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

The 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

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.