comparative study of shp in various states upto 2010

CONTENTS

Page No

Glossary & Abbreviations 1

Combined Summary of State Government Policies for Development of Power throughRenewable Energy Sources 29

(a) Small Hydro Power Plants 31

(b) Wind Electric Generators 44

(c) Solar Generation Plants 53

(d) Biomass/ Bagasse Power Projects 64

Summary of State Government Policies for Development of Power through RenewableEnergy Sources – Order-wise 77

ANDHRA PRADESH

(i) New Wind Power Policy Dated: 11-04-2008 and Amendment Dated: 09-09-2008 79

(ii) Guidelines for establishment of Mini Hydel Power Projects along Vagus and Streams –Order Dated: 11-07-2007 81

ARUNACHAL PRADESH

Small Hydro Power Policy- 2007 Dated 24 – 01- 08 & Amendment Dated 13-10- 08 84

ASSAM

Policy for Development of Small Hydropower (SHP) 2007 89

BIHAR

Policy Guidelines for Developing Non-Conventional Energy Sources 93

CHHATTISGARH

(i) Policy Directives on Incentives to Units Generating Power from Non-ConventionalEnergy Sources. 95

(ii) Policy Directives on Allotments of Sites and Incentives to Small Hydel Projects upto 25 MW. 97

(iii) Wind Energy Policy 99

GUJARAT

(i) Incentive Scheme for Bagasse Based Co-generation 101

(ii) Solar Power Policy – 2009 102

(iii) Wind Power Policy-2007 and Wind Power Policy (First Amendment) -2007 104

HARYANA

Policy for Promoting Generation of Electricity through Renewable Energy Sources 106

HIMACHAL PRADESH

(i) Small Hydro Power Policy – 2006 and Amendments (up to 5.0 MW) 109

(ii) Hydro Power Policy – 2006 and Amendments (above 5 MW ) 116

JAMMU & KASHMIR

Policy for the Development of Small Hydro Power Dated: 09-10-2003 122

KARNATAKA

Karnataka Renewable Energy Policy 2009-14 125

KERALA

(i) Renewable Energy Policy 129

(ii) Guidelines for Development of Wind Farms in Private Land 131

(iii) Guideline for the development of Hydel Scheme by Private Sector – Captive PowerProjects 135

(iv) Guideline for the Development of Hydel Scheme by Private Sector – on BOOTbasis by IPP 138

MADHYA PRADESH

(i) Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources 141

(ii) Incentive Policy for the Development of Small Hydro Power Projects in MadhyaPradesh, 2006 144

MAHARASHTRA

(i) New Policy for Power Generation from Non - Conventional Source of Energy-2008 152

(ii) State Hydel Policy for Development of Small Hydro Power Projects 155

MANIPUR

Policy on Renewable Sources for Promotion of Generation Additional Power through Non-Conventional Energy Sources 160

MEGHALAYA

Policy for Promoting Generation of Power through Non-conventional Energy Source 162

MIZORAM

Power Policy for Power through Non-Conventional Energy Sources 164

ORISSA

Policy Guidelines on Power Generation from Non-Conventional Energy Sources 166

PUNJAB

New and Renewable Source of Energy (NRSE) Policy- 2006) 169

RAJASTHAN

(i) Policy for Promoting Generation of Electricity through Non-Conventional Energy Sources -2004 and Amendments 172

(ii) Policy for Promotion of Electricity Generation from Wind, 2003 179

(iii) Policy for Promoting Generation of Electricity from Biomass, 2010 182

TAMIL NADU

Wind Energy 188

TRIPURA

Draft Policy for Promoting Generation of Electricity through New & Renewable Energy Sources 190

UTTARAKHAND

(i) Policy for Promoting Generation of Electricity through Renewable Energy Sources withPrivate Sector & Community Participation 194

(ii) Policy on Hydro Power Development by Private Sector (up to 25 MW) 197

UTTAR PRADESH

Policy Guidelines for Development of Small Hydro Power Projects up to 25 MW Capacity in UP 200

WEST BENGAL

Policy on Mini/ Micro Hydro Electric Power Station up to 3 MW 202

GLOSSARY & ABBREVIATIONS

GLOSSARY & ABBREVIATIONS

CONTANING DEFINITIONS & EXPANSION OF ABBREVIATIONS

ABT Availability Based Tariff

Act / EA Electricity Act -2003 (EA- 2003)

AFC Annual Fixed Charge/ Annual Fixed Cost

Area of Supply The Area within which a Distribution Licensee is Authorized to SupplyElectricity

ALDC Area Load Dispatch Centre

AMC Annual Maintenance Contract

ATE / AT Appellate Tribunal for Electricity

Appropriate Commission Means Central Regulatory Commission as per sub-section (I) ofsection 76 of Act or State Regulatory Commission as per section 82of the Act

ARR Annual Revenue Requirement

Banking of Power It is the process under which a generating plant supply power to thegrid not with the intention of selling it to either a third party or to alicensee but with the intention of exercising his eligibility to draw backthis power from the grid

Barrage A diversion structure where heading up of water is effected by gates.

Bio-Gas Plant Power Plant Generating Electricity through Anaerobic Digestion ofWet biomass into Fuel

Bio Mass Wastes produced during agricultural and forestry operation energyplantation e.g. Husks, shells.

Bill Meter ABT compatible import and export meter on the basis of which energybills shall be raised by the generating plant

Billing Month Period between two successive meter reading dates

BOO Build, Own and Operate

BOOT Build - Own - Operate - Transfer

BOT Build, Own and Transfer

BSC Balancing and Settlement Code

CAGR Compounded Annual Growth Rate

Canal Fall A structure designed to secure lowering of the water surface in acanal over a short distance and safe dissipation of the excess hydraulicenergy.

Captive User End user of the Electricity Generated in a Captive Generating Plant

CBG Competitive Bidding Guidelines

CBR Conduct of Business Regulations

CD Contract Demand

CDM Clean Development Mechanism

4 Compendium of State Government Policies on Renewable Energy Sector in India

CEA Central Electricity Authority

CEO Chief Executive Officer

CERC Central Electricity Regulatory Commission

CER Certified Emission Reduction

CFA Central Finance Assistance

Check Meter ABT compatible import and export meter for performing a check onthe accuracy of the bill meter

Classification of SHP • Micro Projects - upto 100 kW

• Mini Projects - Above 100 kW and upto 5 MW

• Small Projects - Above 5 MW and upto 25 MW

COD Commercial Operation Date

COG Cost of Generation

COS Cost of Supply

Co-generation The process in which more than one form of energy (such as steamand electricity) are produced in a sequential manner.

Conventional Hydro Power Hydro Power Projects above 25 MWProjects

CPI Consumer Price Index

CPPs Captive Power Plants

CPSU Central Power Sector Units

CSP Concentrated Solar Power

CSR Corporate Social Responsibility

CTU Central Transmission Utility

CUF Capacity Utilization Factor

C- WET Centre for Wind Energy Technology

Date of Commissioning Date on which supply of energy is commercially commenced by thegenerating plant

DER Debt-Equity Ratio

Developer Entity which develops the projects

Distribution Licensee A licensee authorized to operate and maintain a distribution systemfor supply of electricity to the consumers in his area of supply

Distribution System The portion of an electric system that is dedicated to delivering electricenergy to end users.

DPR Detailed Project Report

DISCOM Distribution Company

DSI Detailed Survey Investigations

EAR Energy Audit Report

5Compendium of State Government Policies on Renewable Energy Sector in India

EBA Energy Banking Agreement

ED Electricity Duty

Energy Account Month Period from the date of meter reading in previous month to date ofmeter reading in following month

EHV Extra High Voltage

Energy Consumption Useful energy input that is supplied by the fuel ( normally bagasse orother such biomass fuel)

EMD Earnest Money Deposit

EPC contract Engineering, Procurement and Construction Contract

EPA Energy Purchase Agreement

EOI Expression of Interest

EWA Energy Wheeling Agreement

Export Meter Bill meter installed at the grid substation

FIs Financial Institutions

Firm Power Quantum of Energy which a supplier is obliged to delivered asscheduled in the given period. The technologies which can supplypower on firm basis e.g. Bio Mass, Bagasse etc.

Financial Year Year starting on 1st April of Calendar year and ending on 31st Marchof next calendar year.

FOR Forum of Regulators

FY Financial Year

GBI Generation Based Incentive

Generator A machine that converts mechanical energy into electrical energy.

