MNRE sanctions 50MW each of Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops in the country during the 12th Plan period at an estimated cost of Rs. 975 crores and with Central Financial Assistance (CFA) of Rs. 228 crores

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No. 32/8/2014-15/GSP Government of India

Ministry  of New & Renewable Energy

(Grid Solar Power Division)

Block-14, C.G.O. Complex,

To

The Pay & Accounts Officer,

Ministry of New & Renewable Energy

New Delhi – 110003.

Lodhi Road, New Delhi – 110001.

Dated : 5th December, 2014

Sub :        Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops

Sir,

I am directed to convey the sanction of President for implementation of a Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops in the country during the 12th Plan period at an estimated cost of Rs. 975 crores and with Central Financial Assistance (CFA) of Rs. 228 crores, as per the provisions of the guidelines enclosed at Annexure-I. The main objective, implementation arrangements, etc. are given in the succeeding paragraphs.

2. Objective

The objective of this scheme is to achieve gainful utilization of the unutilized area on top of Canals and also the vacant Government land along the banks of Canals wherever available, for setting up Solar PV power generation plants for feeding the generated power to Grid and to set up a total capacity of 100 MW solar PV power projects to achieve targets set under National Solar Mission (NSM) announced by the Government of India.

3. Implementation Arrangements

3.1 Applicability:  All the States and Union Territories having Canal network will be eligible for benefits under the scheme. However, the Scheme may be availed by only those States which have either fulfilled their Solar RPOs or commit to do so within a given time frame.

3.2 Eligibility: State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organisations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation. Proposals from States in Project mode will also be acceptable on completion during 2014-15 or later.

3.3 Implementation agency:  The solar PV power plants will be developed by the State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organizations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation.

3.4 Scheme  Manager: The Scheme manager on behalf of MNRE would be Solar Energy Corporation of India (SECI) under the MNRE.   SECI will handle funds to be made available under the scheme on behalf of GOI, for which they will be provided service charge of 1% of the funds handled/ routed through them.

3.5 Mode  of Operation of Scheme:  The solar PV power plants will be developed by the State Power Generation Companies/ State Government Utilities/ any other State Government Organization/ PSUs/ GoI PSUs or GoI organizations, provided that they are operating in power sector or own canal systems, i.e. are into irrigation. The Scheme manager on behalf of MNRE would be Solar Energy Corporation of India (SECI) under the MNRE.    The Implementing Agency will submit the application / proposal for setting up Grid-connected Solar PV Power Plants on Canal Banks/ Canal Tops to MNRE. MNRE/SECI will analyze/ scrutinize the application/ proposal and if found appropriate, MNRE will sanction the project, including the ones in project mode made during 2014-15. Thereafter, SECI shall release the capital subsidy of upto Rs. 3cr./MW for Canal Top SPV projects and Rs. 1.5cr/MW for Canal Bank SPV Projects.

4. Central Financial Assistance

• Rs.3 crore/MW or 30% of the project cost, whichever is lower, for Canal Top SPV projects and Rs. 1.5 crore MW or 30% of the project cost, whichever  is lower, for Canal Bank SPV projects.

• CFA of upto Rs.225 crore  for 100 MW (SO MW on Canal Tops and SO MW on Canal Banks) to be disbursed over a period of maximum 2 years post sanctioning of the plants as under:

– upto 40% on sanctioning of the projects.

– 60% on successful  commissioning of the projects.

• Service charge to SECI @1%: Rs.2.25 crore.

There could be some intermediate installments in case full 40% is not released as advance