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COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS
Sl..
No
Name of State Bihar Chhattisgarh Gujarat Haryana
Description (-From RE policy of State) (From RE policy of State) (From RE policy of State)
1 Order Date Notification No. 38 dated April
8, 2002
Solar Power Policy – 2009
G.R.No.SLR-11-2008-2176-B,
dated 6th
January, 2009 and
modification vide G.R.No.SLR-11-
2010/170022/B dated 22
nd
June,
2010
GoH, Renewable Energy Deptt. Dated
23-11-2005
2 Eligible
Producer
Any Industry, Institution, Private
Agency, Partnership Firm,
Consortia, Panchayat, Co-
Operative Or Registered Society
• Every unit, organisation or
Private agency setting up of RE
projects .
• Parties may set-up units either
themselves or as a joint venture
• Any company or body corporate
or association of body of
individuals, whether
incorporated or not, or artificial
juridical person,
• Minimum project capacity of a
Solar Power Generators(SPG),
in case of solar Photovoltaic
(SPV) and Solar Thermal (ST)
to be 5 MW each
• A maximum 500 MW SPG
allowed for installation
Companies, Cooperatives, Partnerships,
Local Self Governments, State Nodal
Agency, Boards & Corporations, Power
utilities, Private developers, Public –
Private Partnership Companies,
Consortia, Registered Societies, NGOs,
individuals etc.
3 Land Allotment Government land, if available on
lease, otherwise private
purchase.
• Govt. land, if available, on
lease,
• Private land to be acquired by
the Govt. and made available to
the party at acquisition cost.
State Govt. to acquire land if necessary
at the cost of IPP.
4 Operative
Period
5 Years with immediate effect Up to 31.3.2014. Date of notification till a new policy is
notified
5 Sale of Power
and
Tariff
State grid/ BSEB/third party/HT
Consumer of BSEB/Pvt.
Consumer
• Parties may use the power
themselves or sell it to a third
party after permission from
GoC, CSEB.
• CSEB to purchase at rate of
Rs. 2.25 per unit.
• For third party, the rates to be
settled mutually .
• Open Access for Third part
sale
• Cross subsidy exempted in
case of third party sale and
surplus energy over captive use
to be considered as sale @85%
of the tariff determined by the
commission
• Energy to be sold to
Distribution licensees in the
• To Licensee/ Utilities at HERC tariff
(for new projects after this Policy)
• Surplus power from captive power to
utilities at negotiated price. (for old
projects)
100 
 
State at tariff( as detailed in
Policy) for SPV & ST for 25
years
6 Wheeling On BSEB transmission and
distribution system as per agreed
terms with Developer
On CSEB's transmission /
distribution system
• Allowed on payment of
transmission charges and
losses applicable to normal
open access consumer with in
the state (at 66kV and above).
• For wheeling (below 66kV)
transmission and wheeling
losses @ 10% of the energy
fed to the Grid
• For wheeling to more than one
location, generator to pay
5paisa/unit on the energy fed to
the grid
On Licensee / Utilities Grid for captive
use or for Third Party sale within the
State as per approved HERC tariff.
7 Banking • Allowed for one year free of cost.
• If the banked energy is not utilized
within twelve months, no charges
shall be paid
In lieu of such power.
8 Power
Evacuation
and Grid
Interfacing
Developer to bear cost for
evacuation of power to the nearest
State/BSEB gird/sub-station.
• Developer to bear cost for
evacuation of Power from plant
to nearest grid sub-station
• Lines/equipments to be
maintained by CSEB at
Developer’s cost.
• Power by the SPG to be
injected at 66 kV.
• Evacuation facility from the
Solar substation/switch yard to
GETCO substation to be
approved & laid by GETCO
• Cost of power evacuation up to
HVPN/UHBVN, DHBVN network to be
borne by the Developer.
9 Incentives
and
General
Incentives/concessions
as applicable to new Industrial
units/backward areas.
• Incentives / concessions
as applicable to new Industrial
units
• Reactive charges to be paid to
CSEB for taking reactive power
from them.
• Electricity sold to third party or
for self use exempted from
electricity duty for 5 years
• CDM benefit to developers in
first year, 10% to beneficiaries
in 2
nd
year to be increased by
10% every year upto 50% and
then shared equally between
developer and beneficiary
• SPGs installed and
commissioned during this
period to be eligible for the
incentives, for a period of 25
years from the date of
commissioning
All new projects to be treated as
“Industry” in terms of Industrial Policy ,
2005 and all the incentives available to
new projects to be applicable as per this
Policy.
101 
 
• Benefits of this policy will not
be available to the projects set
up under MNRE incentive
scheme for SPG
• Any subsidy/ incentive received
by SPG developers from any
source to be reduced from tariff
rate except accelerated
depreciation under I T Act
• Exemption from demand cut up
to 50% of the installed capacity
assigned for captive use
• Exempted from payment of
Electricity duty
102 
 
COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS
Sl..
No
Name of
State
Jammu& Kashmir Karnatka Kerala Madhya Pradesh Manipur
Description Solar Power Policy for
J&K “2010”
( From RE policy of State) ( From RE policy of State) Madhya Pradesh Solar
Energy Policy – 2010 (Draft)
( From RE policy of State)
1 Order Date No. EN 354 NCE 2008
Bangalore, Dated 19th
January, 2010
G.O.(MS) No. 16/2002/
Sted dated 03.04.2002
No.1/1/2005- S& (Misc) dated
12-09-2006
2 Eligible
Producer
Any company or body
corporate or association
of body of individuals,
whether incorporated or
not, for the purpose of
captive use and/ or for
selling of electricity as
per MNRE & JKSERC
norms
KPTCL for allotment of
projects above 100 MW
• Companies, Co-operative,
Partnerships, Local Self
Governments, registered
societies, NGOs,
individuals
• Power producers for
captive consumption
• All Solar Power Developers
• Manufacturing units of
equipment and ancillaries
related to solar power
projects.
.
• All Power producers
generating Grid-grade
electricity with installed
capacity not exceeding 25
MW
• Producers generating
electricity for captive
consumption
• Companies, Co-operative,
partnerships, Village
Development Board/
Village Authorities,
individuals etc.
3 Land
Allotment
• Available sites to be
advertised
• Govt. land on lease for
25 years at premium of
Rs.1/Kanal
• Private land to be
arranged by entity
• Govt. to acquire land
and lease to entity
lease for 25 years at
premium of Rs.1/Kanal
plus compensation for
land
• Govt. to facilitate
acquisition of forest
land
• Government land for
Karnataka Renewable
Energy Development Limited
(KREDL)
• Private land from owners
• Land owner farmers to be
equity partners for equity not
less than 5% of gross energy
generated
• 10% barren Government
lands reserved for industrial
use to KREDL for RE
development
• KREDL to sub-lease land to
developer for 30 years.
• Government Land @ Rs. 1/-
/year (token premium) for
30 years or life of the
Project, whichever is less
• Private land to be acquired
by Govt. & made available
to Developer at acquisition
cost
• Permission for Govt. land to
be given by Non-
Convention Energy
Department (GoMP)
• 50% exemption on stamp
duty on private land.
4 Operative
Period
From date of publication
in state gazette until
superseded or modified
5 years up to 2014 With effect from date of
Issuance and to remain in
force until further orders
From the date publication
until superseded or modified
103 
 