GFA Gross Fixed Asset(s)

GHG Green House Gas

GOA Government of Assam

GOI Government of India

GOJK Government of Jammu & Kashmir

Grid Means high voltage backbone system of interconnecting transmissionlines, substations and generating plants

Grid Code Means the grid code specified by CERC/SERC

Grid Mode Power Projects Injecting Power in to the Grid

Grid Quality Power Power maintaining reliability & stability of Power supply as Grid supply

Hybrid Solar Thermal Power Means the solar thermal power plant that uses other forms of energy

Plant Input sources along with solar thermal energy for electricity generation,and wherein not less than 75% of electricity is generated from solarenergy component.

HT High Tension


Hz Grid Frequency

IA Implementation Agreement

IC Installed Capacity

I C B International Competitive Bidding

IDC Interest During Construction

IEGC Indian Electricity Grid Code

Import Meter Bill Meter Installed at the Grid Substation of STU

Inter-connection Point Interface point of renewable energy generating facility with thetransmission system or distribution system, as the case may be.

Inter-connection Facilities Facilities which include without limitation switching equipment, control,protection and metering devices etc.

Infirm Power Means energy supplied over and above the firm power, which isinterruptible on a very short notice.

Internal Rate of Return (IRR) The internal rate of return is the discount rate at which the sum ofperiodic benefits (revenues minus operating and maintenance costs)is equal to the present value of the initial investment.

Investor A body interested in investing in a project

IPPs Independent Power Producers

IREDA Indian Renewable Energy Development Agency

IRR Internal Rate of Return

Isolation Mode Project without Grid Connection

IWC Interest on Working Capital

IWPA Indian Wind Power Association

K Cal. Kilo Calories

Kg Kilo Gram

KWh Kilo Watt-hour

kV Kilo Volt

KVA Kilo Volt- Ampere

KVARH Reactive power in Kilo Volt Ampere.

LoA Letter of Allotment

LoI Letter of Intent

Licensee Person granted licensee under section 14 of the Act.

LC Letter of Credit

LDC Load Dispatch Centre

LCT Letter of Comfort on Transmission

LoP Letter of Permission

LRMC Long Run Marginal Cost


LTPLR Long Term Prime Lending Rate

MAT Minimum Alternate Tax

MCR Maximum Continuous Rating

MMC Monthly Minimum Charges

MNRE Ministry of New and Renewable Energy

MkCal Million Kilo Calories

MPPs Merchant Power Producers

MoA Memorandum of Agreement

MOU Memorandum of Understanding

MOP Ministry of Power

MSW Municipal Solid Waste

MW Mega Watt

MU Million Unit

MYT Multi Year Tariff

NEP National Electricity Policy

NGHR Normative Gross Heat Rate

NGO Non-Government Organization

Non-Firm Power The power from Renewable Sources which can not be schedulede.g. Wind and Small Hydro. Non Firm Power is dependent on naturalphenomenon like sun, cloud, wind etc., that cannot be predicted

NO Network Operator

NOC No Objection Certificate

NPV Net Present Value

OA Open Access

Open Access Non-discriminatory provision for use of transmission lines/distributionsystem / associated facilities with such lines or system by any licensee/consumer/ person engaged in generation in accordance with theregulations specified by the appropriate commission

O&M Operation and Maintenance

PAT Profit after Tax

PEA Power Evacuation Agreement

PF Power Factor

PFR Pre-feasibility Report

PLR Primary Lending Rate

PPA/PSA Power Purchase Agreement/ Power Supply Agreement

Project Means a Generating Station or the Evacuation System upto Inter-Connection Point.


PT Potential Transformer

PV Photovoltaic

Quantum of Purchase Percentage share of purchase of electricity from renewable sourcesas specified in the regulations.

Rate of Return The rate of return on investment is the ratio of annual benefits (net ofannual cost) as a percentage of the original

RES Renewable Energy Sources

REC Renewable Energy Certificate

Reactive Power The portion of power that is produced by load inductances orcapacitances.

Renewable Sources Sources of energy used to produce electricity such as Small Hydro,Wind, Solar, Biomass, Bagasse based co-generation, Urban/MunicipalWaste.

Renewable Energy/ Power Means the grid quality energy/power generated from renewableenergy sources

Renewable Energy Power Plants Power plants other than the conventional power plants generatinggrid quality electricity from renewable energy sources

Renewable Energy Sources Renewable sources such as Small Hydro, Wind, Solar including itsintegration with Combined Cycle, Biomass, Bio fuel cogeneration,urban/municipal waste and other such sources as approved by theMNRE

REO Renewable Energy Obligation

RLDC Regional Load Dispatch Centre

ROE Return on Equity

ROR Run of the River

Run-of- river Plant Plant without storage reservoirs where water is used at the rate atwhich it "runs" in the river.

RPS Renewable Purchase Specification

Royalty on Water Royalty paid by SHP to the Government on the Water used in theProject

RPO Renewable Purchase Obligation

Rs./kWh Rupees per Kilo Watt hour

Rs./ M k Cal. Rupees per Million Kilo Calories

R&M Repair and Maintenance

RPS Renewable Portfolio Standard

SBD Standard Bidding Document

Scheduled Generation Scheduled of Generation in MW or MU ex-bus given by the StateLoad Dispatch Centre for any period.

SC & TEC System Coordination and Techno-Economic Clearance


Self Identified Project Developers to Identify Projects

SERC State Electricity Regulation Commission

SFC Specific Fuel Consumption

Small Aero generator It is a stand alone generator which can be used to produce electricity(Mini-wind mills) for captive purposes. Can be installed where wind speed is more

than 15 kmph. It consists of smaller capacity in wind electric generator,(up to 30 kW) a tower, a battery bank with an inverter and electroniccontrol system.

SHP Small Hydro Plant (Electricity Generating Station)

Small Hydro Plant Hydro Power Station with an installed capacity up-to and including25 MW

SLDC State Load Dispatch Centre

SLM Straight - Line Method

SP Storage Projects

SSLDC Sub- State Load Dispatch Centre

SPG Solar Power Generator

SPV Special Purpose Vehicle

Solar PV Power The solar photo voltaic (PV) power project that uses sunlight for directconversion into electricity through photo voltaic technology.

Solar Thermal Power (ST) The solar thermal power project that uses sunlight for direct conversioninto electricity through concentrated solar power technology basedon either line focus or pointy focus principle. The direct sun light isconcentrated several times to reach higher energy densities and thushigher temperatures whereby the heat generated is used to operatea conventional cycle to generated electricity.

Special Purpose Vehicle Legal entity owning, operating and maintaining a generating stationwith no other business or activity to be engaged in by the legal entity

State Identified Projects State or Sponsored Agencies to identify projects

STC State Technical Committee

STU State Transmission Utility

Substation Facility equipment that switches, changes, or regulates electricvoltage.

Substation capacity The substation capacities are given in kVA (kilovolt-amperes).

Supply In relation to Electricity, means the sale of Electricity to licensee orConsumer

Switchyard Area holding power transformers and related switchgear, circuitbreakers etc.

Tail race The channel located between a hydroelectric powerhouse and theriver into which the water is discharged after passing through theturbines.

T&D Transmission and Distribution


TEC Tecno-Economic-Clearance

TEFR Techno-Economic Feasibility Report

TL Transformation Loss

TOD Time of Day

TP Tariff Policy

TPC Third Party Consumers

TPH Tonnes Per Hour

TPS Thermal Power Station

Transmission Charges The charges payable by renewable energy sources for the use oftransmission system

Transmission Licensee A Licensee authorized to established or operate transmission lines

Trading Purchase of electricity for resale there of

UNFCCC United Nation's Framework Convention for Climate Change

UI Unscheduled Interchange

Useful thermal output Useful heat (steam) that is provided to the process by the cogenerationfacility

VAT Value Added Tax

WEA Wind Energy Association

WEG Wind Energy Generator. A machine/device, which converts kineticenergy of wind into electrical energy with proven technology

Wheeling Charges Operation whereby distribution system and associated facilities oftransmission licensee /distribution licensee are used by anotherperson on payment basis to be determined under section 62 ofElectricity Act 2003

Wind Farm Cluster of WEGs elected by a single developer and generatingelectricity from wind

WPD Wind Power Developer/ Wind Power Density

WPI Wholesale Price Index

WTGs Wind Turbine Generators

Year Means a financial year

COMBINED SUMMARYOF STATE POLICIES

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Sl. Name of State/ Andhra PradeshNo Description

1 Order Date G.O.Ms No. 165 dated11.07.2007- for

Mini Hydel Projects

2 Eligible Producer

3 Land Allotment

4 Operative Period

5 Sale of Powerand Tariff

6 Wheeling

7 Banking

COMBINED SUMMARY OF STATE POLICIES FOR SMALL HYDRO POWER PROJECTS

Assam

Notification No.PEL. 196/2002/199 dated March 2007

Land to be allotted / sold atpremium / lease, case wise andshall form part of bid document.

