainable. Importantly, it did not help
Based on the lessons learnt, the shift in the RE programme in the 1990s was towards
market development and a much needed and sharper focus on commercialisation. Direct
electricity generation was encouraged, and a new set of fiscal and financial incentives
were promulgated to bring in greater private sector participation. RE also found greater
regulatory and policy support through a slew of incentives from state governments, who
electricity sector. While the experience has been mixed, it can be argued that by and large
these efforts were in support of greater commercialisation of what was clearly a new
sector, and that several important milestones have been achieved, as detailed in the
following pages.
MNES is the nodal ministry for all matters relating to non-conventional and renewable
R&D
Training
International cooperation
MNES has identified thrust areas in which R&D efforts are required. It considers R&D
proposals, which are directly related to these activities or programmes of the Ministry and
hold promise for commercialisation in the near future. MNES has constituted an R&D
Advisory Committee comprising eminent persons in the field of RE, research, industry,
academic institutions, etc, that evaluates and clears R&D projects submitted to the
Institutions of MNES
Administratively, the SNAs are under the control of the respective state governments, but
they receive financial support from MNES for programme implementation. MNES also
There are three organisations under MNES for technology development, testing and
certification of RE systems:
Punjab
MNES has nine regional offices in different state capitals, besides a network of
entrepreneurs. These regional offices monitor, supervise, and create awareness; liaise
with state agencies, NGOs, and project promoters; and provide feedback from the field.
There are nodal agencies of MNES in each state and UT which implement MNES
The Solar Energy Centre (SEC), as a part of MNES, undertakes activities related to
dissemination in the field of solar energy. The Centre has been playing a crucial role in
carrying out support activities, such as testing and demonstration, and building
information and databases for the National Solar Energy Programme. Equipped with
highly advanced and unique facilities, the Centre is recognised as a leading institution in
India and South Asia. Besides testing and standardisation of solar devices, its capabilities
specialized training in repair and maintenance, and technical expertise for actual
installation of systems.
Objectives
and industry
brochures
Achievements
Development of National Standards for testing of solar collectors and box type
solar cookers
Establishment of Solar PV Test Facility for testing of solar cells, PV modules, and
PV pumps etc.)
Development of testing protocols for solar thermal and solar PV devices for
ensuring uniformity in the test results from other authorised test agencies
Integration of existing 50kW solar thermal power plant with a biomass gasifier
system
SEC, Gwalpahari
Material testing
Consultancy
International cooperation
The centre has been working jointly on a number of projects with national institutions
such as the IITs, NPL, Indian Agricultural Research Institute, Tata Energy Research
Institute, etc. It is also collaborating with reputed international institutions such as the
GENEC of France.
In addition to the existing user-oriented services of type testing, certification etc., the
Centre offers a comprehensive set of services to provide full technical assistance to users,
right from the state of initial conceptualisation. This includes the following:
International Cooperation
The Centre is designated as the Secretariat for G-15 project on solar energy applications.
A Pilot Project on Solar Energy Lighting has been implemented in Senegal by India by
providing technology and financial support under this project. India is also participating
The Centre has an MoU with National Renewable Energy Laboratory (NREL), USA for
cooperation in the area of solar energy. As part of this MoU, a technology validation
project is currently under implementation where a test bed facility for thin film PV
modules manufactured in USA has been installed at the Centre to evaluate its
The Centre and GENEC, France has identified hybrid PV Power Plants and battery for
The Centre for Wind Energy Technology (C-WET) has been established as an
o R&D
o Commercial services
million. When commissioned, the Institute would focus on new areas which are
not being taken up by the existing centres such as in biomass energy, energy
recovery from wastes, new technologies, energy needs in rural areas and hybrid
Objectives
devices
and schemes
Sectors
o Hydro Energy
o Wind Power
o Bio Energy
o Solar energy
o Biofuel/Alternate fuel
New initiative
o IREDA has introduced two new windows of financing for wind energy
projects with reduced interest rates for 7 and 8 years repayment period.
o IREDA has been co-opted by IDBI for the operation of the Technology
Special Programmes
handicapped entrepreneurs
Financing Norms)
Instrument Level
Debt Instruments Project /Equipment Financing Schemes
Manufacturing Loans
Quantum of Assistance Up to 75% of project cost or up to 80% of equipment cost
Rate of Interest 5% to 12.50%
Moratorium Up to 3 years
Repayment Period Up to 12 years
New Initiatives
Ministry of Power
Rural Electrification Corp Ltd (REC) under the Ministry of Power, finances rural
electrification schemes in the country, and promotes and finances rural electricity
cooperatives; administers funds and grants from the Government of India and
other sources for financing rural electrification; provides consultancy services and
small, mini and micro generation projects; and develops other energy sources.
bodies.
There is a vast scope for financing small generation projects for exploiting the
available NRSE.
ANNEXURE- II
Part a Policies
Part b Procedures
Part a: Policies
The Prime Minister of India has announced a goal of 10% share for RE or 10,000 MW in
the key aspects, has been formulated by MNES. The broad objectives envisaged in the
policy are:
The policy envisages 10% of additional grid power generation capacity to be from RE by
Policy measures aim at overall development and promotion of RETs and applications.
Policy initiatives encourage private as well as FDI including provision of fiscal and
financial incentives for a wide range of RE programmes. Further, the procedures have
promotion.
Foreign investors can enter into a joint venture with an Indian partner for financial
projects
Proposals for up to 100 per cent foreign equity participation in a joint venture
Hundred per cent foreign investment as equity is permissible with the approval of
appropriate partners
Industrial Policy
MNES is promoting medium, small, mini and micro enterprises for manufacturing
Facilities for promotion of Export Oriented Units (EOUs) are available for the RE
industry
generating companies
those for machinery required for renovation and modernisation of power plants.
Excise duty on a number of capital goods and instruments in the RE sector has
third party sale and buy-back, which have been outlined in the respective
Some states are providing concessions or exemption in state sales tax and octroi.
