Govt may announce incentives for solar projects in Budget

The govt has set an ambitious target to raise the solar power generation capacity by five times to 1,00,000 Mw by 2022

The government is working out a package of incentives for solar power plants having generation capacity of 3,000 Mw or more and an announcement pertaining to this is likely to be made in the forthcoming Budget on February 29.

An inter-ministerial committee headed by the Department of Industrial Policy and Promotion Secretary would soon finalise the report and submit to the Prime Minister's Office for necessary action, according to an official.

According to the draft proposal, the committee has proposed both fiscal and non-fiscal incentives to push mega solar power projects in the country.

It may include a complete eco-system for solar projects such as contours of power purchase agreement, grid connection, land to put solar panels and manufacturing of equipment.

The ministries of New and Renewable Energy, Power, Finance, and Commerce and Industry, among others, are involved in the process.

The solar power players would, however, have to set up manufacturing facilities to avail the benefits being worked out by the committee, the official added.

Besides, NTPC could be roped in to evacuate power from the ultra mega solar power plants and state government's would be requested to make land available for the projects.

The government has set an ambitious target to raise the solar power generation capacity by five times to 1,00,000 Mw by 2022, which will entail an investment of around Rs 6 lakh crore. The decision aims to create clean and sustainable energy source in the country.

With this ambitious target, India will become one of the largest green energy producers, surpassing several developed countries.