5 Sale of Power
And
Tariff
• To PDD or third party
in or outside the state
• For sale to PDD tariff
as per JKSERC
To ESCOMs in area where
Project is located at KERC
Tariff of Rs. 3.40 / unit.
• PPA for a minimum
period of five years.
• Power purchase by KSEB
at a ceiling rate of Rs.2.80
per unit with 2000-01 as
base year and 5%
escalation every year up to
5 years of operation.
• Higher Tariff in special
cases
• Terms & Conditions for
Power purchase by
distribution licensee or MP
Power trading company as
per MPERC
• Purchase rate of electricity
generated by developers as
per MPERC
• Power Department to
purchase electricity at a
minimum rate of Rs.2.25/-
per unit to be increased
every year for 10
operational years.
• Thereafter the rate of
increase to be mutually
settled between Power
Deptt. and developer.
• PPA for 20 years unless
Developer wants shorter
period
6 Wheeling Wheeling charges as per
JKSERC for sale of power
within or outside the state
5% wheeling charges On KSEB grid for captive
use or for banking, at a
wheeling charge of 5 % of
energy fed into the grid,
including transmission loss
• Wheeling charges as per
MPERC
• 4% subsidy is available
• Department to transmit on
its grid the power
generated by producer and
make it available to him for
captive use or to a third
party for sale within the
State, at a uniform
wheeling charge of 2% of
the energy fed to the grid,
• Third party to be a HT
consumer of power.
7 Banking Permitted and to be
specified in wheeling and
banking agreement
executed with PDD
Allowed for energy banked with
KPTCL/Distribution licensee
• Allowed 100% from June
to February every
financial year & from
March to June.
• If the banked energy is
not utilized at the end of
the year, it can be
purchased by KSEB at
the average selling rate
of KSEB
Allowed up to 1 year
8 Power
Evacuation
and
Grid
Interfacing
• Evacuation facility from
the Solar substation/
switch yard to PDD
substation to be
approved by PDD/ JK
SERC
• Power by SPP to be
injected at 11kV or
KPCTL to provide
transmission lines and
developers to bear the cost of
lines from the project site to
the sub-stations as per grid
norms
• Developer to bear cost for
evacuation facilities &
interfacing including
maintenance.
• KSEB to initially bear the
expenditure for erection
of HT sub stations and
transmission
• Cost for evacuation
facilities to be borne by
Developer
• T&D lines and other
equipment to be installed
by the developer or
• By MPSEB/ Successor
• Developer to bear cost for
evacuation facilities &
interfacing up to the
nearest HT lines as well as
for Mtc.
• Alternatively, these works
and their maintenance
could be undertaken by the
104 
 
above
• Transmission line from
solar substation switch
yard to PDD substation
to be laid by entity
infrastructure.
• ANERT to recover 50 per
cent of this expenditure
from the power project
promoters and give it to
KSEB.
Company at the cost of
developer.
•Maintenance of T&D lines &
equipments by
MPSEB/Successor
Company at the cost of
developer.
•All incidental/ operational
cost towards power
evacuation shall be borne
by the project developer
during the entire life span of
the project
Power department at
charges to be decided by
the Department
• Cost of augmentation of
sub-station capacity at
33/11 KV or higher &
transmission lines to be
borne by the Department.
9 Incentives
and
General
• Projects
commissioned during
operative period
eligible for incentives
for 25 years from
COD or life of SPPs,
whichever is earlier
• No entry tax on power
generation/
transmission
equipment and
building material
used for SPPs
• Exemption from court
fee for registration of
documents for lease
of land
• No royalty in the
shape of free power
to be paid for solar
projects
• Exemption from
demand cut of 50% of
installed capacity for
captive use
• Electricity duty
exempted for self
consumption /Sale to
third party / sale to
• KREDL to facilitate availing
CDM
• MNRE supported solar grid
connected projects of 1MW
and above have incentive up
to Rs 12/kWh for solar PV
and Rs. 10/kWh for solar
thermal in addition to tariff
allowed by KERC.
• Roof Top grid connected
solar KWp projects of 5 KWp
to 100 KWp to be connected
at 415 V, 3 phase, 11 kV
level of distribution licensees
with maximum energy
injection to be not more than
70% of the consumption from
distribution licensee sources
• After the plant completes 11
years, it has to sell power to
Energy supply companies on
tariff based on variable cost
as per KERC norms
• Developer to commission the
project with grid
synchronization within a
period of 3 years from the
date of statutary clearance
• Industry status under the
schemes administrated by
Industries Department and
incentives to be made
available to them.
• Large Industries having
2000 KVA and above as
connected load, to
produce at least 5 per cent
of their requirement
through captive power
plants
• KSEB to provide facilities
of an irrevocable, divisible,
revolving and confirmed
stand by Letter of Credit
(LC) by any Nationalised
Bank.
• The amount of LC to be
equal to the Expected
Payment for one month by
Board.
• All transactions involving
wheeling, banking or sale
of power to be settled on a
monthly basis.
• Solar equipment and other
related equipment exempted
from Entry Tax
• Electricity duty exempted
subject to generation of at-
least 70% of generation
declared in DPR
• Developers to share CDM
benefits on gross basis with
distribution licensee as per
GoI norms or on
equal(50:50) basis from day
one
• Distribution licensee shall
pass on 10% of the CDM
benefits from its share to the
MPUVN
• Developer to commission
the Solar PV Project in 12
months and solar thermal
in 28 months from signing
of PPA
• Developers can Migrate
from 2006 –State policy to
this policy i.e. MP Solar
Policy 2010 (as detailed in
the policy)
• All transactions involving
wheeling, banking or sale
of power to be settled on
monthly basis
• Exemption from electricity
duty for 5 years from COD
for captive use or third
party sale.
• Producers to be treated as
industrial units and similar
incentives available to them
• Concessions given to
Industrial units in backward
areas to be provided
• Infrastructural facilities to
be on the lines of industrial
units if plant is set up in
industrial area developed
by State Govt.
• GoI Incentives
• Exemption of tax on Solar
devices and spare parts.
• Sale Tax exempted
• MANIREDA to facilitate
grant of loans by IREDA &
MNRE & accord of
clearances for execution
105 
 