These rates vary widely from state to state for different technologies and devices
and in periodicity
Fourteen states have so far announced policies for purchase, wheeling and
Small-scale industries (SSIs) are not permitted more than 24 per cent equity in its
SSIs can get registered with the Directorate of Industries or District Industries
SSIs are free to manufacture any item including those notified as exclusively
SSIs are free from locational restrictions, which are mandatory for large industries
technologies/systems
The government also provides various types of fiscal incentives for the RE sector,
which include:
o Direct taxes - 100 per cent depreciation in the first year of the installation
of the project
o Exemption from Central Sales Tax, and customs duty concessions on the
RETs provide one of the best options for first-generation entrepreneurs and small-scale
industries (SSIs) and enterprises. MNES and IREDA have drawn up financial and fiscal
incentives to suit technology of varying sizes and scales for small- and medium-sized
The National Small Industries Corporation (NSIC), under the Ministry of Industry
include financial and marketing services, technical services and training, and
developed countries seek to meet their commitments under the Kyoto Protocol by
environmental sustainability, RETs are considered a highly attractive option since they
The energy sector in India is the largest emitter of GHG emissions in India. Coal is the
countrys largest source of commercial energy. Thermal power plants, steel and cement
industries and railways are the major industrial consumers of coal. The CO2 emission
from coal consumption depend on the quality of coal used. Of the overall CO2 emissions
from fossil fuels, emissions from coal consumption account for almost 65%.
MNES has drafted a Renewable Energy Policy, which seeks to ensure that Renewable
Energy Technologies account for 10% of total power generation capacity in India by
2012.
Part b: Procedures
Highlights
Investment opportunities are available in all the RE areas that have been discussed
in the previous pages of this report, as well as other RE-based systems and
Indian and foreign investors can set up facilities for manufacture of RE systems
and devices based on any of the areas mentioned for their utilisation in India and
houses, can invest in decentralised electrical and thermal plants and systems, and
Build, Own and Operate (BOO) basis. Investors are required to enter into a power
The Reserve Bank of India (RBI) has permitted Indian companies to accept
investment under the automatic route without obtaining prior approval from
RBI. Investors are required to notify the regional office of RBI, of receipt of
inward remittances within 30 days of such receipt and file required documentation
The FIPB has been revamped and made the nodal single window agency for all
investment (other than those eligible for automatic approval by the Reserve Bank
of India)
This Board meets every week and considers all applications within 15 days of
their receipt with the endeavour to communicate decisions to the applicants within
four weeks
The FIIA has been set up in the Ministry of Commerce and Industry to translate
them to expedite approvals and clearances and to sort out operational problems
The FIIA will act as a single-point interface between the investors and
Approval holders have been requested to get in touch with respective officers in
FIIA
Simplified Mechanisms
Under the existing Industrial Policy, a short list of only six industries is kept under
licensing
All applications for which approval is required from the government are to be
filed with SIA and considered by subject specific committees or boards, and
window for entrepreneurial assistance, investor facilitation, and for receiving and
They are also expected to convey the governments decisions on applications filed
It also assists potential investors in finding joint venture partners and provides
Joint Ventures
Joint ventures are the commonly used mode by foreign investors as it provides
A foreign investor can enter into a joint venture not only for manufacturing RE
products and systems, but also in setting up RE-based power generation projects
A foreign investor can enter into a joint venture with an Indian partner who
understands the local environment and can exploit the business opportunities. A
feasibility study of the project should be done before entering into such a venture
joint ventures are in the form of takeovers or strategic alliances with the
facilities and new plant and machinery. For this purpose, an Indian joint
venture company could be formed with up to 100 per cent equity being
CEA Clearances
CEA has prepared guidelines to help private sector generating companies to formulate
CEA.
Environmental Clearances
India, relating to Pollution Control and Environment, for setting up an industrial project.
The fiscal incentives include direct taxes - 100% depreciation in the first year of the
installation of the project, exemption or reduction in excise duty, exemption from central
sales tax, and customs duty concessions on the import of material, components and
MNES has issued guidelines to all state governments for creation of an attractive
environment for evacuation and purchase, wheeling and banking of electrical power from
RE sources.
The fiscal incentives applicable for 2003-2004 are stated under the following subheads:
I. Indirect Taxes
i. Customs Duty
Buy-
Wheeling Banking back Annual
Sl No State Programme TP Sale
2% 12 months Rs 2.25 Escalation 5%
per kWh
9 Maharashtra Wind b b b b 1994-95
Wind b b b 1994-95
Cogen @2% from the year of
b Cogen 7% x ba bb 1994-95
Rs. 3.05/kWh commissioning
2% for old SHP b b b b 1999-2000
WTE 2% 2.6% b b b
projects 1994-95
x
28.4%+Rs0.5/
1 Andhra Pradesh 10 Orissa SHP 2-3% b b At mutually
unit for new x
b not < agreed rate
projects
11 Punjabb Cogen bHTT b x Rs. 3.01 @ 3% 2001-02
b SHP bb not < b b Rs. 2.73 1998-99
SHP 2%,
WTE8-12M bHTT ba bb 1997-98
Rs. 3.01 3% from 2000-01
WTE 2%, 8-12M a b 1997-98
12 Rajasthan SHP b b b Rs. 2.75 1998-99
Wind a Wind a b a b b b x Rs. 2.89 1999-2000
2 Chattisgarh Biomass a Cogena b a bb b x b 1994-95
WTE a WTE a b a b b b x Rs. 3.03 2000-01
Wind
13 4%
Tamil Nadu 6
Windmonths 5% x Rs.
5% 2.60 5 paise
x 2002-03
Rs. 2.70 No escalation
3 Gujarat Biomass 4% Cogenb 2-10%b b 2% b x 1994-95
Rs. 2.73 1995-96
WTE 4% SHPb 5% b xb x 1994-95
Mutually 2001-02
b with agreed rate
4 Himachal Pradesh SHP b x Rs. 2.50 x
addl.charge Rs. 2.70
Wind b WTE b x b b b x 1994-95 1995-96
Cogen
14 U.P.b Windb 12% b bb 0.5%1994-95 b 1995-96
5 Haryana
SHP b Cogenb 12.5%b b 24b x 1994-95 b 1999-2000
WTE b SHPb b b months b b 1994-95 b 1995-96
Wind 20% b 2% on ba 1994-95
WTE a
monthly b b b b 1995-96
Cogen
15 20%
W.B. Windbasis a x 1994-95 x
ab not < b 6M x
b On
Cogen -HTT - - - -
6 Karnataka monthly b
SHP b 6M x x x
16 Uttaranchal SHPbasis b b 2M b Mutually
-
a agreed rate
SHP 2-5% b 2% a 1994-95
SHP: Small Hydro a
WTE b Power, Wind:
b Wind Power, WTE: a Waste1994-95
to Energy, Cogen: Bagasse Cogeneration.
a: allowed; x: not allowed
Rs.