Thirty five years from the dateof award

ASEB/Successor Co/HTconsumer up to 5 MW/localgrid/any consumer outside theState

Wheeling charges as decided byAERC

Banking facility within fixedperiod of 6 months

Bihar(From RE Policy of State)

Any Industry, Institution,Private Agency, PartnershipFirm, Consortia, Panchayat,Co-Operative or RegisteredSociety

Government land, if availableon lease, otherwise privatepurchase.

5 Years with immediate effect

State grid/ BSEB/third party/HTConsumer of BSEB/Pvt.Consumer

On BSEB T&D system as per agreed terms with Developer

Arunachal Pradesh

No: PWRS/HPD/W- 1305/2005/dated 24th January, 2008 andNo: PWRS/W-1305/2005/ Pt-Idated 13th Oct. 08

• Local entrepreneurs withsole proprietorship /NGOs/Co-operative Societies / JVconcerns

• Consortium with one partnerto be Arunachalee.

• Any registered companyfrom outside the State withdifferentiation in free power,upfront money andprocessing fee with that oflocal entrepreneurs

• Land shall be acquired andleased to the developeragainst payment of landrevenue as per relevant tariffof the State Government(SG).

• Lease till BOOT period.

50 years

To SG at 10 paise lower tariff asper CERC/ SERC or for saleoutside the State

Wheeling rate as determined bythe SERC/State.

Not allowed without priorpermission of SG

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8 Water Royalty Percentage of energygenerated

9 Power Evacuation Evacuation facilities atand Grid Interfacing developer’s cost

10 Incentives andGeneral

Developer to bear the cost oftransmission network from theproject to the point of sale

• SG to allow 50% share ofCarbon Credit under CDM.

• Indigenous tribal Developerexempted from supplyingfree power to the SG forprojects up to 5 MWcapacity.

• For project up to 5 MW – Noroyalty if sold in Assam.

• Above 5 MW @ Rs.0.25 perunit.

• For power project onirrigation canal fall/ barrages/ dams, a water cess @ Rs.0.05 /kWh / year

• ASEB/ GENCO to provideevacuation facilities atcharges to be mutuallyagreed.

• Cost of transmission lines inexcess of 5 km to be borneby the IPPs/user society andASEB/ GENCO on mutuallyagreed terms andconditions

No entry tax on powergeneration & transmissionequipments for projects.

Developer to give priceequivalent to 10% of the powergenerated to the SG in lieu ofthe water rights/ cess.

Developer to bear cost forevacuation of power to thenearest State/BSEB grid/sub-station.

• Incentives/concessions as applicable to newIndustrial units/backwardareas.

• Concessions to industrialunits in backward areasapplicable to the projectsin backward areas.

Sl. Name of State/ Andhra Pradesh Arunachal Pradesh Assam BiharNo Description (From RE policy of State)

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Sl. Name of State/ ChhattisgarhNo Description

1 Order Date Notification No. 131/DoE/2002dated 29.08.2002

2 Eligible Producer • Generally Private investors.

• CREDA/CSEB may alsoinstall.

3 Land Allotment Award of land by State Govt.

4 Operative Period Up to 28.08.2010

5 Sale of Power CSEB to buy surplus power @and Tariff Rs. 2.25 per unit after captive

consumption or sale to thirdparty

6 Wheeling Wheeling charges to be fixedby CSEB.

Haryana(From RE policy of State)

GoH, Renewable Energy Deptt.Dated 23-11-2005

Companies, Cooperatives,Partnerships, Local SelfGovernments, State NodalAgency, Boards & Corporations,Power utilities, Privatedevelopers, Public – PrivatePartnership Companies,Consortia, Registered Societies,NGOs, individuals etc.

State Govt. to acquire land ifnecessary at the cost of IPP.

Date of notification till a newpolicy is notified

• To Licensee/Utilities atHERC tariff

• Surplus power from captivepower/Co-generation toutilities at negotiated price.

Licensee / Utilities to transmitpower on its grid, and make itavailable to the producer forcaptive use or for third Party salewithin the State as per approvedtariff / surcharge, notified byHERC

Himachal PradeshUp to 5 MW

• SHP up to 2 MW reservedfor Himachalis / andCooperative Societiescomprising Himachalis.

• Up to 5 MW, preference toHimachalis.

• Any Private Investor / PSU/Co-operative Societiescomprising Himachalis

• Govt. to acquire land forpermanent structures

• Land for other purposes onlease basis on Govt.approved rates.

40 years after which the Projectto revert to the StateGovernment free of cost

• HPSEB to purchase power@ Rs. 2.50 per unit

• Third party sale within theState allowed where cost ofgeneration is above Rs. 2.50per unit

• For captive use at a fee of2% (including losses)

• For sale / captive use ofpower out side state 1% ofenergy received (includinglosses)

Himachal PradeshAbove 5 MW

• Any Private Investor /Co-operative Societycomprising of the bonafideHimachalis.

• Not more than 2 projects toIPP

• Developer free to disposeoff merchant power

• Govt. of HP/HPSEB tohave right of first refusal onsale.

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7 Banking

8 Water Royalty Payable to SG at prescribedrates

9 Power Evacuation • Upto 2 km by Developerand Grid Interfacing • After 2 Km to be shared

equally between developerand CSEB (upto 5 km.)

• Laying of the transmissionlines by CSEB.

10 Incentives and • No electricity duty payableGeneral for 5 years

• CREDA may cancel theallotment of site in case ofnon execution of Projectwithin time limit set by it

• To be allowed by HVPNL/DHBVN/ UHBVN/ for aperiod of one year free ofcost.

• If the banked energy is notutilized within 12 months nocharges shall be paid inlieuof this power.

• Allowed to use the water forpower generation throughmicro/ mini/ small hydelplants.

• No royalty on water used forpower generation for non-consumptive use.

Cost of power evacuation up toHVPN / UHBVN, DHBVNnetwork to be borne by theDeveloper.

All new projects to be treated as“Industry” in terms of IndustrialPolicy, 2005 and all theincentives available to newprojects to be applicable as perthis Policy.

Allowed

No royalty up to 5 MW for 12years, 12% for next 18 yearsand beyond at 18% for salewithin the state

Cost to be borne by Developer

• As per MNRE/HP Govt.

For new projects

• Upfront premium exemptedfor projects up to 2 MW

• Above 2 MW and up to 5 MW- Rs.45,000/- per MW withceiling of Rs.75,000/-

Free power @ 12% for 12years, 18% for next 18 yearsand thereafter 30%

• As per MNRE/HP Govt.

• Incentives for earlycommissioning

Sl. Name of State/ Chhattisgarh Haryana Himachal Pradesh Himachal PradeshNo Description (From RE policy of State) Up To 5 MW Above 5 MW

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Sl. Name of State/ J&KNo Description

1 Order Date Or. No. 211-PDD of 2003dated. 09.10.2003

2 Eligible Producer Independent Power Producer(IPP) to bid for identifiedprojects.

3 Land Allotment • Private land at their cost

• Govt. land at lease for 40Yrs

4 Operative Period Forty years from date of award& then revert back to GOJK /extension on mutually agreedterms

5 Sale of Power and HT consumer/Local grids/Tariff (J&KPDD) main grid/Consumer

outside

6 Wheeling No wheeling charges for saleto J&KPDD /Local Grid

7 Banking Allowed for 2 months

8 Water Royalty • Exempted for first 15 years

• After 15 years, 12% of netenergy wheeled minuswheeling charges.

Karnataka(From RE policy of State)

No. EN 354 NCE 2008 Bangalore,Dated 19th January, 2010

• Government to provide landto Karnataka RenewableEnergy Development Limitedfor sublease to Developer

• After 30 years the projectstands transferred toGovernment

• Farmers to be equitypartners of not less than 5%of gross energy generated

Up to 2014

State Government is committedto procure RE power & reservesfirst right of refusal of Purchaseof Power

5% wheeling charges

Allowed for energy banked withKPTCL/Distribution licensee

To be determined by theGovernment

Kerala(Captive Plant)

G.O. (MS) No.5/2006/PD dated 17-03-2006

• Who intends to set CPP for itsown consumption within the State

• Preference to HT/EHTindustrial consumers

BOOT period -30 years fromscheduled date of allotment

• KSEB have first right topurchase excess power overthe captive consumption at atariff approved by KSERC

• Otherwise CPP is allowed tosell to third party

Surcharge , transmission &wheeling charges as decided byKSREC

Kerala(IPP)

G.O. (MS) No.5/2006/PD dated17-03-2006

Company or body corporate orassociation or body ofindividual or artificial judicialperson

BOOT period -30 years fromscheduled date of allotment

• KSEB to purchase energygenerated by IPP at the bidrates.