licensees
• Developer to pass
the gross benefits of
CDM to the
distribution licensee
with whom PPA is
signed
• Mortgage deed in
favour of financing
institutions exempted
from payment of
stamp duty
• 50% of the installed capacity
assigned for captive use
• If the applicant does not
take effective steps (i.e at
least 10% of the total
project cost not incurred
within six months) to
implement the project, the
agreement to be
terminated and site
allotted to another
applicant
106 
 
COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS
Sl..
No
Name of State Meghalaya Mizoram Orissa Punjab
Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)
1 Order Date Resolution No. 6971/ST, Bhubaneswar,
ST-IV-RE-13/2005, dated 3-12-2005
No.10/106/2006-STE(1)5390 dated
24th
Nov, 2006.
2 Eligible
Producer
• Power producing
entrepreneur. Companies,
cooperative, partnership
individuals etc.
• All power producers
generating grid-grade
electricity with installed
capacity between 10 KW and
25 MW
• For captive consumption
• Companies, cooperative,
partnerships, individuals,
charitable societies, Non-
Governmental Organizations,
etc.
• Producers generating 10 KW
to 25 MW of grid-grade
Electricity
• Producers in the joint-sector,
formed by Government
agencies and the producers.
• For captive consumption.
Any Public Sector, Private Entrepreneur,
Registered NGOs, Cooperatives,
Consortia etc.
3 Land Allotment Land lease not exceeding 99
years,
• Government land if available
• If the applicant does not take effective
step to implement the project within 6
months from date of obtaining
possession of land the agreement shall
be terminated
• Government land at lease rent of
Rs.1/sq. meter/ annum for 33 years
• Agricultural land without conversion
charges
4 Operative
Period
From the date of publication till
superseded or modified
With immediate effect for 10 years Five years w.e.f. 8
th
December,
2006.
5 Sale of Power
And
Tariff
DISCOM to purchase electricity
at SERC rate & on mutually
accepted terms and conditions
• Department to purchase
electricity at a minimum rate of
Rs. 3.50/unit applicable for the
year 2002-03 with escalation
of 5% every year for 10
operational years.
• Thereafter the rate of increase
to be mutually settled between
Department and the Producer.
• It shall not be compulsory for
power producer to sell power
• To bulk suppliers/ distribution
licensee on basis of PPA with the
approval of OERC
• Energy not utilized during the year
for captive use to be treated as
sold to GRIDCO/ DISTCO.
• Rs.7.00 per unit (Base year 2006-
07) with annual escalation @ 5%
up to 2011-2012
• Thereafter PSEB / HT tariff ,
whichever is higher
107 
 
to Department
• Developers with concurrence
of the Department may sell
the electricity to a third party
within and outside the State,
at a rate to be mutually settled
between them.
• PPA for minimum period of 10
years unless Developer wants
for shorter period
6 Wheeling • STU to transmit on its grid the
power for captive use of
developer or to a third party or
sale within the state, at an
applicable wheeling charge.
• Third party to be HT consumer
of the power unless relaxed
by the DISCOM.
• Department to transmit on its
grid the power generated and
make it available to him for
captive use or to a third party
nominated by eligible
producer for sale within the
State, at a uniform wheeling
charge of 2% of the energy
supplied to the grid.
• Third party to be HT
consumer unless condition
relaxed by DISCOM
• Allowed, subject to payment of
transmission/ distribution and
wheeling charges both for captive use
and out side the State as approved
by OERC
• Developer may supply energy to any
area not served by the licensee .
2% of energy fed to the grid
7 Banking Allowed up to 1year • Allowed on annual basis.
• Banking charges 2.5% of energy
dispatched
Allowed.
8 Power
Evacuation
And
Grid
Interfacing
• Developer to bear cost for
evacuation facilities &
interfacing up to the nearest
HT lines as well as for
Maintenance.
• Alternatively, these works and
their maintenance could be
undertaken by the DISCOM at
charges to be decided by the
DISCOM/ SERC
• Developer to bear cost for
evacuation facilities &
interfacing up to the nearest
HT lines as well as for
Maintenance
• Alternatively, the above works
and their maintenance could
be undertaken by the
Department at charges to be
decided by the Department
and the producer on mutual
agreement.
• Cost of augmentation of sub-
station capacity at 33/11 KV or
higher & transmission lines to
be borne by the Department
Grid interfacing with the generating
units to be constructed by the
developer at their own cost.
.
Private developer, at its own cost to
provide the evacuation system
including transmission lines.
108 
 