2.80 /
kWh 2000-01 for 5
Wind 5% June-Feb x years
Rs.
Cogen/Biomass b x x 2.50 / b
kWh
7 Kerala
Rs.
SHP 5% June-Feb x 2.80 / 2000-01 for 5
kWh years
WTE 5% June-Feb x 2000-01 for 5
Rs. years
2.80 /
kWh
Wind b x b b x
Cogen b x b b x
8 M.P.
SHP b x b b x
WTE b x b b x
Sl
Item 2003-04 duty rates
No
Spl.
Sl Item Basic Addl
2003-04
Addlduty rates
No CUSTOMS DUTY
(A) WIND ENERGY (Notification No. 21/2002 item No. 224, condition No. Basic
35) Spl.
Addl
modified by Notification No. 26/2003 dated 1.3.2003 Addl
Chapter5%No. 85 Item No.0%
85.024%
Wind operated electricity generators (B) SOLAR PHOTOVOLTAICS
1 up to 30 kW and Battery Chargers up (Notification No. 27/2002 item no. 86, condition 5)
8
to 30 kW The following goods namely: Nil
(A) Silicon
Parts of wind operated electricity in all forms, that is,
polycrystalline
generators for the manufacture of the silicon or ingots, for
the
maintenance of wind operated manufatcure of undiffused
electricity generators, namely:- silicon wafers
(B) Undiffused silicon wafers, for
(a) Special bearings
2
(b) Gearbox the manufacture of solar cells or
(c) Yaw components solar cell modules
(d) Wind turbine controllers and Chapter No. 85 item No. 8541.40
(e) Parts of goods specified at (a) to cells whether or not
9 Photovoltaic 15%
(d) above assembled in modules or made up
Blades for rotor of wind operated into panels 0% 4%
electricity generators, for the A Solar cells
3
manufacture or the maintenance B of PV modules
wind operated electricity generatorsNotification No. 27/2002 item no. 116, condition no. 5 & 13
Parts for the manufacture
11 Silverorpowder
the suspension of chapter 5%
0% 4%
maintenance of the blades for rotor 32 or 71
4
of wind operated13 electricity
Silicone resins and silicone rubbers 5%
generators 0% 4%
of chapter 38
Raw materials for manufacture of Notification no. 25/99 item nos. 7, 18 & 38
5 blades for rotor of wind operated
14 Raw materials for manufacture of 5%
electricity generators 16% 4%
solar cells and modules
8502.31 Wind operated electric
6 Notification
25%no. 26/2003 item no. 4%
Nil 423
generators
15 The following goods namely: 5%
8503.00 Parts of wind electric
7 (1) High purity graphite felt/graphite
25% Nil 4% 0% 4%
generators
pack for growing silicon ingots
Sl
Item 2003-04 duty rates
No
Spl.
Basic Addl
Addl
(C) SOLAR THERMAL
(Notification No. 21/2002 item no. 223)
The following goods namely:
(A) Vacuum tube solar collectors
concentrating solar collectors plastic
collectors or sterling engine for
manufacture of solar energy
16 15% 0% 4%
equipment
(B) Linear actuator for tracking
system, Fresnel lens or sun sensor
for manufacture of concentrating
solar collectors
Notification No. 26/2003 item no. 421
Toughened glass with low iron
RAGHURAM.C.SORAGAVI (MBA IN POWER MANAGEMENT) 105
content and transmissivity of
17 5% 16% 4%
minimum 91% and above for use in
solar thermal collectors or heaters
BUSINESS OPPORTUNITIES FOR RENEWABLE ENERGY IN INDIA
Sl
Item 2003-04 duty rates
No
Spl.
Basic Addl
Addl
(D) POWER GENERATION(Notification No. 21/2002 item no. 237, condition
no. 46)
All goods supplied by a
manufacturer-supplier for the
manufacture and supply of
18 5% 16% 4%
machinery and equipment to a power
generation plant (other than captive
power generation plant)
Notification No. 21/2002 item no. 399
Captive Power Plants of 5 MW or
19 25% 16% 4%
more
Power generation projects
(excluding captive power plants set
20 5% 16% 4%
up by projects engaged in activities
other than in power generation)
21 Other industrial plants or projects 25% 16% 4%
Duty
Black continuously plated solar selective coating sheets (in cut lengths or in coils
Solar cookers
Solar photovoltaic modules and panels for water pumping and other applications
Solar lantern
Parts consumed within the factory of production of such parts for the
Direct Taxes
Under Income Tax Rules following concessions are available to the non-conventional
energy sector:
Section 32
Specified List...)
Section 80 IA
2 Industrial undertakings set up in any part of India for the generation or generation and
distribution of power at any time during the period beginning on the 1st day of April,
1993 and ending on the 31st day of March 2003. Hundred per cent deduction from profits
and gains for first five years and thereafter 30 per cent of the profits and gains. This
benefit can be availed for any 10 consecutive assessment years falling within a period of
15 assessment years beginning with the assessment year in which that industrial
3 The budget for 2001-2002 has proposed a 10-year tax holiday for the core sectors of
infrastructure, including solid waste management systems. This may be availed during
the initial 20 years. Further, the Budget has also proposed a 10-year tax holiday for the
Section 115 J
4 Exemption from MAT to industrial undertakings on profits derived from the business of
Section 80JJA
5. Hundred per cent deduction in respect of profit and gains from business of collecting
Section 10 (23G)
finance in any enterprise wholly engaged in the business of developing, maintaining and
operating any infrastructure facility and which has been approved by the Central
Government on an application made by it in accordance with the rules made in this behalf
For the purpose of this clause among other things, infrastructure facility means a project
for generation or generation and distribution of electricity or any other form of power
Depreciation
Block of Assets
Allowance
Cogeneration systems
a. Back pressure pass out, controlled extraction, extraction-cum-condensing turbines
80%
for cogeneration along with pressure boilers
b. Vapour absorption refrigeration systems
c. Organic rankine cycle power systems
d. Low inlet pressure small steam turbines
Renewable energy devices being
a. Flat plat solar collectors 80%
b. Concentrating and pipe type solar collectors
c. Solar cookers
d. Solar water heaters and systems
e. Air/gas/fluid heating systems
f. Solar crop driers and systems
g. Solar refrigeration, cold storages and air-conditioning systems
h. Solar steels and desalination systems
i. Solar power generating systems
j. Solar pumps based on solar thermal and solar photovoltaic conversion
k. Solar photovoltaic modules and panels for water pumping and other applications
l. Wind mills and any specially designed devices which run on wind mills
m. Any special devices including electric generators and pumps running on wind
energy
n. Biogas plant and biogas engines
o. Electrically-operated vehicles including battery-powered or fuel-cell powered
vehicles
p. Agricultural and municipal waste conversion devices producing energy
q. Equipment for utilising ocean wave and thermal energy
r. Machinery and plant used in the manufacture of any of the above sub-items
Part e: Financial Incentives
MNES provides financial incentives for various RE programmes. These include interest
and capital subsidies. In addition, soft loans are provided through IREDA, a public sector
company of the Ministry and also through some of the nationalised banks and other FIs
Wind Power
Solar Photovoltaics
Solar Thermal
Biogas
New Technologies
Energy Efficiency
Miscellaneous
Miscellaneous Schemes
Min.
