ANNOUNCEMENT 12 Dec 2014

The Indian Ministry of New and Renewable Energy (MNRE) has announced a scheme for development of solar parks of at least 500 MW capacity under the "Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects". The Scheme announced until 2018-19, and later extended until 2019-20, targets developing solar projects totalling a capacity of 40,000 MW with a financial support from the Central government totalling INR 8,100 crore (~USD 1,240 million).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 12 Dec 2014 | Removal date: 31 Mar 2019
Still in force

Financial grant

The "Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects" targets to set up at least 25 solar parks of a capacity of 500 MW and above each totalling to a target of 20,000 MW. These targets under the Scheme are for the years 2014-15 to 2018-19 with an estimated Central Financial Assistance (CFA) of INR 4,050 crore (~USD 630 million)*. The solar projects are independent of the choice of solar technology to be used. Further, no restrictions have been placed on the sourcing of raw materials in terms of local content requirements as seen in previous measures pertaining to solar projects. 

A CFA of INR 2.5 million (~USD 39,000)* will be granted for individual projects initially for a Detailed Project Report (DPR). For the project development, CFA of up to INR 2 million (~USD 31,000)* per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, will be granted. 

On 21 March 2017, the Ministry of New and Renewable Energy enhanced the targets under the Scheme from 20,000 MW to 40,000 MW with a total CFA of INR 8,100 crore (~USD 1,239 million)**. The Scheme now targets setting up of at least 50 solar parks with a capacity of at least 500 MW each by 2019-20.

 

* INR to USD approximate conversions as on 12 December 2014 @ INR 64.38/USD

** INR to USD approximate conversions as on 21 March 2017 @ INR 65.37/USD

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