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    Development of Solar Parks and Ultra Mega Solar Power Projects

    Objective

    Solar power projects can be set up anywhere in the country, however the solar power projects developed in scattered manner leads to higher project cost per MW and higher transmission losses. Individual projects of smaller capacity incur significant expenses in site development, drawing separate transmission lines to nearest substation, procuring water and in creation of other necessary infrastructure. It also takes longer time for project developers to acquire land, get all types of clearances and permissions etc. which ultimately delays the project. To overcome these challenges, the scheme for “Development of Solar Parks and Ultra-Mega Solar Power Projects” was rolled out in December, 2014 with an objective to facilitate the solar project developers to set up projects expeditiously.

    Period

    Up to 2025-26

    Salient Features

      • A solar park is large chunk of land developed with common infrastructure facilities like transmission infrastructure, road, water, drainage, communication network etc. with all statutory clearances. Thus, the solar project developers can set up solar projects hassle-free.
      • The scheme was rolled out by Ministry of New & Renewable Energy on 12-12-2014. Under the scheme, it was proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15.
      • The capacity of the Scheme was enhanced from 20,000 MW to 40,000 MW on 21-03-2017. These parks are proposed to be set up by 2025-26.
      • The scheme envisages supporting the States/UTs in setting up solar parks at various locations in the country with a view to create required infrastructure for setting up of solar power projects. The solar parks provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc. The scheme facilitates and speed up installation of grid connected solar power projects for electricity generation on a large scale.
      • All the States and Union Territories are eligible for getting benefit under the scheme.
      • The capacity of the solar parks shall be 500 MW and above. However, smaller parks are also considered where contiguous land may be difficult to acquire in view of difficult terrain and where there is acute shortage of non-agricultural land.
      • The Solar Parks are developed in collaboration with the State Governments and their agencies, CPSUs, and private entrepreneurs. The implementing agency is termed as Solar Power Park Developer (SPPD). There are 8 modes for selection of SPPDs.

    CFA Pattern:

    • Under the scheme, the Ministry provides Central Financial Assistance (CFA) of up to Rs. 25 lakh per solar park for preparation of Detailed Project Report (DPR). Beside this, CFA of up to Rs. 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving the milestones prescribed in the scheme.
    • The various modes for selection of SPPD and eligibility of CFA under various modes are given as under:
    Mode Brief Description CFA Pattern
    Mode-1
    • The State designated nodal agency or a State Government Public Sector Undertaking (PSU) or a Special Purpose Vehicle (SPV) of the State Government.
    • Central Public Sector Undertakings (CPSUs) like SECI, NTPC etc.
    		 Rs 12 lakh/MW or 30 % of the project cost to SPPD for development of internal infrastructure,
    and Rs 8 lakh/MW or 30 % of the project cost to the CTU/STU for creation of external transmission infrastructure.
    Mode-2 A Joint Venture Company of State designated nodal agency and Solar Energy Corporation of India Ltd (SECI). Rs 12 lakh/MW or 30 % of the project cost to SPPD for development of internal infrastructure,
    and Rs 8 lakh/MW or 30 % of the project cost to the CTU/STU for creation of external transmission infrastructure.
    Mode-3 The State designates SECI as the nodal agency Rs 12 lakh/MW or 30 % of the project cost to SPPD for development of internal infrastructure,
    and Rs 8 lakh/MW or 30 % of the project cost to the CTU/STU for creation of external transmission infrastructure.
    Mode-4 (i) Private entrepreneurs with/without equity participation from the State Government Rs 12 lakh/MW or 30 % of the project cost to SPPD for development of internal infrastructure,
    and Rs 8 lakh/MW or 30 % of the project cost to the CTU/STU for creation of external transmission infrastructure.
    Mode-6 Private entrepreneurs without any Central Financial Assistance from MNRE No CFA
    Mode-7 SECI will act as the Solar Power Park Developer (SPPD) for Renewable Energy Parks Rs 20 lakh/MW or 30 % of the project cost for external transmission infrastructure only.
    Mode-8 CPSU/ state PSU/ Government organisation/ their subsidiaries or the JV of above entities can act as SPPD. Rs 20 lakh/MW or 30% of the project cost for internal infrastructure only.

    How to avail the financial assistance?

    By submitting proposals to MNRE/SECI. As on 30-06-2023, a capacity of 37,990 MW has been sanctioned in 12 states. The approved parks are at various stages of implementation.

    Status

    As on 30-06-2023, a capacity of 37,990 MW has been sanctioned in 12 states. The approved parks are at various stages of implementation.

    Whom to contact

    1. Advisor (NSM), Ministry of New and Renewable Energy Email: dilipnigam@nic.in

    2. Managing Director, Solar Energy Corporation of India (SECI), 6th Floor, Plate-B, NBCC Office Block Tower-2, East Kidwai Nagar, New Delhi-110023, Email: md@seci.co.in

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