Interest Repa
Moratorium Promoters
Category Rate % yment Lending Norms
(max) (yrs) Contribution
pa (max) (yrs)
%
Project Financing
Development of wind farms Up to 70% of total project
11.50 10 1 30
on lease basis cost
Development of wind farms Up to 70% of total project
11.00 10 1 30
on ownership basis cost
Development of wind farms
by machine
suppliers/manufacturers up Up to 70% of total project
11.50 10 1 30
to 10 MW/party/year on cost
built, operate, own, lease,
transfer basis
Development of wind
farms/estates with minimum
station capacity of 10 MW
by co-operative
sector/Public/Joint/Private
sector on built, operate, own, Up to 70% of total project
11.25 10 1 30
lease, transfer basis subject cost
to following conditions:
i. Applicant having minimum
net worth Rs. 100 crores
ii. Applicant having AAA or
equivalent rating.
Development of
demonstration of off-shore
wind farm capacity of 10
MW by co-operative
sector/Public/Joint/Private
sector on built, operate, own, Up to 70% of total project
11.00 10 2 30
lease, transfer basis subject cost
to following conditions:
i. Applicant having minimum
net worth Rs. 100 crores
ii. Applicant having AAA or
equivalent rating.
Equipment Financing
Above 15
500 kW
Below 500 Above 1 MW Above 5 MW & MW &
Schemes Areas up to 1
kW & up to 5 MW up to 15 MW up to 25
MW
MW
Up to Rs. 1.00
Plain Up to Rs. 0.75 lakh Up to Rs. 1.50 lakhs
Survey & lakh
Investigation Up to Rs. 2.00
Hilly Up to Rs. 1.00 lakh Up to Rs. 3.00 lakhs
lakhs
Up to Rs. 1.00
Plain Up to Rs. 0.75 lakh Up to Rs. 1.50 lakhs
Detailed Project lakh
Report Up to Rs. 1.00
Hilly Up to Rs. 0.75 lakh Up to Rs. 2.00 lakhs
lakh
Interest Subsidy Plain 5.00% 2.50% 2.00% 1.50%
for Commercial
Projects Hilly 7.50% 5.00% 3.00% 2.00%
90% cost
90% cost of of the 75% cost of the Equipment cost+
NE Region, the project up project up project up to 25% of civil cost
Nil
Sikkim to Rs. 75000/- to Rs. Rs. 45000/- up to Rs. 22.50
kW 60000/- kW crore/project
kW
Equipment
Capital Subsidy Middle Equipment cost+
Equipment cost+ 50% of cost+ 25% of
for Govt. sector Himalayas, 25% of civil cost
civil cost up to Rs. civil cost up to Nil
projects Ladakh, up to Rs. 15
45,000/kW Rs. 3.00
A&N crore/project
crore/MW
Equipment
Other Areas Equipment cost+
Equipment cost+ 50% of cost+ 25% of
(only 25% of civil cost
civil cost up to Rs. civil cost up to Nil
notified hilly up to Rs. 7.5
30,000/kW Rs. 1.5
regions) crore/project
crore/MW
Renovation & Modernisation Limited to Rs. 10
Up to Rs. 2.0 crores/MW Nil
of old projects crores/project
Development/Upgradation of
water mills
Mechanical Mode Rs. 30,000
Mechanical/Electrical Mode Rs. 60,000
Central Financial Assistance (CFA) in the form of interest subsidy will be provided
Pressure Interest
Bagasse Co-generation
Configuration Subsidy
40 bar & above 3%
Projects by Cooperative / Public / Joint Sector Sugar 60 bar & above 4%
Mills 80 bar & above 5%
100 bar & above 6%
60 bar & above 2%
Projects in IPP mode in Cooperative / Public / Joint
80 bar & above 3%
Sector Sugar Mills
100 bar & above 4%
60 bar & above 1%
Projects by Private Sector Sugar Mills 80 bar & above 2%
100 bar & above 3%
For projects by cooperative / public sector / joint sector sugar mills in the first category,
the floor rate of interest shall not be lower than 6%. For projects under the other two
categories, a floor rate interest of 8% shall apply. The maximum amount of capitalized
interest subsidy to a bagasse cogeneration project shall be limited to Rs. 400 crore.
Central Financial Assistance (CFA) in the form of interest subsidy will be provided
Pressure Interest
Biomass Power
Configuration Subsidy
Direct combustion, cogeneration, including captive power 60 bar & above 2%
projects 80 bar & above 3%
Atmospheric gasification, includingcaptive power projects - 3%
Projects with MW scale 100% Producer Gas Engines Capital subsidy of Rs. 1.00 crore / MW
Advanced biomass gasification projects Capital subsidy of Rs. 1.00 crore / MW An
additional interest subsidy @ 2% will be provided with floor rate of interest not lower
than 6% for Biomass Power / Cogeneration Projects in all Special Category States, and
Islands. The floor rate of interest for other categories of projects shall not be lower than
8%. The maximum amount of capitalized interest subsidy for any biomass power project
shall be limited to Rs. 2.00 crore. A total capacity not exceeding 100 MW shall be
supported in any State during the 10th Plan. The capital subsidy to projects based on MW
scale 100% producer gas engines shall not exceed Rs. 2.00 crore per project, and to
advanced biomass gasification projects shall not exceed Rs. 8.00 crore per project.
(a) Interest Subsidy for Biomass Power Projects (Commercial Projects) (subject to
net rate of Interest, after the interest subsidy, not being less than 11%)
Projects) (subject to net rate of interest, after the interest subsidy, not being less
than 11%)
mill.