• If KSEB does notpurchase power, Commis-sion to permit open access

No water cess

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9 Power Evacuation IPPs to lay lines forand Grid Interfacing connectivity to the nearest grid

substation normally at 132 kVor 33 kV

10 Incentives and • Micro projects exemptedGeneral from Income Tax

• No entry tax on powergeneration, transmissionequipment and buildingmaterial for projects.

• SHP to be treated as anindustry and incentivesavailable accordingly

KPTCL to provide transmissionlines and developers to bearthe cost of lines from the projectsite to the sub-stations as pergrid norms

• Incentives allowed byMNRE/Government of Indiato be passed on to thedeveloper through KREDL

• Generation of electricity fromRE sources to be treated asindustry and incentivesavailable to industrial unitsextended to RE projects.

• Developer to construct &maintain the transmissionfacilities up to KSEB/ STUgrid at its own cost

• Developer to bear the costof any modification/ up-gradation of sub station ofKSEB/ STU which drawspower from the project

• Developer to pay all taxes,duties and other levies

• Project to be madeoperational within 36 monthsfrom the date of financialclosure , failure to result incancellation of allotment ofsite and forfeiture of upfrontpremium & CPP to paypenalty

• Project not transferableother than take over by Govt.

• If developer leaves projectincomplete, Governmentreserves the right to takeover the project with outcompensation

• On completion of BOOTperiod, the entire projectcomponents includingtransmission system tostand transferred to Govt. inproper working condition,free of cost & encumbrances

• Any tail race scheme damtoe and other regulatedflows are open only toKSEB/ successor entities.

• Developer to construct &maintain the transmissionfacilities up to KSEB/ STUgrid at its own cost

• Modification/ up- gradationof sub station of KSEB tobe at the cost of developer.

• Installed capacity of singleHydro Electric Project to belimited to 25 MW

• Allotment of project to bebased on two stage bidding.Bidder to quote Premiumper MW payable upfront

• Criterion for selection to bethe lowest levelised tariffrate for sale of electricity forthe entire BOOT period.

• Developer to pay all taxes,duties and other levies

• Project to be madeoperational within 36months from the date offinancial closure , failure toresult in cancellation ofallotment of site andforfeiture of upfrontpremium & IPP to payliquidity damages as perImplementation agreement

• During implementationtransfer of ownershippermitted, subject toapproval of Government.

• On completion of BOOTperiod, the entire projectcomponents includingtransmission system to standtransferred to Govt. in properworking condition free of cost& encumbrances.

Sl. Name of State/ J&K Karnataka Kerala KeralaNo Description (From RE policy of State) (Captive Plant) (IPP)

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Sl. Name of State/ Madhya PradeshNo Description

1 Order Date

2 Eligible Producer

3 Land Allotment • Govt. land on lease

• Premium and lease rent @of Rs.1 per year

• Private land to be acquiredby Govt. at developers’ cost

• Forest land as per ForestAct

4 Operative Period Date of notification till revised

5 Sale of Power and • 100% IPPTariff • Surplus Power of CPP to

any consumer/ Distributioncompanies / Power TradingCo. (PTC)

Maharashtra

No. PVT-1204/(160/2004)/ H PDated: 15th September 2005

Govt. land on lease rent @ Rs.1/kW of installed capacity/year,other wise private land atdeveloper cost

Date of publication till revised

• To any consumer ofMaharashtra / distributionlicensee or power tradingcompany.

• Maharashtra DISCOM tohave first right of refusal.

Manipur(From RE policy of State)

No.1/1/2005- S& (Misc) dated12-09-2006

• All Power producersgenerating Grid-gradeelectricity with installedcapacity not exceeding 25MW

• SHP (up to 25 MW) to beinstalled by MANIREDAeither by directimplementation or throughproducers

• Producers generatingelectricity for captiveconsumption

• Companies, Co-operative,partnerships, VillageDevelopment Board/ VillageAuthorities, individuals etc.

Date of publication til lsuperseded or modified

• Minimum Rs.2.25/- per unitto be increased every yearfor 10 operational years.

• Thereafter the rate ofincrease to be mutuallysettled between PowerDeptt. and developer.

Meghalaya(From RE policy of State)

• Power producingentrepreneur. Companies,cooperative, partnershipindividuals etc.

• Power producers withcapacity less than 10 kWand more than 25 MW noteligible.

• Power producers forcaptive consumption

By DISCOMS at SERC tariff.

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of State G

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olicies on Renew

able Energy S

ector in India

• State Distribution Co/SPTC to have first right ofrefusal for purchase ofPower

6 Wheeling • Wheeling and transmissioncharges for sale of powerto Third Party Consumers /Distribution Licensee /Power Trading Company

• Subsidy @ 4% towardswheeling charges withinthe State

7 Banking Allowed 100% of energy everyfinancial year on payment of2% of banked energy.

8 Water Royalty

9 Power Evacuation Cost to be borne by Developerand Grid Interfacing

10 Incentives and • No electricity cessGeneral • SHPs to be treated as

Industry and eligible forincentives

• Power for captive use orthird party sale exemptedfrom Electricity Duty

As applicable

Charges as admissible.

Developer to bear the entirecost.

• Infrastructural facilities tobe provided on the linesof industrial estates.

• Consumption of electricityfor captive use or sale tothird party exempted fromelectricity duty for 5 years.

• PPA for 20 years unlessDeveloper wants shorterperiod

Wheeling charges @ 2% of theenergy fed to the grid.

Allowed up to 1 year

Not exceeding 10% of the tarifffor electricity consumers

• Developer to bear the costof Evacuation facilities andGrid interfacing includingmaintenance to nearest HTline

• Power Department toundertake augmentation ofthe sub-station capacity at33/11 kV or highertransmission line levels atits cost to receive the powergenerated.

• Exemption from electricityduty for 5 years from CODfor captive use or sale to athird party.

• Producers to be treated asindustrial units and similarincentives available tothem

Wheeling and transmissionlosses as per MERC

As per MERC

At the rate of Rs.0.05 per unitof energy generated quarterlyto be escalated by 5%(compounded) every year.

Developer to bear the cost oftransmission lines todestination of his use.

• CPPs exempted fromElectricity Duty on selfconsumption for first fiveyears

• CPPs exempted from taxon Sale of Electricity forconsumption inMaharashtra.

Sl. Name of State/ Madhya Pradesh Maharashtra Manipur MeghalayaNo Description (From RE policy of State) (From RE policy of State)

39C

ompendium

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olicies on Renew

able Energy S

ector in India

• Carbon Credit/any suchincentive

• No entry tax for 5 years onplant and machinery

• 50% incentive of freepower to developers forearly COD

• IPP’s free to change optionto CPP & vice versa withapproval of WRD / NVDA

• Transfer of Project allowedwith approval

• Incentives for earlycommissioning

• IPPs / CPPs free to changetheir entity

• Transfer of allotment withapproval of SG

• Concession given toIndustrial units in backwardareas to be provided

• Infrastructural facilities tobe provided on the lines toother industrial units if plantis set up in industrial areadeveloped by State Govt.

• GoI Incentives for REpromotion

• Exemption of tax on REdevices and spare parts.

• Sale Tax exempted

• Allowed to use water forpower generation,wherever possible.

• Eligible for Sales Tax/ VATdeferment/ remission.

Sl. Name of State/ Madhya Pradesh Maharashtra Manipur MeghalayaNo Description (From RE policy of State) (From RE policy of State)

40C

ompendium

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overnment P

olicies on Renew

able Energy S

ector in India


Sl. Name of State/ MizoramNo Description (From RE policy of State)

1 Order Date

2 Eligible Producer • Companies, cooperative,partnerships, individuals,charitable societies,Non-Governmental Organi-zations etc.

• Government agencies andthe producers. (JV)

• Power producers forcaptive consumption.

3 Land Allotment

4 Operative Period From date of publication in theofficial gazette till superseededor modified.

5 Sale of Power and SG to purchase at a minimumTariff rate of Rs. 3.50/unit for 2002-

03 with escalation of 5% everyyear for 10 years.

