Budget may offer incentives for solar power plants

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New Delhi | Updated: February 8, 2016 10:26:34 AM

Kant has suggested fiscal and non-fiscal measures to prop up solar projects and create an effective eco-system for making solar power a sustainable source of energy.

The Budget may offer incentives for solar power plants with a capacity to generate 3,000 MW or more.

Inter-ministerial panel, headed by department of industrial policy and promotion (DIPP) secretary Amitabh Kant, has suggested both fiscal and non-fiscal measures to prop up solar projects and create an effective eco-system for making solar power a sustainable source of energy in the country, a government official told FE.

The panel is learnt to have proposed a new scheme for solar-powered water pumps as well, he added. The draft proposal will soon be submitted to the Prime Minister’s Office for necessary action. Prime Minister Narendra Modi has been actively promoting the generation of solar power.

The draft proposal may also focus on grid connection and land to install solar panels and manufacturing of such equipment, apart from highlighting broad contours of power purchase agreement, the official added. States could be asked to ensure the availability of land for the solar projects. Several ministries, including new and renewable energy, power, finance, are also involved in the process.

The report is part of the government’s efforts to raise the country’s solar power generation capacity by five times to 1,00,000 MW by 2022, which is expected to entail an investment of close to Rs 6 lakh crore. Of the proposed capacity expansion, 60,000 mw will come up from 20 solar parks across the country, while the remaining 40,000 MW is targeted to come from grid-connected roof-top installations. The country added capacity yo generate nearly 2,500 mw of solar power in 2015, which is equal to the combined capacity addition in the previous four years.

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