PROJECTS
(d) Financial Assistance for the district level Biomass Assessment Studies under the
Programme
Promoter's
Interest Rate (% Repayment Moratorium Lending
Category Contribution
pa) (yrs) (max) (yrs) Norms
(%)
Project Financing
(a) Small scale cogeneration (except sugar industry) up to 7.5 MW installed capacity with
1. 63 kg/m2 Up to 70% of total
12.50 10 3 30
Pressure project cost
2. 87 kg/m2 Up to 70% of total
12.25 10 3 30
pressure project cost
3. 100 kg/m2 Up to 70% of total
11.75 10 3 30
pressure project cost
(b) Above 7.5 MW installed capacity with
4. 63 kg/m2 Up to 70% of total
12.00 10 3 30
Pressure project cost
5. 87 kg/m2 Up to 70% of total
11.75 10 3 30
pressure project cost
6. 100 kg/m2 Up to 70% of total
11.50 10 3 30
pressure project cost
Promoter's
Interest Rate (% Repayment Moratorium Lending
Category Contribution
pa) (yrs) (max) (yrs) Norms
(%)
Project Financing
(1 MW to 7.5 MW)
1. 63 kg/m2 Up to 70% of total
12.00 10 3 30
Pressure project cost
2. 87 kg/m2 Up to 70% of total
11.75 10 3 30
pressure project cost
3. 100 kg/m2 Up to 70% of total
11.25 10 3 30
pressure project cost
MNES Financial Incentives for Energy from Urban, Municipal and Industrial
Wastes
Sl
Programme/Scheme Amount of Subsidy
No
For reducing rate of interest to 6.0%
(4% in case of projects taken up by
Municipal Corporation/Urban Local
Bodies) subject to a maximum of Rs 2
1 Interest Subsidy
crore/MW for waste-to-power
project, Rs 1 crore/MW for fuel-to-
power project and Rs 0.50 crore/MW
for waste-to-fuel project
Financial support for the preparation of
50% of the cost, subject to a maximum
2 DPR/Techno-economic Feasibility Report
of Rs 2 lakh
(TEFR)
Incentive to Municipal Corporation/ Rs 15 lakh per MW
3 Urban Local Bodies for site Rs. 7.5 lakh per MW if the project is
clearance/facilitation/coordinated actions for waste to fuel or fuel to power
Rs 5 lakh per MW
Incentive to SNAs for their coordinated
4 Rs. 2.5 lakh per MW if the project is
actions/monitoring, etc
for waste to fuel or fuel to power
Financial Support for Demonstration
5 Under review
Projects
IREDA Financial Assistance for Waste to Energy
Interest
Repayment Moratorium Promoter's Lending
Category Rate (%
(yrs) (max) (yrs) Contribution (%) Norms
pa)
Project Financing
Up to 70% of
Recovery of energy
12.25 10 3 30 total project
from Industrial Waste
cost
Recovery of energy
from Urban and
Up to 70% of
Municipal Waste 11.00 10 3 30
total project
(i) up to 3 MW 11.50 10 3 30
cost
(ii) above 3 MW & up
to 6 MW
IREDA Financial Assistance for Grid Inter-connection facility for eligible utilities
Interest Promoter's
Repayment Moratorium Lending
Category Rate (% Contribution
(yrs) (max) (yrs) Norms
pa) (%)
Grid Inter- 100% of
connection eligible
facility for equipment cost
eligible utilities 12.50 10 1 30 limited to a
for Renewable maximum of
Energy Power 70% of total
Evacuation project cost
Interest Promoter's
Repayment Moratorium Lending
Category Rate Contribution
(yrs) (max) (yrs) Norms
(% pa) (%)
100% of
eligible
equipment
cost
Transmission/Distribution
limited to
facility for eligible
12.50 10 1 30 a
utilities for Renewable
maximum
Energy Power Evacuation
of 70% of
total
project
cost
IREDA Financial Assistance for Alternate Fuel
Interest Promoter's
Repayment Moratorium Lending
Category Rate (% Contribution
(yrs) (max) (yrs) Norms
pa) (%)
Biofuel (Ethanol
Up to 70%
production through
of total
Biomass/Sugar 11.00 8 2 30
project
juice/Molasses and
cost
Biodiesel production)
Interest Promoter's
Repayment Moratorium Lending
Category Rate (% Contribution
(yrs) (max) (yrs) Norms
pa) (%)
Up to 70% of
Fuel Cells 11.00 8 2 30 total project
cost
Interest
Repayment
Sl Extent of Rate (Excl.)
Category
No Finance (%) Interest Tax Period
(%) (Yrs )
Housing (Other than EWS, LIG &
APS)
utility and social infrastructure, 13.50 10
1 80
waste management, land acquisition, 13.75 15
Line of Credit, commercial, building
material
Interest Promoter's
Repayment Moratorium Lending
Category Rate (% Contribution
(yrs) (max) (yrs) Norms
pa) (%)
Manufacturing Equipment
Up to 80% of
Solar PV modules &
12.50 6 1 20 total project
systems
cost
Production of SPV Up to 80% of
Cells & silicon 12.50 6 1 20 total project
ingots/wafers for SPV cost
Funding SPV under Market Development Programme
Systems of all
categories except Up to 80% of
pumping 12.50 6 1 20 total project
All cost
applications
RAGHURAM.C.SORAGAVI (MBA IN POWER MANAGEMENT)
Up to 80% of 122
SystemsWind-SPV
12.00 10 1 20 total project
Hybrid System
cost
BUSINESS OPPORTUNITIES FOR RENEWABLE ENERGY IN INDIA
Sl
Programme/Scheme Amount of Subsidy
No
- 2/3rd of the project cost
subject to a maximum of Rs
Solar Photovoltaic Grid-connected Power Projects:
1.2 crore per 100 kW
Solar Photovoltaic Grid-connected Power Projects for niche
- Up to Rs 1 lakh for
applications, namely, voltage support systems at the tail-end of the grid
1 preparation of DPR
in rural areas and rooftop peak-shaving systems in Urban Centres.