6 Wheeling Wheeling charges of 2% of theenergy supplied to the grid.

Orissa(From RE policy of State)

Resolution No. 6971/ST,Bhubaneswar, ST-IV-RE-13/2005, dated 3-12-2005

Any Public Sector, PrivateEntrepreneur, RegisteredNGOs, Cooperatives,Consortia etc.

10 years

To the bulk suppliers/distribution licensee

• Allowed, subject to paymentof transmission/ distributionand wheeling charges bothfor captive use and saleout side the State asapproved by OERC

Punjab(From RE policy of State)

No.10/106/2006-STE(1)5390dated 24th Nov, 2006.

• Government land at leaserent of Rs.1/sq. meter /annum for 33 years.

• Agricultural land withoutconversion charges

Five years w.e.f. 8thDecember, 2006.

• Mini/ Micro Hydel projectRs.3.49 per unit (Base year2006-07) with five annualescalations @ 3% up to2011-2012.

• Thereafter PSEB/HT tariffwhichever is higher.

2% of energy fed to the grid

Tripura(From RE policy of State)

• Companies, cooperative,partnerships, individuals,charitable societies,N o n - G o v e r n m e n t a lOrganizations etc.

• Government agenciesand the producers (JV)

• Power producers forcaptive consumption.

• Government Land onlease.

• Private Land on payment

• Forest Land as per theForest Conservation Act

Date of notification til lsuperseded or modified

• Department / TSECL topurchase electricity atTERC tariff

• Third party sale permitted.

• PPA for a minimum periodof 10 years.

• Department to consider PPAfor shorter period on merit.

2% of the energy supplied tothe grid.

41C

ompendium

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overnment P

olicies on Renew

able Energy S

ector in India

Banked for one Financialyear.

• No royalty for initial periodof 7 years.

• Exempted for miniprojects.

• Developers to bear theentire cost to the nearestHT lines.

• Cost of augmentation ofsub-station capacity at 33/11 kV or higher andtransmission lines to beborne by the Department

• Producers to be treatedan Industry and similarincentives available to them.

• Incentives provided byCentral Government : asper "North East Industrialand Incentive PromotionPolicy (NEIIP), 2007.

• Renewable Energyequipment and materialsexempted from Statesales tax / VAT,alternately reimbursed.

• 100% CDM benefit todevelopers in first year,10% to beneficiaries in2nd year to be increasedby 10% every year upto50% and then sharedequally between develo-per and beneficiary.

Allowed.

For use of river/ canal water,cess @ one paise per unit

• PEDA to assist in carboncredits.

• Exemption from electricityduty.

• VAT @ 4% onmanufacturing and sale ofNRSE devise system andequipment/machinery.

• Octroi on energygeneration and equipmentmachinery exempted.

• No transmission chargesfor CPP or NRSE main-tenance for 5 years.

• Allowed on annual basis.

• Banking charges - 2.5% ofenergy despatched.

Grid interfacing with thegenerating units to beconstructed by the developer athis own cost

• Exempted from electricityduty

7 Banking Allowed up to one year

8 Water Royalty No royalty

9 Power Evacuation • Developers to bear theand Grid Interfacing entire cost to the nearest

HT lines.


10 Incentives and • Consumption of electricityGeneral for captive use/sale to third

party exempted fromelectricity duty.

• Developers to be treated asindustrial units forincentives.

• Concession given to theindustrial unit in thebackward areas to beprovided to Developers.

• Renewable Energyequipment and materialsexempted from State salestax.

Sl. Name of State/ Mizoram Orissa Punjab TripuraNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

42C

ompendium

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overnment P

olicies on Renew

able Energy S

ector in India


Sl. Name of State/ Uttar PradeshNo Description

1 Order Date

2 Eligible Producer

3 Land Allotment • No acquisition fee and stamp dutyfor land acquired through StateGovt.

• Govt. land for 30 years lease at fixedrate of Rs.100 per acre

4 Operative Period

5 Sale of Power and Tariff

6 Wheeling

7 Banking

8 Water Royalty For use of river/canal water, waterroyalty to be charged @ 5 paisa/unitsold

9 Power Evacuation • Developers to provideand Grid Interfacing evacuation facilities from project to

grid sub-station

• UPPCL/DISCOMs to bear 50% costof transmission system

Uttarakhand

Forty years from date of award

HT consumer/Local rural grids notconnected to UPCL main grid/RuralPower Distribution entities/Outside thestate

UERC to determine the wheelingcharges for third party consumers orsale outside the state

Allowed. Developer to bear thedifference between average pooledprice of banked-in and banked-outenergy

• Exempted first 15 years,

• Beyond 15 years royalty @ 18% toGOU

• Sale to other Parties, 12% of netEnergy wheeled

IPPs to lay lines for connectivity to thenearest grid substation normally at 132kV or 33 kV

West Bengal

HV/EHV Industrial Consumers forcaptive HEP up to 3 MW

No sale of power by the industrialundertaking to any third party.

• Wheeling charges of 30 paise /kWh

• Wheeling of power not allowed tomore than one unit of the sameindustrial undertaking.

Allowed for a period of six monthsbeyond which sale at weightedaverage of the fuel cost of ThermalGenerating station of the utility

Industrial undertaking to lay its owntransmission lines and the associatedsystem up to the nearest grid sub-station of the utility.

43C

ompendium

of State G

overnment P

olicies on Renew

able Energy S

ector in India

10 Incentives and • All necessary facilities forGeneral SHP in private sector

• Power generation exempted fromelectricity duty.

• No entry Tax on Generation,Transmission equipment & BuildingMaterials for project

• Incentives for early commissioning

• Levies, taxes, charges on IPPsapplicable for 10 years

• Penalty in case Plant not madeoperational in time limit

Sl. Name of State/ Uttar Pradesh Uttarakhand West BengalNo Description (From RE policy of State)

44C

ompendium

of State G

overnment P

olicies on Renew

able Energy S

ector in India

Sl. Name of State/ Andhra PradeshNo Description

1 Order Date • G.O.Ms.No.48 dated11.04.2008 andAmendment dated09.09.2008

• G.O.Ms.No.19 dated16.03.1996

2 Eligible Producer • Wind Farm Developers,Wind Energy Generator(WEG) manufacturers,Govt. owned Co. JointVenture Co. and PrivateInvestors.

• Minimum Turbine Capacityof WEGs to be 225 kW

3 Land Allotment • Developer to be allocatedGovt. land to harness up tomaximum 200 MW

• Private land from landowner on their own

4 Operative Period 5 Years from date of Policy

5 Sale of Power and • For captive use , third partyTariff sale or to DISCOMS

• First 10 years from COD -Rs.3.10 / unit

• 11th to 20th year as perAPERC

• Beyond 20th year asmutually agreed

6 Wheeling Concessional wheeling andtransmission charges in kind @5% of energy delivered in to the

COMBINED SUMMARY OF STATE POLICIES FOR WIND POWER PROJECTS

Chhattisgarh

Notification No. 1905/2006dated 7th August , 2006

• Govt. land on lease

• Private land to be acquiredby the Govt. and madeavailable to the party atacquisition cost.

From date of publication in theGazette till revised.

• First to State Government /Agency at the CSERC rate.

• Otherwise to third party.

Gujarat

• G.R. No. EDA-102001-3054-B dated 13th June,2007

• G.R. No. WND-11-2008-2321-B dated 7.1.09

Any company or bodycorporate or association ofbody of individuals, whetherincorporated or not, orartificial juridical person forsetting up Wind TurbineGenerators (WTG), either forcaptive use and /or for sellingof electricity

WTGs may be set up on privateland, or revenue waste land/Gujarat Energy DevelopmentAgency GEDA land if available

20th June, 2007 to 30th June,2012.

• GUVNL/ Distributionlicensee to purchasesurplus power after captiveuse

• Third party sale allowed

• Rs. 3.50 / unit. w. e. f. 1stApril, 2009

To consumption site:

At 66 kV & above:-

Bihar(From RE policy of State)

Any Industry, Institution, PrivateAgency, Partnership Firm,Consortia, Panchayat, Co-Operative Or Registered Society

Government land on lease,otherwise private purchase.

5 Years with immediate effect

State grid/ BSEB/third party/HTConsumer of BSEB/Pvt.Consumer

On BSEB transmission anddistribution system as peragreed terms

45C

ompendium

of State G

overnment P

olicies on Renew

able Energy S

ector in India

• On payment oftransmission chargesincluding losses

Below 66 kV:

• Transmission and wheelinglosses @ 10% of theenergy fed to the grid.

• For only one WTGtransmission charges &transmission and wheelinglosses @ 7% of the energyfed to the grid.