9 Incentives
and
General
• Infrastructural facilities to be
on the lines of industrial units
if plant is set up in industrial
area developed by State
Govt..
• Exemption from electricity
duty for 5 years from COD for
captive use or third party sale.
• Sales Tax/ VAT deferment /
remission as applicable
• Meghalaya Non-Conventional
and Rural Energy
Development Agency
(MNREDA), to facilitate
clearances for the projects at
the State and Central levels
and grant of loans by Indian
Renewal Energy Development
Authority (IREDA) and
subsidies by MNRE.
• Developer to submit
applications for projects and
grid interfacing to MNREDA
and DISCOM.
• MNREDA/ State government
to provide clearance within a
period of 2 months from the
date of submission of
application
• Exemption from electricity
duty for captive use or third
party sale
• Infrastructural facilities to be
on the lines of industrial units
if plant is set up in industrial
area developed by State Govt.
• Producers to be treated as
industrial units and similar
incentives available to them
• Concessions given to
Industrial units in backward
areas to be provided
• State Government to extend
all incentives and facilities
granted by the Central
Government for similar
Undertaking in other States.
• Equipments and materials
exempted from State sales tax
• All transactions involving
wheeling, banking or sale of
power to be settled on a
monthly basis
• Reduction in contract demand
up to 30% of installed capacity
permitted, in case power plant
is not utilizing Department’s
Grid for supply of power to the
consumer
• Exempted from electricity duty
• No transmission charges for CPP or
NRSE maintenance for a period for 5
years from COD
• In the event of project work not started
within a year of approval of PPA, the
MOU and PPA will automatically stand
cancelled.
• VAT @ 4% on manufacturing &
sale of NRSE devise / system and
equipment / machinery
• PEDA to assist in seeking carbon
credit under CDM
• Octroi exempted
109 
 
COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS
Sl..
No
Name of State Rajasthan Tripura Uttarakhand
Description (From RE policy of State) (From RE policy of State) (From RE policy of State)
1 Order Date Energy Deptt. letter no. F.20 (4) Energy/2004
dated 25.10.2004 and amended vide letters
of even nos. dated 10.3.2005, 16.7.05,
18.8.05, 24.2.06, 30-11-06 ,19-1-07, 27/29-
3-2008, 15.5.2008, and 10-11-2008.
No.263/I(2)/2008-04(8)-96/2001 29
th
dated Jan, 2008
2 Eligible
Producer
• Companies, cooperative, partnerships,
individuals, charitable societies, Non-
Governmental Organizations etc.
• Government agencies and the producers
(JV)
• Power producers for captive consumption.
3 Land Allotment • Government land to be allotted to Power
Producer at concessional rates viz, 10% of
DLC rates as detailed in policy
• Private Land to be procured at cost.
• If any Producer initiates activities on the
allotted land without project approval, grid
connectivity to be allowed only after
payment of an amount @ Rs. 5.00 lacs per
MW as penalty amount to RREC
• Government Land on lease
• Private Land on payment basis
• Forest Land as per the Forest Conservation
Act
4 Operative
Period
Date of its notification till
superseded or modified
5 Sale of Power
and
Tariff
• Producers may use power for captive
consumption or for sale to
consumers/licensees including DISCOMS.
• Energy to be offered to open access
consumer/ DISCOMS/ CPPs within the
State
• After fulfilling RE Obligation developers
may sell surplus energy out side the State.
• Price of power to be sold to consumers /
licensees other than DISCOMS as per
mutual agreement between seller and the
purchaser.
• Department / TSECL to purchase electricity
at TERC tariff
• Third party sale permitted.
• PPA for a minimum period of 10 years.
• Department to consider PPA for shorter
period on merit.
• Increase of tariff to be mutually settled
between Department / TSECL and the
producer
• UPCL to have first right of purchase of electricity
• UERC to determine price of electricity
• Government of Uttarakhand to Provide guarantee for
Payments to be made by UPCL for purchase of Pow
110 
 
• For DISCOMS the price of power to be as
per RERC order 09-03-2007 &
amendment 14-03-2007
• Cap on purchase of energy to be as
specified by the (RERC)
6 Wheeling • Except in case of power sold to DISCOMS,
Producer to pay wheeling charges @
10% of the energy billed into the grid
inclusive of the T&D losses.
• In respect of third party sale and / or
captive use for which PPAs are signed
after March 31, 2007, the transmission,
wheeling and other charges shall be as
specified by RERC.
2% of the energy supplied to the grid. • . UPCL/PTCUL to transmit power through its grid
for captive use or third party sale within/ outside the
state
• Wheeling charges to be announced in advance
7 Banking • Allowed
• For third party sale / captive use for which
PPAs signed after March 31, 2007, the
banking to be as specified by RERC.
• Banked for one Financial year.
• Unutilised banked energy will be settled at
the rate specified in the PPA.
Allowed at mutually agreed
terms
8 Power
Evacuation
And
Grid
Interfacing
A.. Except in case of solar power not
exceeding 220 kW the grid interfacing
arrangements to be made by Developer/
RVPN/ Discom
• Interfacing arrangements from the points
of generation to the pooling station and
further Receiving station to be developed
by the Producer at his own cost.
• Maintenance from Plant to receiving
station to be done by developer and O&M
from Pooling station to Receiving station
by RVPN /Discom to whom it get
transferred after completion of
interconnection
• Producer to pay Rs. 2 lacs per MW to
RVPN/ Discom, for creation of facility for
receiving Power.
• Augmentation of transmission/ distribution
systems to evacuate the power from
receiving station, to be done by RVPN /
Discom
B. RVPN/ DISCOM to grant inter-connection
facility, wherever adequate power
• Developers to bear the entire cost of
Power evacuation and interfacing
including maintenance to the nearest HT
lines.
• Cost of augmentation of sub-station
capacity at 33/11 kV or higher and
transmission lines to be borne by the
Department
T&D lines from generation site to
be provided by UPCL/PTCUL
111 
 