- 2.5 % of MNES share
Projects to be implemented by SEBs, SNAs and Private Electric
subject to maximum of Rs 5
Utilities only.
lakh for O&M, data
compilation, etc
MNES Financial Incentives for Solar Photovoltaic Systems (2 years AMC)
systems to certain eligible categories of users. Under the PV water pumping programme a
(A) For General Areas (excluding all special category States and Islands)
Sl
SPV System Central Subsidy
No
Solar Home System 50% of ex-works cost, subject to a maximum of
Model 1 (18 W module, 1
light) Rs. 2,400/-
Model 2 (37 W module, 2
lights) Rs. 4,550/-
1 Model 3 (37 W module, 1
light, 1 fan) Rs. 4,550/-
Model 4 (74 W module, 2
lights, 1 fan) Rs. 8,440/-
Model 5 (74 W module, 4
lights) Rs. 8,440/-
2 Street Lighting System Rs 9,100/-
Power Plants and other
3 Rs. 1,19,000/kWp of PV array capacity
Community Systems
(i) Rs. 100 / W of PV array used, subject to a maximum of Rs. 2
lakh/system when no soft loan is availed
4 PV Water pumping system
(ii) Rs. 75 / W of the PVarray subject to a maximum of Rs. 2
lakh/system
(B) For special category States and Islands
Sl
SPV System Central Subsidy
No
Solar Home System 90% of ex-works cost, subject to a maximum of
Model 1 (18 W module, 1
light) Rs. 4,300/-
Model 2 (37 W module, 2
lights) Rs. 8,200/-
1 Model 3 (37 W module, 1
light, 1 fan) Rs. 8,200/-
Model 4 (74 W module, 2
lights, 1 fan) Rs. 15,190/-
Model 5 (74 W module, 4
lights) Rs. 15,190/-
2 Street Lighting System Rs 16,390/-
Power Plants and other
3 Rs. 2,14,200/kWp of PV array capacity
Community Systems
Rs. 135/W of the PV array of the system (subject to a maximum of
4 PV Water pumping system
90% of approved ex-works cost)
Eligible categories of Beneficiaries for Central Subsidy
The interest subsidy scheme is aimed at expanding the commercial market for SPV
products in the country, so that the capital subsidies can be gradually phased out. The
scheme will offer soft loans for the purchase of Solar Photovoltaic (SPV) systems and
power plants. The scheme will be implemented through IREDA and banks for which
MoUs will be signed between MNES and IREDA and banks. Only those SPV systems
and power plants, which conform to the MNES specifications will be eligible for supply
The main features of the scheme are shown in the table below:
S.
Feature Implementation through IREDA Implementation through Banks
No.
Individuals and organizations
Eligible All categories of users including
which do not claim any
1. categories of intermediaries and commercial
depreciation benefit on the
beneficiaries organizations
investment
7% (commercial borrowers who can
claim depreciation benefits) 5%
(individuals and other organizations)
Financial intermediaries who borrow
funds from IREDA for on-lending at
Rate of 5% or 7% rate of interest will be
2. 5%
Interest charged an interest rate of 2.5% or
4.5% respectively by IREDA. Such
intermediaries will not be able to claim
depreciation benefit and the on-lending
arrangement will not be treated as a
lease arrangement.
3. Loan Period 5 years 5 years
4. Moratorium 1 year No Moratorium
Amount of
5. 80% of the cost of the project 85% of the cost of the systems
loan
Upper limits
6. No Limit Rs. 5 lakhs
for a loan
Service
7. 1% of the loan disbursed Rs. 300 per loan disbursed
Charge
All types of SPV systems except
solar pumps are covered under this
scheme. Loans will not be
provided at subsidized rates for
All types of SPV systems except solar
systems that are available with
pumps are covered under this scheme.
capital subsidy, with the exception
Loans will not be provided at
of solar generators for which both
Systems subsidized rates for systems that are
8. subsidies and soft loans will be
covered available with capital subsidy, with the
available during 2002-03.
exception of solar generators for which
For solar home systems installed
both subsidies and soft loans will be
as part of the MNES programme
available during 2002-03
for electrification of remote
villages, banks may provide soft
loans for the unsubsidized
portionof the cost of the systems.
The amount of loan will be up to 85% of the cost of solar lantern. The
Loans for interest rate for individual users will be 5% p.a. in general areas and 3% in
9. Solar the North-Eastern Region. Banks will be available for a service charge of
Lanterns Rs. 100 per loan for solar lanterns. The service charge for IREDA will be
1% of the loan amount disbursed.
Users of PV water pumping systems and intermediaries are eligible to avail a soft loan at
the rate of 5% / 2.5% per annum respectively for 90 % of the remaining unsubsidised part
of the price of the SPV water pumping system. The loan can be repaid in maximum of 10
years in installments, beginning at the end of the first year after sanction of loan.
Implemented by the Rajasthan State Power Corporation Ltd. (RSPCL), the Indian
Facility (GEF) will provide a grant of $49 million, including technical assistance of $4
million, while the Government of Germany, through KfW, will provide a composite loan
of 250 million DM. The Government of Rajasthan will provide equity of Rs 50 crore, and
a loan of Rs 200 crore, if required. A consultant for preparing the Request for
Qualification (RfQ) and Request for Proposal (RfP) has been finalised.
Sl
Programme/Scheme Amount of Subsidy
No
Rs 4,000 per sq. m of
Demonstration Programme on Solar Water Heating Systems - For NE installed collector area
1
states, islands, J&K and Sikkim (Special Demonstration Programme) (Rs. 6,000 per sq. m for
States of NE and Sikkim)
Financial assistance:
Rs 3-5 lakh non-
recurring
Rs 0.50 lakh
2 Aditya Solar Shops recurring for two
years
Rs 1 lakh for
publicity
Interest Subsidy
Rate of
Technology Implementing Organisation Category of End-user
Interest
Individual, institution,
5%* (to
Solar water heating system Banks/HUDCO, etc association, small
end-user)
business establishment
IREDA (through financial
intermediaries). IREDA provides Individual, institution,
5%* (to
Solar water heating system loans to financial intermediaries association, small
end-user)
@ 2.5% rate business establishment
of interest
Solar water heating system (any Institutions, trusts,
capacity), solar air heating IREDA (direct or through charitable organisations,
5% *
system, solar desalination financial intermediaries)** etc (non-profit
system, solar swimming pool organisations)
Solar water heating system (any Industry, hotels and other
capacity), solar air heating IREDA (direct or through commercial
7%
system, solar desalination financial intermediaries)** organisations (profit-
system, solar swimming pool making)
** The financial intermediaries may charge a spread up to 4% over the rate charged
Interest Promoter's
Repayment Moratorium Lending
Category Rate (% Contribution
(yrs) (max) (yrs) Norms
pa) (%)
Manufacturing of Equipment
Up to 70% of
Manufacturers of
13.50 6 1 20 total project
equipment
cost
Equipment Financing
Up to 80% of
Non-profit-making
12.50 6 1 20 total project
Institutional Users
cost
Up to 80% of
Profit-making
12.50 6 1 20 total project
Institutional Users
cost
Up to 80% of
Domestic
12.50 6 1 20 total project
Intermediaries
cost
Other than
Domestic- Up to 80% of
Non-Profit making 12.50 6 1 20 total project
and claiming 100% cost
depreciation
A solar water heater consists of a collector to collect solar energy and an insulated storage
tank to store hot water. Based on the collector system, solar water heaters can be of two
types:
glass sheet. Inside there are blackened metallic absorbe (selectively coated) sheets with
built in channels or riser tubes to carry water. The absorber absorbs the solar radiation
Solar water heaters based on Evacuated Tube Collectors (ETC based SWH)
Solar water heating is now a mature technology. Wide spread utilization of solar water
heaters can reduce a significant portion of the conventional energy being used for heating
Inetrnationally the market for solar water heaters has expanded significantly during the
last decade. It is estimated that around 40 million sq. m. of collector area has so far been
installed world wide for heating water. In the country, the collector area so far installed
Salient Features
Hot water at 60-80 C for hotels, hospitals, restaurants, dairies, homes, industry
etc.