Note: For wheeling to morethan 2 locations 5 paise per uniton energy fed to the grid

At 66 kV up to 100 km by thedeveloper and beyond byGETCO

grid (including T&D losses) forcaptive use or third party sale

7 Banking Not allowed

8 Power Evacuation Developer to bear entire costand Grid Interfacing for interconnection to Grid.

9 Incentives and Developer to share CarbonGeneral Credits with DISCOMS in the

ratio of 90% and 10%

Developer to bear cost forevacuation of power to thenearest State/BSEB grid/sub-station.

Incentives/concessions asapplicable to new Industrialunits/backward areas.

Through CSEB grid on CSERCtariff

Sl. Name of State/ Andhra Pradesh Bihar Chhattisgarh Gujarat No Description (From RE policy of State)

46C

ompendium

of State G

overnment P

olicies on Renew

able Energy S

ector in India


Sl. Name of State/ KarnatakaNo Description (From RE policy of State)

1 Order Date No. EN 354 NCE 2008Bangalore, Dated 19th January,2010

2 Eligible Producer KPTCL for allotment of projectsabove 500 MW

3 Land Allotment • Government land forKarnataka RenewableEnergy Development Limited(KREDL)

• Private land from owners

• Land owner farmers to beequity partners for equity notless than 5% of gross energygenerated

• 10% barren Government landreserved for industrial use toKREDL for RE development

• KREDL to sub-lease land todeveloper for 30 years.

4 Operative Period 5 years up to 2014

5 Sale of Power To ESCOMs in area whereand Tariff the project is located, at KERC

Tariff

6 Wheeling 5% wheeling charges

Kerala

GO (MS) No.7/2007/PD dated11-05-2007 & Amendment GO(Rt.) No. 295/08/PD dated22.11.2008

Any individual, Company, Bodycorporate, Partnership firm,Joint venture- whetherincorporated or not, Artificialjudicial person / Captivegenerating plant owner

To other buyers if KSEB/Successor entities refuse

Madhya Pradesh(From RE policy of State)

Notification dated 17.10. 2006& Amendment dated 12.05.2008and as per MPERC order dated11.06.2004 & 01.03.2006

• Any Industry, Institution orPrivate unit, a Joint Venture

• Public sector units.

• Land @ Rs. 1/- year (tokenpremium) for 30 years or lifeof the Project

• Private land to be acquiredby Govt. & made availableto Developer at acquisitioncost

• Private land includingAgricultural land exemptedfrom Land Ceiling for itsacquisition

• 50% exemption on stampduty on private land.

• Land use permission for sitescertified by MNES/C-WET

5 years

Varying from Rs. 4.03/ kWh in1st year to Rs. 3.36 /kWh in 5thyear

• Wheeling charges as perMPERC

• 4% subsidy on wheelingcharges

Maharashtra(From RE policy of State)

Government Resolution (i)N o . A P A U ( N C E ) - 2 0 0 7 /Pra.Kra.693/ Urja-7 dated 14thOctober 2008 (ii) Amendmentdated 03-08-2009

The barren land meant forindustrial use on lease for 30years.

It shall be binding onDevelopers to sell 100% ofelectricity generated toLicensee or Client in the State.

47C

ompendium

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overnment P

olicies on Renew

able Energy S

ector in India

• Allowed 100%

• MPSEB / Distribution Co. tocharge 2% of Banked poweras banking charges

Cost for Power evacuationfacilities to be borne byDeveloper

• Carbon credit to Investor• Exempted from Entry Tax /

Octroi / VAT.• Developer to pay @ Rs.

50,000/- / MW as nonrefundable processing feealong with application

• One Private party to beallowed to install Windmonitoring mast at 15locations at a time.

• If Private Institution is notable to complete the Windmonitoring & start Projectwithin 18 months time fromthe date of approval, theEnergy Department may allotlocation to another institutionfor transfer of Project use.

• Developer to commissionthe Project in 15 months

• Developers to install thepower evacuation facilitiesincluding modification fromproject site to HV / EHVsubstation includingtransmission lines

• After commissioning,evacuation arrangement tobe transferred to MSETC /MSEDCL with ownershipand maintenance work

• 50% of the approvedexpenses on evacuationarrangement to be reimbur-sed to Developer as subsidyfrom Green Energy Fund

• MSEDCL to pay throughLetter of Credit (LC) to theDeveloper

• Cost of opening of LC to bereimbursed from GreenEnergy Fund (GEF) byMEDA as 100% subsidy

• 100% refund of Octroi Tax/Entry Tax for equipmentsto be made through GEF

• Promoters/ developers/investors who do not wishto obtain facilities -concessions under thispolicy, need not takeinfrastructure clearancefrom the Government

• No Electricity duty for first10 years from COD forcaptive use/third party sale

7 Banking Allowed for energy banked withKPTCL/Distribution licensee

8 Power Evacuation KPCTL to provide transmis-and Grid Interfacing sion lines and developers to

bear the cost of lines from theproject site to the sub-station

9 Incentives and • KREDL to facilitate availingGeneral CDM benefits

• After the plant completes 11years, it has to sell power toEnergy supply companies ontariff based on variable costas per KERC norms

• Developer to commission theproject with gridsynchronization within 3years from date of statutoryclearance

• 50% of the installed capacityassigned for captive use

Sl. Name of State/ Karnataka Kerala Madhya Pradesh MaharashtraNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

Developer to construct &maintain Evacuation facilities attheir own cost

• Benefits of Carbon Credit, tobe shared equally betweenSTU/ buyer and investor

• Reactive power charges asper KSERC

• Taxes, duties and otherlevies of Central / StateGovernment as per rules.

48C

ompendium

of State G

overnment P

olicies on Renew

able Energy S

ector in India


Sl. Name of State/ ManipurNo Description (From RE policy of State)

1 Order Date No.1/1/2005- S& (Misc) dated12-09-2006

2 Eligible Producer • All Power producersgenerating Grid-gradeelectricity with installedcapacity not exceeding 25MW



3 Land Allotment

4 Operative Period From the date of publication tillsuperseded or modified

5 Sale of Power • Power Department toand Tariff purchase electricity at a

minimum rate of Rs.2.25/-per unit to be increased everyyear for 10 operational years.

• Thereafter the rate ofincrease to be mutuallysettled between Power Deptt.and developer.


Meghalaya( From RE policy of State)


• All power producersgenerating grid-gradeelectricity with installedcapacity between 10 kWand 25 MW

• For captive consumption

DISCOM to purchase electricityat SERC rate & on mutuallyaccepted terms and conditions

Mizoram(From RE policy of State)

• Companies, cooperative,partnerships, individuals,charitable societies, Non-Governmental Organiza-tions, etc.

• Producers generating 10kW to 25 MW of grid-gradeElectricity

• Producers in the joint-sector,formed by Governmentagencies and the producers.

• For captive consumption.

Land lease not exceeding 99years,

From the date of publication tillsuperseded or modified

• Department to purchaseelectricity at a minimum rateof Rs. 3.50/unit applicablefor the year 2002-03 withescalation of 5% every yearfor 10 operational years.

• Thereafter the rate ofincrease to be mutuallysettled between Departmentand the Producer.

• It shall not be compulsoryfor power producer to sellpower to Department

• Developers withconcurrence of theDepartment may sell the

Orissa( From RE policy of State)



Government land if available

With immediate effect for 10years

• To bulk suppliers/distribution licensee onbasis of PPA with theapproval of OERC

• Energy not utilized duringthe year for captive use tobe treated as sold toGRIDCO/ DISTCO.

49C

ompendium

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olicies on Renew

able Energy S

ector in India

6 Wheeling • Department to transmit on itsgrid the power generated byproducer and make itavailable to him for captiveuse or to a third party for salewithin the State, at a uniformwheeling charge of 2% of theenergy fed to the grid,

• Third party to be a HTconsumer of power.

7 Banking Allowed up to 1 year

8 Power Evacuation • Developer to bear cost forand Grid Interfacing evacuation facilities &

interfacing up to the nearestHT lines as well as for Mtc.

• Alternatively, these worksand their maintenance couldbe undertaken by the Powerdepartment at charges to bedecided by the Department

• Cost of augmentation of sub-station capacity at 33/11 kVor higher & transmission linesto be borne by theDepartment.

• STU to transmit on its gridthe power for captive use ofdeveloper or to a third partyfor sale within the state, atan applicable wheelingcharge.

• Third party to be HTconsumer unless conditionrelaxed by DISCOM.

• Developer to bear cost forevacuation facilities &interfacing up to the nearestHT lines as well as forMaintenance.