evacuation capacity is available, within one
month of intimation or COD, whichever is
later.
9 Incentives
And
General
• Power projects established for which PPAs
have been signed under the Policies -
1999, 2000 and 2003 to be governed as
per the terms & conditions under the
concerned policies provided the power
projects gets commissioned before 31st
March 2005..
• Developer to deposit a refundable amount
as security deposit of Rs. 5.0 lac per MW.
in the form of cash or bank guarantee with
RREC, towards completion of the project
in the prescribed time frame,
• Producers to be treated an Industry and
similar incentives available to them.
• Infrastructural facilities to be provided on the
lines of industrial units
• Sales Tax Exemption
• Incentives provided by Central Government
: as per “North East Industrial and Incentive
Promotion Policy (NEIIP), 2007.
• Solar equipment and materials exempted
from State sales tax / VAT alternately
reimbursed 100%
• CDM benefit to developers in first year, 10%
to beneficiaries in 2nd
year to be increased
by 10% every year upto 50% and then
shared equally between developer and
beneficiary.
• Producer to deposit an amount equal to
2.5% of the estimated cost of the project as
security deposit towards completion of the
project within the prescribed time frame.
• All transactions to be settled on monthly
basis.
• CDM Benefits to be passed
to the developers
• Not more than three projects in each category to be
allotted to a developer
• Preference to be accorded to industrial units located
in State in the open competitive bidding process
provided the bid is not less than 80% of the highest
bid
• If developer does not restrict to the prescribed time
schedule of completion of project, premium to be
forfeited and allotment canceled
• Projects to be offered for 40 years from the date of
award,
• Application fee (Non-refundable) - Rs. 5000/-
• Processing fee (Non-refundable) - For projects up
to 1MW – Rs. 10,000/- and more than 1MW - Rs.
25,000/-
• Security Payment - For projects up to 1MW – Rs.
20,000/- and more than 1MW- Rs. 50,000/-
• Committee headed by Chief Secretary to accord
approvals / clearances through a single window
mechanism

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AKTU Computer Networks notes --- Unit 3.pdf
 

