The Cabinet Committee
on Economic Affairs, chaired by the Prime Minister, Shri Narendra Modi,
today approved the enhancement of capacity from 20,000 MW to 40,000 MW
of the Scheme for Development of Solar Parks and Ultra Mega Solar Power
Projects. The enhanced capacity would ensure setting up of at least 50
solar parks each with a capacity of 500 MW and above in various parts of
the country. Smaller parks in Himalayan and other hilly States where
contiguous land may be difficult to acquire in view of the difficult
terrain, will also be considered under the scheme. The capacity of the
solar park scheme has been enhanced after considering the demand for
additional solar parks from the States.
The Solar Parks and Ultra Mega Solar Power Projects will be set up by
2019-20 with Central Government financial support of Rs.8100 crore. The
total capacity when operational will generate 64 billion units of
electricity per year which will lead to abatement of around 55 million
tonnes of CO2 per year over its life cycle.
It would also contribute to long term energy security of the country and
promote ecologically sustainable growth by reduction in carbon emissions
and carbon footprint, as well as generate large direct & indirect
employment opportunities in solar and allied industries like glass,
metals, heavy industrial equipment etc. The solar parks will also
provide productive use of abundant uncultivable lands which in turn
facilitate development of the surrounding areas.
All the States and UTs are eligible for benefits under the scheme. The
State Government will first nominate the Solar Power Park Developer (SPPD)
and also identify the land for the proposed solar park. It will then
send a proposal to MNRE for approval along with the name of the SPPD.
The SPPD will then be sanctioned a grant of upto Rs.25 Lakh for
preparing a Detailed Project Report (DPR) of the Solar Park. Thereafter,
Central Financial Assistance (CFA) of up to Rs. 20 lakhs/MW or 30
percent of the project cost including Grid-connectivity cost, whichever
is lower, will be released as per the milestones prescribed in the
scheme. Solar Energy Corporation India (SECI) will administer the scheme
under the direction of MNRE. The approved grant will be released by SECI.
The solar parks will be developed in collaboration with State
Governments/UTs. The State Governments/UTs are required to select the
SPPD for developing and maintaining the solar parks.
Ministry of New and Renewable Energy (MNRE) is already implementing a
scheme for development of at least 25 solar parks with an aggregate
capacity of 20,000 MW, which was launched in December 2014. As on date,
34 solar parks of aggregate capacity 20,000 MW have been approved which
are at various stages of development.