Solar water heaters (SWHs) of 100-300 litres capacity are suited for domestic
application.
hospitals etc.
Fuel Savings:
A 100 litres capacity SWH can replace an electric geyser for residential use and saves
The use of 1000 SWHs of 100 litres capacity each can contribute to a peak load saving of
1 MW.
Environmental benefits
A SWH of 100 litres capacity can prevent emission of 1.5 tonnes of carbon-dioxide per
year.
Approximate cost:
Payback period:
Though the initial investment for a solar water heater is high compared to available
conventional activities, the return on investment has become increasingly attractive with
the increase in prices of conventional energy. The pay back period depends on the site of
installation, utilization pattern and fuel replaced. To offset the high initial investment for
solar water heaters, the Ministry is currently implementing a soft loan programme
through seven designated banks and Indian Renewable Energy Development Agency
(IREDA).
Under the Interest Subsidy Scheme of the Ministry, soft loans are provided by the
Solar water heaters based on Flat plate Collectors (FPC based SWH)
Solar water heaters based on Evacuated Tube Collectors (ETC based SWH)
Any individual, institution, association, small business establishment is eligible for this
loan upto 85% of the cost of the system at an interest rate of 5% per annum repayable in
5 years. End-users (other than individuals) will, however, have to give an undertaking
that no depreciation allowance will be claimed under income tax rules. Hotels will not be
Solar water heaters of capacity up to a maximum of 5000 litres are eligible for soft loans
from banks.
The housing cooperatives societies and the developers of real estates are eligible for soft
loans for installing solar water heaters in bulk at an interest rate of 5% since the systems
are ultimately being used by individuals. However, the borrowers will have to give an
An additional amount of Rs.300 will also be made available by MNES to the banks as
promotional incentive / business development charge for each loan disbursed irrespective
of the size of the system. As soon as a loan is disbursed, an amount of Rs.300 can be
debited by the bank to the MNES interest subsidy account. The funds so collected /
accumulated can be used for the' following purposes and in the following manner by the
bank:
In order to keep the interest of the motivators/agents alive, it is advisable that the
commission to the motivators/agents be paid at the branch level itself and a debit
sq. m approx.)
4 nos. collector system (8
400 litres Rs. 65,000
sq. m approx.)
5 nos. collector system (10
500 litres Rs. 80,000
sq. m approx.)
6 nos. collector system
and up to 20 nos. collector 600 litres to 2000 litres Rs. 14,500 for each collector
system
i.e. for 10 nos. collector
1000 litres Rs. 1,45,000
system (20 sq. m approx.)
For 15 nos. collector
1500 litres Rs. 2,17,500
system (30 sq. m approx.)
For 20 nos. collector
2000 litres Rs. 2,90,000
system (40 sq. m approx.)
For 21 nos. collector
system and onwards up to 2100 litres to 5000 litres Rs. 12,000 for each collector
50 nos. collector system
Suppliers will be responsible for maintenance of the systems
Maintenance guarantee for 5 years and it will form part of unit cost to be financed by
the banks as per above guidelines
The cost indicated above includes the cost of collector, insulated hot water storage tank, system pipings,
instrumentation, controls etc. The cost also includes maintenance responsibility of the systems by the
manufacturers for five years. The bank will provide 85% of the cost of the system as soft loan.
Solar Water Heaters based on Evacuated Tube Collectors (ETC based SWH)
Eligible Suppliers Suppliers of solar water heaters based on ETCs approved by MNES
System Capacity No. of Storage tank Upper limit of cost of the solar water heating
(notional) Tubes capacity system (Rs.) (for calculating loan amount)
50 litres 7 7 x 1350 = Rs. 9500
75 litres 11 70-80 11 x 1318 = Rs. 14500
100 litres 14 100 14 x 1286 = Rs. 18000
200 litres 28 150-175 28 x 1250 = Rs. 35000
250 litres 34 200-220 34 x 1250 = Rs. 42500
300 litres 40 230-260 40 x 1250 = Rs. 50000
400 litres 52 340-370 52 x 1250 = Rs. 65000
500 litres 64 400-425 64 x 1250 = Rs. 80000
From 600 litres to 2000 litres, 12 tubes per 100 litres. Cost Rs. 1207 for each tube; total cost rounded
off as follows:
600 litres 72 72 x 1207 = Rs. 87000
1000 litres 120 120 x 1207 = Rs. 145000
1500 litres 180 180 x 1207 = Rs. 217500
2000 litres 240 240 x 1207 = Rs. 290000
From 2000 litres to 5000 litres, 12 tubes per 100 litres. Cost Rs. 1000 for each tube
3000 litres 360 360 x 1000 = Rs. 360000
4000 litres 480 480 x 1000 = Rs. 480000
5000 litres 600 600 x 1000 = Rs. 600000
Maintenance Suppliers will be responsible for maintenance of the systems for 5 years and it
guarantee will form part of unit cost to be financed by the banks as per above guidelines.
The cost indicated above includes the cost of collector tubes, back reflector, double jacketed stainless
steel tank with PUF insulation of minimum 50 mm thichkness, collector stand made of mild steel
(powder/plastic coated). The systems may consist of tubes, the number of which may be different than
what has been indicated above. For the pupose of loan, the cost of such a system may be determined
based on the cost of each tube in the same capacity range. For example, the indicative cost of a system
with 12 tubes will be: 12 x Rs. 1318 = Rs. 15800 (approximately). The capacity of the system indicated
is notional since the amount of hot water likely to be delivered depends on the solar radiation
availability which varies from location to location. The cost also includes maintenance responsibility of
the systems by the manufacturers for 5 years. The bank will provide 85% of the cost of the system as
soft loan.