• Alternatively, these worksand their maintenance couldbe undertaken by theDISCOM at charges to bedecided by the DISCOM/SERC

electricity to a third partywithin and outside the State,at a rate to be mutuallysettled between them.

• PPA for minimum period of10 years unless Developerwants for shorter period

• Department to transmit on itsgrid the power generatedand make it available to himfor captive use or to a thirdparty nominated by eligibleproducer for sale within theState, at a uniform wheelingcharge of 2% of the energysupplied to the grid.

• Third party to be HTconsumer unless conditionrelaxed by DISCOM

Allowed up to 1year

• Developer to bear cost forevacuation facilities &interfacing up to the nearestHT lines as well as forMaintenance

• Alternatively, the aboveworks and their maintenancecould be undertaken by theDepartment at charges to bedecided by the Departmentand the producer on mutualagreement.

• Cost of augmentation ofsub-station capacity at 33/11kV or higher & transmissionlines to be borne by theDepartment.

• Allowed, subject topayment of transmission/distribution and wheelingcharges both for captiveuse and sale out side theState as approved byOERC

• Developer may supplyenergy to any one area notserved by the Licensee.


• Banking charges - 2.5% ofenergy dispatched

• Grid interfacing with thegenerating units to beconstructed by thedeveloper at their own cost.

• Scheme for interconnection to the nearestsubstation to be approvedby GRIDCO/ DISTCO andshall form the part of DPR.

Sl. Name of State/ Manipur Meghalaya Mizoram OrissaNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

50C

ompendium

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able Energy S

ector in India

9 Incentives and • All transactions involvingGeneral wheeling, banking or sale of

power to be settled onmonthly basis

• Exemption from electricityduty for 5 years from COD forcaptive use or third party sale.

• Producers to be treated asindustrial units and similarincentives available to them

• Concessions given toIndustrial units in backwardareas to be provided

• Infrastructural facilities to beon the lines of industrial unitsif plant is set up in industrialarea developed by State Govt.

• GoI Incentives



• MANIREDA to facilitate grantof loans by IREDA & MNRE& accord of clearances forexecution

• If the applicant does not takeeffective steps (i.e at least10% of the total project costnot incurred within sixmonths) to implement theproject, the agreement to beterminated and site allotted toanother applicant

• Infrastructural facilities to beon the lines of industrial unitsif plant is set up in industrialarea developed by StateGovt.

• Exemption from electricityduty for 5 years from CODfor captive use or third partysale.

• Sales Tax/ VAT deferment /remission as applicable

• Meghalaya Non-Conventional and RuralEnergy DevelopmentAgency (MNREDA), tofacilitate clearances for theprojects at the State andCentral levels and grant ofloans by Indian RenewalEnergy DevelopmentAuthority (IREDA) andsubsidies by MNRE.

• Developer to submitapplications for projects andgrid interfacing to MNREDAand DISCOM.

• MNREDA/ State governmentto provide clearance withina period of 2 months from thedate of submission ofapplication

• Exemption from electricityduty for captive use or thirdparty sale




• State Government to extendall incentives and facilitiesgranted by the CentralGovernment for similarUndertaking in other States.

• Equipments and materialsexempted from State salestax

• All transactions involvingwheeling, banking or sale ofpower to be settled on amonthly basis

• Reduction in contractdemand up to 30% ofinstalled capacity permitted,in case power plant is notutilizing Department's Gridfor supply of power to theconsumer


• No transmission chargesfor CPP or NRSEmaintenance for a periodfor 5 years from COD

• In the event of project worknot started within a year ofapproval of PPA, the MOUand PPA will automaticallystand cancelled.


51C

ompendium

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overnment P

olicies on Renew

able Energy S

ector in IndiaCOMBINED SUMMARY OF STATE POLICIES FOR WIND POWER PROJECTS

Sl. Name of State/ PunjabNo Description (From RE policy of State)

1 Order Date No.10/106/2006-STE(1)5390dated 24th Nov, 2006

2 Eligible Producer Private developers to set upwind power projects on firstcome first served basis on thebasis of wind data assessmentcarried out by them

3 Land Allotment • Government at lease rent ofRs.1 / sq. m / annum for 33years


4 Operative Period Five years w.e.f. 8th December,2006.

5 Sale of Power and • Rs.3.49 per unit (Base yearTariff 2006-07) with annual

escalation @ 5% up to 2011-2012

• There after PSEB / HT tariff,whichever is higher.

6 Wheeling 2% of energy fed to the grid

Rajasthan

Energy Deptt. letter No.F.20(3)Energy / 98/Pt.III dated30.4.2003

• Wind Farm Developers(WFD), Wind Energy Gene-rator (WEG) manufacturers,Government Owned Com-panies, Private companies,Joint Venture Companiesand Private investors.

• Minimum capacity of WEG'sto be 225 kW.

State Government to provideland for wind farm at 10% of'District Level Committee (DLC)rates on first cum first servedbasis.

Plants commissioned up to 31stMarch, 2009, unlesssuperseded /modified

• For captive consumption orsale to a third party or to RVPN

• To RVPN/ DISCOMS, at arate of Rs. 3.32 per unit during2003-04 plus 2% increaseper year for 10 years

• Thereafter, a fixed rate of Rs.3.92 per unit up to the 20th year

10% of the energy fed into thegrid.

Tamilnadu

Reasonable power tariff

Concessional wheeling charges@5% for captive use

Uttarakhand(From RE policy of State)

No.263/I(2)/2008-04(8)-96/2001 29th dated Jan, 2008

• UPCL to have first right ofpurchase of electricity

• UERC to determine price ofelectricity

• State Government toprovide guarantee forpayments to be made byUPCL for purchase of power

• UPCL/PTCUL to transmitthe power generatedthrough its grid for captiveuse or third party salewithin/ outside the state

• Wheeling charges to beannounced in advance

52C

ompendium

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ector in India

Allowed at mutually agreedterms

T&D lines from generation siteto be provided by UPCL/PTCUL

• CDM Benefits to be passedto the developers

• Not more than threeprojects in each category tobe allotted to a developer

• Preference to industrialunits located in State in theopen competitive biddingprocess provided the bidis not less than 80% of thehighest bid

• If developer does notrestrict to the prescribedtime schedule of comple-tion of project, premium tobe forfeited and allotmentcanceled

• Projects to be offered for 40years from the date of award

• Application fee (Non-refundable) - Rs. 5000/-

• Processing fee (Non-refun-dable) - For projects up to1MW - Rs. 10,000/- and morethan 1MW - Rs. 25,000/-

• Security Payment - Forprojects up to 1MW - Rs.20,000/- and more than1MW- Rs. 50,000/-

• Committee headed byChief Secretary to accordapprova l s / c lea rancesthrough a single windowmechanism

Allowed subject to 5% chargesin a financial year

Power evacuation arrange-ments to be provided byDeveloper.

A. MNRE, Govt. of India

• Accelerated depreciationup to 80% for income taxcalculations subject to aminimum utilization for 6months in the year in whichdeduction is claimed.

• Import of wind electricgenerator permitted underOpen General License.

• Customer dutyconcessions on windelectric generators andcertain essential spares.

• Tax holiday for 10 years

B. Govt. of Tamilnadu

To buy surplus energy atRs. 2.75 per unit from the windmills commissioned before15.05.2006 and Rs 2.90 perunit commissioned after15.05.2006

• Allowed in a calendar year

• Banked energy, not consu-med to be treated as sold toRVPN at 60% of the pre-vailing 'Large Industrial tariff'.

Developer to undertake andbear the cost of grid interfacingfacilities plus maintenancecost.

7 Banking Allowed.

8 Power Evacuation Developer, to bear the costand Grid Interfacing for providing the evacuation

system including transmissionlines.

9 Incentives and • VAT @ 4% on manufactu-General ring & sale of NRSE devise /

system and equipment /machinery

• PEDA to assist in seekingcarbon credit under CDM

• Octroi exempted

Sl. Name of State/ Punjab Rajasthan Tamilnadu UttarakhandNo Description (From RE policy of State) (From RE policy of State)

53C

ompendium

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olicies on Renew

able Energy S

ector in India

Sl. Name of State/ BiharNo Description (From RE policy of State)

1 Order Date

2 Eligible Producer Any Industry, Institution, PrivateAgency, Partnership Firm,Consortia, Panchayat, Co-Operative Or RegisteredSociety

3 Land Allotment Government land, if availableon lease, otherwise privatepurchase.

4 Operative Period 5 Years with immediate effect

5 Sale of Power and State grid/ BSEB/third party/HTTariff Consumer of BSEB/Pvt.

Consumer

COMBINED SUMMARY OF STATE POLICIES FOR SOLAR POWER PROJECTS

Gujarat

Solar Power Policy - 2009G.R.No.SLR-11-2008-2176-Bdated 6th January, 2009

• Any company or bodycorporate or association ofbody of individuals, whetherincorporated or not, orartificial juidical person,

• Minimum project capacity ofa Solar Power Generators(SPG), in case of solarPhotovoltaic (SPV) andSolar Thermal (ST) to be 5MW each

• A maximum 500 MW SPGallowed for installation

Up to 31.3.2014.