1 final com.sum

  • 1. 99    COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS Sl.. No Name of State Bihar Chhattisgarh Gujarat Haryana Description (-From RE policy of State) (From RE policy of State) (From RE policy of State) 1 Order Date Notification No. 38 dated April 8, 2002 Solar Power Policy – 2009 G.R.No.SLR-11-2008-2176-B, dated 6th January, 2009 and modification vide G.R.No.SLR-11- 2010/170022/B dated 22 nd June, 2010 GoH, Renewable Energy Deptt. Dated 23-11-2005 2 Eligible Producer Any Industry, Institution, Private Agency, Partnership Firm, Consortia, Panchayat, Co- Operative Or Registered Society • Every unit, organisation or Private agency setting up of RE projects . • Parties may set-up units either themselves or as a joint venture • Any company or body corporate or association of body of individuals, whether incorporated or not, or artificial juridical person, • Minimum project capacity of a Solar Power Generators(SPG), in case of solar Photovoltaic (SPV) and Solar Thermal (ST) to be 5 MW each • A maximum 500 MW SPG allowed for installation Companies, Cooperatives, Partnerships, Local Self Governments, State Nodal Agency, Boards & Corporations, Power utilities, Private developers, Public – Private Partnership Companies, Consortia, Registered Societies, NGOs, individuals etc. 3 Land Allotment Government land, if available on lease, otherwise private purchase. • Govt. land, if available, on lease, • Private land to be acquired by the Govt. and made available to the party at acquisition cost. State Govt. to acquire land if necessary at the cost of IPP. 4 Operative Period 5 Years with immediate effect Up to 31.3.2014. Date of notification till a new policy is notified 5 Sale of Power and Tariff State grid/ BSEB/third party/HT Consumer of BSEB/Pvt. Consumer • Parties may use the power themselves or sell it to a third party after permission from GoC, CSEB. • CSEB to purchase at rate of Rs. 2.25 per unit. • For third party, the rates to be settled mutually . • Open Access for Third part sale • Cross subsidy exempted in case of third party sale and surplus energy over captive use to be considered as sale @85% of the tariff determined by the commission • Energy to be sold to Distribution licensees in the • To Licensee/ Utilities at HERC tariff (for new projects after this Policy) • Surplus power from captive power to utilities at negotiated price. (for old projects)
  • 2. 100    State at tariff( as detailed in Policy) for SPV & ST for 25 years 6 Wheeling On BSEB transmission and distribution system as per agreed terms with Developer On CSEB's transmission / distribution system • Allowed on payment of transmission charges and losses applicable to normal open access consumer with in the state (at 66kV and above). • For wheeling (below 66kV) transmission and wheeling losses @ 10% of the energy fed to the Grid • For wheeling to more than one location, generator to pay 5paisa/unit on the energy fed to the grid On Licensee / Utilities Grid for captive use or for Third Party sale within the State as per approved HERC tariff. 7 Banking • Allowed for one year free of cost. • If the banked energy is not utilized within twelve months, no charges shall be paid In lieu of such power. 8 Power Evacuation and Grid Interfacing Developer to bear cost for evacuation of power to the nearest State/BSEB gird/sub-station. • Developer to bear cost for evacuation of Power from plant to nearest grid sub-station • Lines/equipments to be maintained by CSEB at Developer’s cost. • Power by the SPG to be injected at 66 kV. • Evacuation facility from the Solar substation/switch yard to GETCO substation to be approved & laid by GETCO • Cost of power evacuation up to HVPN/UHBVN, DHBVN network to be borne by the Developer. 9 Incentives and General Incentives/concessions as applicable to new Industrial units/backward areas. • Incentives / concessions as applicable to new Industrial units • Reactive charges to be paid to CSEB for taking reactive power from them. • Electricity sold to third party or for self use exempted from electricity duty for 5 years • CDM benefit to developers in first year, 10% to beneficiaries in 2 nd year to be increased by 10% every year upto 50% and then shared equally between developer and beneficiary • SPGs installed and commissioned during this period to be eligible for the incentives, for a period of 25 years from the date of commissioning All new projects to be treated as “Industry” in terms of Industrial Policy , 2005 and all the incentives available to new projects to be applicable as per this Policy.
  • 3. 101    • Benefits of this policy will not be available to the projects set up under MNRE incentive scheme for SPG • Any subsidy/ incentive received by SPG developers from any source to be reduced from tariff rate except accelerated depreciation under I T Act • Exemption from demand cut up to 50% of the installed capacity assigned for captive use • Exempted from payment of Electricity duty
  • 4. 102    COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS Sl.. No Name of State Jammu& Kashmir Karnatka Kerala Madhya Pradesh Manipur Description Solar Power Policy for J&K “2010” ( From RE policy of State) ( From RE policy of State) Madhya Pradesh Solar Energy Policy – 2010 (Draft) ( From RE policy of State) 1 Order Date No. EN 354 NCE 2008 Bangalore, Dated 19th January, 2010 G.O.(MS) No. 16/2002/ Sted dated 03.04.2002 No.1/1/2005- S& (Misc) dated 12-09-2006 2 Eligible Producer Any company or body corporate or association of body of individuals, whether incorporated or not, for the purpose of captive use and/ or for selling of electricity as per MNRE & JKSERC norms KPTCL for allotment of projects above 100 MW • Companies, Co-operative, Partnerships, Local Self Governments, registered societies, NGOs, individuals • Power producers for captive consumption • All Solar Power Developers • Manufacturing units of equipment and ancillaries related to solar power projects. . • All Power producers generating Grid-grade electricity with installed capacity not exceeding 25 MW • Producers generating electricity for captive consumption • Companies, Co-operative, partnerships, Village Development Board/ Village Authorities, individuals etc. 3 Land Allotment • Available sites to be advertised • Govt. land on lease for 25 years at premium of Rs.1/Kanal • Private land to be arranged by entity • Govt. to acquire land and lease to entity lease for 25 years at premium of Rs.1/Kanal plus compensation for land • Govt. to facilitate acquisition of forest land • Government land for Karnataka Renewable Energy Development Limited (KREDL) • Private land from owners • Land owner farmers to be equity partners for equity not less than 5% of gross energy generated • 10% barren Government lands reserved for industrial use to KREDL for RE development • KREDL to sub-lease land to developer for 30 years. • Government Land @ Rs. 1/- /year (token premium) for 30 years or life of the Project, whichever is less • Private land to be acquired by Govt. & made available to Developer at acquisition cost • Permission for Govt. land to be given by Non- Convention Energy Department (GoMP) • 50% exemption on stamp duty on private land. 4 Operative Period From date of publication in state gazette until superseded or modified 5 years up to 2014 With effect from date of Issuance and to remain in force until further orders From the date publication until superseded or modified
  • 5. 103    5 Sale of Power And Tariff • To PDD or third party in or outside the state • For sale to PDD tariff as per JKSERC To ESCOMs in area where Project is located at KERC Tariff of Rs. 3.40 / unit. • PPA for a minimum period of five years. • Power purchase by KSEB at a ceiling rate of Rs.2.80 per unit with 2000-01 as base year and 5% escalation every year up to 5 years of operation. • Higher Tariff in special cases • Terms & Conditions for Power purchase by distribution licensee or MP Power trading company as per MPERC • Purchase rate of electricity generated by developers as per MPERC • Power Department to purchase electricity at a minimum rate of Rs.2.25/- per unit to be increased every year for 10 operational years. • Thereafter the rate of increase to be mutually settled between Power Deptt. and developer. • PPA for 20 years unless Developer wants shorter period 6 Wheeling Wheeling charges as per JKSERC for sale of power within or outside the state 5% wheeling charges On KSEB grid for captive use or for banking, at a wheeling charge of 5 % of energy fed into the grid, including transmission loss • Wheeling charges as per MPERC • 4% subsidy is available • Department to transmit on its grid the power generated by producer and make it available to him for captive use or to a third party for sale within the State, at a uniform wheeling charge of 2% of the energy fed to the grid, • Third party to be a HT consumer of power. 7 Banking Permitted and to be specified in wheeling and banking agreement executed with PDD Allowed for energy banked with KPTCL/Distribution licensee • Allowed 100% from June to February every financial year & from March to June. • If the banked energy is not utilized at the end of the year, it can be purchased by KSEB at the average selling rate of KSEB Allowed up to 1 year 8 Power Evacuation and Grid Interfacing • Evacuation facility from the Solar substation/ switch yard to PDD substation to be approved by PDD/ JK SERC • Power by SPP to be injected at 11kV or KPCTL to provide transmission lines and developers to bear the cost of lines from the project site to the sub-stations as per grid norms • Developer to bear cost for evacuation facilities & interfacing including maintenance. • KSEB to initially bear the expenditure for erection of HT sub stations and transmission • Cost for evacuation facilities to be borne by Developer • T&D lines and other equipment to be installed by the developer or • By MPSEB/ Successor • Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Mtc. • Alternatively, these works and their maintenance could be undertaken by the
