Fiscal and Financial Incentives for Promotion of Power Generation from New and Renewable Energy Sources

powerThe Government is giving various fiscal and financial incentives, such as capital/interest subsidy, generation based incentives, accelerated depreciation, concessional excise and customs duties to promote power generation from new and renewable energy sources in the country.

 

Incentives/Subsidy available under renewable schemes/programmes for power generation.

 

1. Wind Power

DEMONSTRATION PROJECTS IN

   Special Category States

   (NE Region, Sikkim, J&K, HP and Uttarakhand)

   Rs.3.00 crore X  C^0.646

Other States

   Rs.2.50 crore X   C^0.646

C:  Capacity of the project in MW;

       ^: raised to the power

2. SMALL HYDRO POWER PROJECTS

Support to new SHP projects in State sector:

Category Above 100 KW and

up to 1000 KW

Above 1 MW – 25 MW
Special category and NE States Rs.50,000 / KW Rs. 5.00 crore for first MW + Rs.50 lakh / MW  for each additional  MW
Other States Rs.25,000 / KW Rs. 2.50 crore for first MW + Rs.40 lakh / MW  for each additional  MW

 Support to new SHP project in private/cooperative /joint sector:

  Category  Up to 1000 KW Above 1 MW – 25 MW
Special category and NE States  

Rs. 20,000 / KW

Rs. 2.00 crore for first MW + Rs.30 lakh / MW  for each additional MW
Other States  

Rs. 12,000 / KW

Rs. 1.20 crore for first MW + Rs.20 lakh / MW  for each additional MW

 

3. BIOMASS POWER PROJECT AND BAGASSE COGENERATION PROJECTS

Private/Joint/Cooperative/Public Sector Sugar Mills:

  Special Category and NE States

Other States

Biomass Power projects Rs.25 lakh X (C MW)^0.646

Rs.20 lakh X (C MW)^0.646

Bagasse Co-generation Rs.18 lakh X(C MW)^0.646

Rs.15 lakh X (C MW)^0.646

Bagasse Co-generation projects by cooperative/ public sector sugar mills

40 bar & above

60 bar & above

80 bar & above

 

     Rs.40 lakh

     Rs.50 lakh

      Rs.60 lakh

Per MW of surplus power

(maximum support Rs. 8.0 crore per project)

Rs.40 lakh

Rs.50 lakh

Rs.60 lakh

Per MW of surplus power

(maximum support Rs. 8.0 crore per project)

 

 

4. SOLAR ENERGY

Solar Energy Systems

(Photovoltaic/Thermal)

Subsidy of  30% of project cost  and / or 5% interest bearing loans.

For solar light through NABAAD, RRD and other commercial bank 40% subsidy is available.