SOLAR COOKERS
A. Promotional Scheme
i) Incentive to State Nodal Agencies (SNAs) and associated promoters for promotional
Reimbursement of BIS fee (including application and marking fee and test charges),
directly by MNES on 100% basis during 1st year and on 50% basis during further years
copies of necessary bills/receipts issued by BIS. The BIS standards for Box Solar
* This amount of support will be available during next financial year also where after it
will be reduced for remaining years of 10th Plan. For solar steam cooking systems the
support is also made available if they are used for other applications also like drying,
iii) Grant for inauguration : Up to Rs. 35,000/- (to be considered on merit basis)
Rented shops run by Government Agencies are supported only if agencies agree to bear
the rent on a long term basis, after the initial support of MNES.
- Rs. 50,000/- per Aditya shop and Rs. 20,000 per solar counter, as a one-
time grant for meeting the expenditure on furnishings and fittings, sign
boards etc.
MNES Financial Incentives for Wind Pumps and Wind Battery Chargers/Wind-
Sl
Programme/Scheme Amount of Subsidy
No
Rs 20,000-45,000 per wind mill depending on its
1 Wind Pumps
design
75% of ex-works cost subject to a maximum of Rs
2 lakh per kW for community applications, direct
Wind Battery use by Central/state government, Defence, etc
2 Chargers/wind/solar hybrid
systems 50% of ex-works cost subject to a maximum of Rs
1.25 lakh per kW for individuals, academic
institutions and industrial use
3.1 Biogas
Amount of
Category Central Subsidy Central
per plant Subsidy
Northeastern region states and Sikkim, except plain areas of Assam Rs. 11,700/-
Plain areas of Assam Rs. 9,000/-
Jammu & Kashmir, Himachal Pradesh, Uttaranchal (excluding terai region),
Niligiris of Tamil Nadu, Sadar Kursoong and Kalimpong sub-divisions of the Rs. 3,500/-
Darjeeling distt (WB), Sunderbans, Andaman and Nicobar Islands
Scheduled Caste, Scheduled(MBA
RAGHURAM.C.SORAGAVI Tribe,IN
desert
POWERdistricts, small and marginal
MANAGEMENT)
farmers, landless labourers, terai region of Uttaranchal, Western Ghats and Rs. 2,300/-
139
other notified hilly areas
All Others Rs. 1,800/-
BUSINESS OPPORTUNITIES FOR RENEWABLE ENERGY IN INDIA
Turn-key job fee linked with three years free maintenance warranty:
A sum of Rs 800 per plant is given in northeastern region states (excluding plain areas of
Assam), Sikkim, Jammu & Kashmir, Himachal Pradesh and hilly districts of Uttar
Pradesh, Andaman & Nicobar Islands and Lakshadweep, whereas Rs 700 per plant is
Financial support limited to 50% of the rate of Central subsidy, as applicable for different
categories of beneficiaries and areas, is admissible for repair and revival of family type
biogas plants, which are at least five years old and which are in disuse at present for want
of structural repairs.
Target Range
Amount of Service Charges
(Nos.)
100-3,000 plants Rs 0.50 lakh + Rs 300 per plant in excess of 200 plants
3,001-7,000
Rs 8.90 lakh + Rs 150 per plant in excess of 3,000 biogas plants
plants
Above 7,001 Rs 14.90 lakh + Rs 100 per plant in excess of 7,000 plants subject to
plants a maximum of Rs 30 lakh
Northeastern region states, Jammu & Kashmir and Sikkim are given grant for specific
Financial support for preparation of DPR: Rs. 1.00 lakh per site for projects up to 250
Amount of Central
Type of Chulha
Subsidy per chulha
Durable fixed type chulhas with chimneys
(i) N.E. Region states and Sikkim Rs 270/-
(ii) Other states Rs 80 /-
Portable Chulha
(i) N.E. Region states & Sikkim Rs. 135/-
(ii) Islands and notified hilly and desert areas Rs. 75/-
(iii) SC/ST beneficiary in other States/UTs Rs. 50/-
High altitude chulha
(i) N.E. Region states & Sikkim Rs. 450/-
(ii) Jammu & Kashmir, Uttaranchal, Himachal Pradesh
Rs. 450/-
and Hilly Districts of West Bengal
Hilly Districts of West Bengal Maximum up to Rs. 250/-
Two/three pot fixed chulha with chimney and community chulha - Rs 40 per chulha
Dealership support for fair price shops, and cooperative stores and private
given to the states and agencies having an annual target of up to 15,000 improved
chulhas. The other states and agencies which have an annual target of more than
15,000 chulhas are entitled to receive funds @ Rs 2 per chulha, with an upper
Training support: @Rs 16,000 per SEW Course; Rs 10,000 per Trainers Training
Users Course
Sl
Programme/Scheme Amount of Subsidy
No
50% of the price of BOPV excluding
Battery-operated Passenger Vehicles
1 excise duty, sales tax and all other
(BOPVs): 10 seaters and bigger capacity
levies.
Subsidy and Incentives:
The amount of subsidy will be fixed at the rate of Rs 125 per peak Watt subject to
proof of the supply and installation of system. Further 100% depreciation is available in
Interest Moratorium
Repayment Promoters Lending
Category Rate (%
(yrs) Contribution (%) Norms
pa) (max) (yrs)
Project Financing
Up to
70% of
Commercial and Industrial sector 11.50 10 2 30 total
project
cost
Up to
70% of
Domestic sector 11.00 5 1 30 total
project
cost
Up to
70% of
Agricultural sector 11.00 10 2 30 total
project
cost
Energy Efficiency/Conservation Systems and Equipments (including DSM)
Equipment Financing
Up to
75% of
Commercial and Industrial Sector 12.00 10 2 25 total
project
cost
Up to
75% of
Domestic sector 11.50 5 1 25 total
project
cost
Up to
75% of
Agricultural sector 11.50 10 2 25 total
project
cost
Manufatcuring of Equipments/Facilities
Up to
70% of
All Energy Efficiency/Conservation
12.50 8 2 30 total
systems and Equipment
project
cost
6.0 Miscellaneous