  • 6. 104    above • Transmission line from solar substation switch yard to PDD substation to be laid by entity infrastructure. • ANERT to recover 50 per cent of this expenditure from the power project promoters and give it to KSEB. Company at the cost of developer. •Maintenance of T&D lines & equipments by MPSEB/Successor Company at the cost of developer. •All incidental/ operational cost towards power evacuation shall be borne by the project developer during the entire life span of the project Power department at charges to be decided by the Department • Cost of augmentation of sub-station capacity at 33/11 KV or higher & transmission lines to be borne by the Department. 9 Incentives and General • Projects commissioned during operative period eligible for incentives for 25 years from COD or life of SPPs, whichever is earlier • No entry tax on power generation/ transmission equipment and building material used for SPPs • Exemption from court fee for registration of documents for lease of land • No royalty in the shape of free power to be paid for solar projects • Exemption from demand cut of 50% of installed capacity for captive use • Electricity duty exempted for self consumption /Sale to third party / sale to • KREDL to facilitate availing CDM • MNRE supported solar grid connected projects of 1MW and above have incentive up to Rs 12/kWh for solar PV and Rs. 10/kWh for solar thermal in addition to tariff allowed by KERC. • Roof Top grid connected solar KWp projects of 5 KWp to 100 KWp to be connected at 415 V, 3 phase, 11 kV level of distribution licensees with maximum energy injection to be not more than 70% of the consumption from distribution licensee sources • After the plant completes 11 years, it has to sell power to Energy supply companies on tariff based on variable cost as per KERC norms • Developer to commission the project with grid synchronization within a period of 3 years from the date of statutary clearance • Industry status under the schemes administrated by Industries Department and incentives to be made available to them. • Large Industries having 2000 KVA and above as connected load, to produce at least 5 per cent of their requirement through captive power plants • KSEB to provide facilities of an irrevocable, divisible, revolving and confirmed stand by Letter of Credit (LC) by any Nationalised Bank. • The amount of LC to be equal to the Expected Payment for one month by Board. • All transactions involving wheeling, banking or sale of power to be settled on a monthly basis. • Solar equipment and other related equipment exempted from Entry Tax • Electricity duty exempted subject to generation of at- least 70% of generation declared in DPR • Developers to share CDM benefits on gross basis with distribution licensee as per GoI norms or on equal(50:50) basis from day one • Distribution licensee shall pass on 10% of the CDM benefits from its share to the MPUVN • Developer to commission the Solar PV Project in 12 months and solar thermal in 28 months from signing of PPA • Developers can Migrate from 2006 –State policy to this policy i.e. MP Solar Policy 2010 (as detailed in the policy) • All transactions involving wheeling, banking or sale of power to be settled on monthly basis • Exemption from electricity duty for 5 years from COD for captive use or third party sale. • Producers to be treated as industrial units and similar incentives available to them • Concessions given to Industrial units in backward areas to be provided • Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. • GoI Incentives • Exemption of tax on Solar devices and spare parts. • Sale Tax exempted • MANIREDA to facilitate grant of loans by IREDA & MNRE & accord of clearances for execution
  • 7. 105    licensees • Developer to pass the gross benefits of CDM to the distribution licensee with whom PPA is signed • Mortgage deed in favour of financing institutions exempted from payment of stamp duty • 50% of the installed capacity assigned for captive use • If the applicant does not take effective steps (i.e at least 10% of the total project cost not incurred within six months) to implement the project, the agreement to be terminated and site allotted to another applicant
  • 8. 106    COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS Sl.. No Name of State Meghalaya Mizoram Orissa Punjab Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State) 1 Order Date Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/2005, dated 3-12-2005 No.10/106/2006-STE(1)5390 dated 24th Nov, 2006. 2 Eligible Producer • Power producing entrepreneur. Companies, cooperative, partnership individuals etc. • All power producers generating grid-grade electricity with installed capacity between 10 KW and 25 MW • For captive consumption • Companies, cooperative, partnerships, individuals, charitable societies, Non- Governmental Organizations, etc. • Producers generating 10 KW to 25 MW of grid-grade Electricity • Producers in the joint-sector, formed by Government agencies and the producers. • For captive consumption. Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives, Consortia etc. 3 Land Allotment Land lease not exceeding 99 years, • Government land if available • If the applicant does not take effective step to implement the project within 6 months from date of obtaining possession of land the agreement shall be terminated • Government land at lease rent of Rs.1/sq. meter/ annum for 33 years • Agricultural land without conversion charges 4 Operative Period From the date of publication till superseded or modified With immediate effect for 10 years Five years w.e.f. 8 th December, 2006. 5 Sale of Power And Tariff DISCOM to purchase electricity at SERC rate & on mutually accepted terms and conditions • Department to purchase electricity at a minimum rate of Rs. 3.50/unit applicable for the year 2002-03 with escalation of 5% every year for 10 operational years. • Thereafter the rate of increase to be mutually settled between Department and the Producer. • It shall not be compulsory for power producer to sell power • To bulk suppliers/ distribution licensee on basis of PPA with the approval of OERC • Energy not utilized during the year for captive use to be treated as sold to GRIDCO/ DISTCO. • Rs.7.00 per unit (Base year 2006- 07) with annual escalation @ 5% up to 2011-2012 • Thereafter PSEB / HT tariff , whichever is higher
  • 9. 107    to Department • Developers with concurrence of the Department may sell the electricity to a third party within and outside the State, at a rate to be mutually settled between them. • PPA for minimum period of 10 years unless Developer wants for shorter period 6 Wheeling • STU to transmit on its grid the power for captive use of developer or to a third party or sale within the state, at an applicable wheeling charge. • Third party to be HT consumer of the power unless relaxed by the DISCOM. • Department to transmit on its grid the power generated and make it available to him for captive use or to a third party nominated by eligible producer for sale within the State, at a uniform wheeling charge of 2% of the energy supplied to the grid. • Third party to be HT consumer unless condition relaxed by DISCOM • Allowed, subject to payment of transmission/ distribution and wheeling charges both for captive use and out side the State as approved by OERC • Developer may supply energy to any area not served by the licensee . 2% of energy fed to the grid 7 Banking Allowed up to 1year • Allowed on annual basis. • Banking charges 2.5% of energy dispatched Allowed. 8 Power Evacuation And Grid Interfacing • Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance. • Alternatively, these works and their maintenance could be undertaken by the DISCOM at charges to be decided by the DISCOM/ SERC • Developer to bear cost for evacuation facilities & interfacing up to the nearest HT lines as well as for Maintenance • Alternatively, the above works and their maintenance could be undertaken by the Department at charges to be decided by the Department and the producer on mutual agreement. • Cost of augmentation of sub- station capacity at 33/11 KV or higher & transmission lines to be borne by the Department Grid interfacing with the generating units to be constructed by the developer at their own cost. . Private developer, at its own cost to provide the evacuation system including transmission lines.
  • 10. 108    9 Incentives and General • Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt.. • Exemption from electricity duty for 5 years from COD for captive use or third party sale. • Sales Tax/ VAT deferment / remission as applicable • Meghalaya Non-Conventional and Rural Energy Development Agency (MNREDA), to facilitate clearances for the projects at the State and Central levels and grant of loans by Indian Renewal Energy Development Authority (IREDA) and subsidies by MNRE. • Developer to submit applications for projects and grid interfacing to MNREDA and DISCOM. • MNREDA/ State government to provide clearance within a period of 2 months from the date of submission of application • Exemption from electricity duty for captive use or third party sale • Infrastructural facilities to be on the lines of industrial units if plant is set up in industrial area developed by State Govt. • Producers to be treated as industrial units and similar incentives available to them • Concessions given to Industrial units in backward areas to be provided • State Government to extend all incentives and facilities granted by the Central Government for similar Undertaking in other States. • Equipments and materials exempted from State sales tax • All transactions involving wheeling, banking or sale of power to be settled on a monthly basis • Reduction in contract demand up to 30% of installed capacity permitted, in case power plant is not utilizing Department’s Grid for supply of power to the consumer • Exempted from electricity duty • No transmission charges for CPP or NRSE maintenance for a period for 5 years from COD • In the event of project work not started within a year of approval of PPA, the MOU and PPA will automatically stand cancelled. • VAT @ 4% on manufacturing & sale of NRSE devise / system and equipment / machinery • PEDA to assist in seeking carbon credit under CDM • Octroi exempted
  • 11. 109    COMBINED SUMMARY OF STATE POLICIES FOR - SOLAR POWER PROJECTS Sl.. No Name of State Rajasthan Tripura Uttarakhand Description (From RE policy of State) (From RE policy of State) (From RE policy of State) 1 Order Date Energy Deptt. letter no. F.20 (4) Energy/2004 dated 25.10.2004 and amended vide letters of even nos. dated 10.3.2005, 16.7.05, 18.8.05, 24.2.06, 30-11-06 ,19-1-07, 27/29- 3-2008, 15.5.2008, and 10-11-2008. No.263/I(2)/2008-04(8)-96/2001 29 th dated Jan, 2008 2 Eligible Producer • Companies, cooperative, partnerships, individuals, charitable societies, Non- Governmental Organizations etc. • Government agencies and the producers (JV) • Power producers for captive consumption. 3 Land Allotment • Government land to be allotted to Power Producer at concessional rates viz, 10% of DLC rates as detailed in policy • Private Land to be procured at cost. • If any Producer initiates activities on the allotted land without project approval, grid connectivity to be allowed only after payment of an amount @ Rs. 5.00 lacs per MW as penalty amount to RREC • Government Land on lease • Private Land on payment basis • Forest Land as per the Forest Conservation Act 4 Operative Period Date of its notification till superseded or modified 5 Sale of Power and Tariff • Producers may use power for captive consumption or for sale to consumers/licensees including DISCOMS. • Energy to be offered to open access consumer/ DISCOMS/ CPPs within the State • After fulfilling RE Obligation developers may sell surplus energy out side the State. • Price of power to be sold to consumers / licensees other than DISCOMS as per mutual agreement between seller and the purchaser. • Department / TSECL to purchase electricity at TERC tariff • Third party sale permitted. • PPA for a minimum period of 10 years. • Department to consider PPA for shorter period on merit. • Increase of tariff to be mutually settled between Department / TSECL and the producer • UPCL to have first right of purchase of electricity • UERC to determine price of electricity • Government of Uttarakhand to Provide guarantee for Payments to be made by UPCL for purchase of Pow
  • 12. 110    • For DISCOMS the price of power to be as per RERC order 09-03-2007 & amendment 14-03-2007 • Cap on purchase of energy to be as specified by the (RERC) 6 Wheeling • Except in case of power sold to DISCOMS, Producer to pay wheeling charges @ 10% of the energy billed into the grid inclusive of the T&D losses. • In respect of third party sale and / or captive use for which PPAs are signed after March 31, 2007, the transmission, wheeling and other charges shall be as specified by RERC. 2% of the energy supplied to the grid. • . UPCL/PTCUL to transmit power through its grid for captive use or third party sale within/ outside the state • Wheeling charges to be announced in advance 7 Banking • Allowed • For third party sale / captive use for which PPAs signed after March 31, 2007, the banking to be as specified by RERC. • Banked for one Financial year. • Unutilised banked energy will be settled at the rate specified in the PPA. Allowed at mutually agreed terms 8 Power Evacuation And Grid Interfacing A.. Except in case of solar power not exceeding 220 kW the grid interfacing arrangements to be made by Developer/ RVPN/ Discom • Interfacing arrangements from the points of generation to the pooling station and further Receiving station to be developed by the Producer at his own cost. • Maintenance from Plant to receiving station to be done by developer and O&M from Pooling station to Receiving station by RVPN /Discom to whom it get transferred after completion of interconnection • Producer to pay Rs. 2 lacs per MW to RVPN/ Discom, for creation of facility for receiving Power. • Augmentation of transmission/ distribution systems to evacuate the power from receiving station, to be done by RVPN / Discom B. RVPN/ DISCOM to grant inter-connection facility, wherever adequate power • Developers to bear the entire cost of Power evacuation and interfacing including maintenance to the nearest HT lines. • Cost of augmentation of sub-station capacity at 33/11 kV or higher and transmission lines to be borne by the Department T&D lines from generation site to be provided by UPCL/PTCUL
  • 13. 111    evacuation capacity is available, within one month of intimation or COD, whichever is later. 9 Incentives And General • Power projects established for which PPAs have been signed under the Policies - 1999, 2000 and 2003 to be governed as per the terms & conditions under the concerned policies provided the power projects gets commissioned before 31st March 2005.. • Developer to deposit a refundable amount as security deposit of Rs. 5.0 lac per MW. in the form of cash or bank guarantee with RREC, towards completion of the project in the prescribed time frame, • Producers to be treated an Industry and similar incentives available to them. • Infrastructural facilities to be provided on the lines of industrial units • Sales Tax Exemption • Incentives provided by Central Government : as per “North East Industrial and Incentive Promotion Policy (NEIIP), 2007. • Solar equipment and materials exempted from State sales tax / VAT alternately reimbursed 100% • CDM benefit to developers in first year, 10% to beneficiaries in 2nd year to be increased by 10% every year upto 50% and then shared equally between developer and beneficiary. • Producer to deposit an amount equal to 2.5% of the estimated cost of the project as security deposit towards completion of the project within the prescribed time frame. • All transactions to be settled on monthly basis. • CDM Benefits to be passed to the developers • Not more than three projects in each category to be allotted to a developer • Preference to be accorded to industrial units located in State in the open competitive bidding process provided the bid is not less than 80% of the highest bid • If developer does not restrict to the prescribed time schedule of completion of project, premium to be forfeited and allotment canceled • Projects to be offered for 40 years from the date of award, • Application fee (Non-refundable) - Rs. 5000/- • Processing fee (Non-refundable) - For projects up to 1MW – Rs. 10,000/- and more than 1MW - Rs. 25,000/- • Security Payment - For projects up to 1MW – Rs. 20,000/- and more than 1MW- Rs. 50,000/- • Committee headed by Chief Secretary to accord approvals / clearances through a single window mechanism