• Open Access for Third partsale

• Cross subsidy surchargenot applicable for openaccess for third party salewithin the state.

• Energy to be sold toDistribution licensees in theState at levelised fixed tarifffor SPV & ST (as detailed inPolicy) for 25 years


GoH, Renewable EnergyDeptt. Dated 23-11-2005

Companies, Cooperatives,Partnerships, Local SelfGovernments, State NodalAgency, Boards &Corporations, Power utilities,Private developers, Public -Private PartnershipCompanies, Consort ia,Registered Societies, NGOs,individuals etc.



• To Licensee/ Utilities atHERC tariff (for newprojects after this Policy)

• Surplus power from captivepower to utilities atnegotiated price. ( for oldprojects)

Chhattisgarh(From RE policy of State)

Notification No. 38 dated April 8,2002

• Every unit, organisation orPrivate agency setting up ofRE projects .

• Parties may set-up unitseither themselves or as ajoint venture

• Govt. land, if available, onlease,

• Private land to be acquiredby the Govt. and madeavailable to the party atacquisition cost.

• Parties may use the powerthemselves or sell it to a thirdparty after permission fromGoC, CSEB.

• CSEB to purchase at rateof Rs. 2.25 per unit.

• For third party, the rates tobe settled mutually .

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On Licensee / Utilities Grid forcaptive use or for Third Partysale within the State as perapproved HERC tariff.

• Allowed for one year freeof cost.

• If the banked energy is notutilized within twelve months,no charges shall be paidin lieu of such power.

• Cost of power evacuationup to HVPN/UHBVN,DHBVN network to beborne by the Developer.

All new projects to be treatedas "Industry" in terms ofIndustrial Policy , 2005 and allthe incentives available tonew projects to be applicableas per this Policy.

On CSEB's transmission /distribution system

• Developer to bear cost forevacuation of Power fromplant to nearest grid sub-station

• Lines/equipments to bemaintained by CSEB atDeveloper's cost.

• Incentives / concessions asapplicable to new Industrialunits

• Reactive charges to be paidto CSEB for taking reactivepower from them.

• Electricity sold to third partyor for self use exemptedfrom electricity duty for 5years

Allowed at a wheeling chargesof 2% of the energy fed to theGrid

• Power by the SPG to beinjected at 66 kV.

• Evacuation facility from theSolar substation/switch yardto GETCO substation to beapproved & laid by GETCO

• Developer to pass 50% ofthe gross benefit of CDM tothe distribution licensee

• SPGs installed andcommissioned during thisperiod to be eligible for theincentives, for a period of 25years from the date ofcommissioning

• Benefits of this policy will notbe available to the projectsset up under MNREincentive scheme for SPG

• Any subsidy/incentivereceived by SPG developersfrom any source to bereduced from tariff rateexcept accelerateddepreciation under IT Act

• Exemption from demand cutup to 50% of the installedcapacity assigned forcaptive use

• Exempted from payment ofElectricity duty

Sl. Name of State/ Bihar Chhattisgarh Gujarat HaryanaNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

6 Wheeling On BSEB transmission anddistribution system as peragreed terms with Developer

7 Banking

8 Power Evacuation Developer to bear cost forand Grid Interfacing evacuation of power to the

nearest State/BSEB grid/sub-station.

9 Incentives and Incentives/concessions asGeneral applicable to new Industrial

units/backward areas.

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2 Eligible Producer KPTCL for allotment of projectsabove 100 MW



• Land owner farmers to beequity partners for equity notless than 5% of gross energygenerated

• 10% barren Governmentlands reserved for industrialuse to KREDL for REdevelopment



Kerala(From RE policy of State)

G.O.(MS) No. 16/2002/Steddated 03.04.2002

• Companies, Co-operative,Partnerships, Local SelfGovernments, registeredsocieties, NGOs, individuals

• Power producers for captiveconsumption


Notification dated 17.10. 2006& Amendment dated12.05.2008

• Any Industry, Institution orPrivate unit, / Joint Venture


• Minimum capacity for stand-alone Solar PhotovoltaicUnit up to 5 kW.

• Land @ Rs. 1/- /year (tokenpremium) for 30 years or lifeof the Project




5 Years

Manipur(From RE policy of State)

No.1/1/2005- S& (Misc) dated12-09-2006

• All Power producersgenerating Grid-gradeelectricity with installedcapacity not exceeding 25MW


• Companies, Co-operative,partnerships, VillageDevelopment Board/Village Authorities,individuals etc.

From the date publication untilsuperseded or modified

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• Sale of Power from onecompany to its sisterconcern to be deemed ascaptive user of power

• Power can be utilized byGenerator itself or for sale toMPSEB or its SuccessorCompany or to anyconsumer

• Tariff as per MPERC


• 4% subsidy is available

• Allowed 100%

• MPSEB / Distribution Co. tocharge 2% of Banked poweras banking charges.


• Power Department to pur-chase electricity at aminimum rate of Rs.2.25/-per unit to be increased everyyear for 10 operational years.

• Thereafter the rate ofincrease to be mutuallysettled between PowerDeptt. and developer.


• Department to transmit onits grid the powergenerated by producer andmake it available to him forcaptive use or to a thirdparty for sale within theState, at a uniform wheelingcharge of 2% of the energyfed to the grid,


Allowed up to 1 year

• Developer to bear cost forevacuation facilities &interfacing up to the nearestHT lines as well as for Mtc.

• Alternatively, these worksand their maintenancecould be undertaken by thePower department at

5 Sale of Power and To ESCOMs in area whereTariff Project is located at KERC Tariff

of Rs. 3.40 / unit.



8 Power Evacuation KPCTL to provide transmissionand Grid Interfacing lines and developers to bear the

cost of lines from the project siteto the sub-stations as per gridnorms

Sl. Name of State/ Karnataka Kerala Madhya Pradesh ManipurNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

• PPA for a minimum period offive years.

• Power purchase by KSEB ata ceiling rate of Rs.2.80 perunit with 2000-01 as baseyear and 5% escalationevery year up to 5 years ofoperation.

• Higher Tariff in specialcases

On KSEB grid for captive useor for banking, at a wheelingcharge of 5 % of energy fedinto the grid, includingtransmission loss

• Allowed 100% from June toFebruary every financialyear & from March to June.

• If the banked energy is notutilized at the end of theyear, it can be purchased byKSEB at the average sellingrate of KSEB

• Developer to bear cost forevacuation facilities &interfacing includingmaintenance.

• KSEB to initially bear theexpenditure for erection ofHT sub stations andtransmission infrastructure.

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ector in IndiaSl. Name of State/ Karnataka Kerala Madhya Pradesh ManipurNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

9 Incentives and • KREDL to facilitate availingGeneral CDM

• MNRE supported solar gridconnected projects of 1MWand above have incentive upto Rs 12/kWh for solar PV andRs. 10/kWh for solar thermalin addition to tariff allowed byKERC.

• Roof Top grid connectedsolar kWp projects of 5 kWpto 100 KWp to be connectedat 415 V, 3 phase, 11 kV levelof distribution licensees withmaximum energy injection tobe not more than 70% of theconsumption from distributionlicensee sources


• Developer to commission theproject with gridsynchronization within aperiod of 3 years from thedate of statutory clearance


• ANERT to recover 50 percent of this expenditure fromthe power project promotersand give it to KSEB.

• Industry status under theschemes administrated byIndustries Department andincentives to be madeavailable to them.

• Large Industries having2000 kVA and above asconnected load, to produceat least 5 per cent of theirrequirement through captivepower plants

• KSEB to provide facilities ofan irrevocable, divisible,revolving and confirmedstand by Letter of Credit (LC)by any Nationalised Bank.

• The amount of LC to beequal to the ExpectedPayment for one month byBoard.

• All transactions involvingwheeling, banking or sale ofpower to be settled on amonthly basis.

• Carbon credit benefits toInvestor

• Exempted from Entry Tax /Octroi / VAT.

• The units which do notintend to take benefits underthis Policy to be at liberty toset up Project underElectricity Act -2003


charges to be decided bythe Department

• Cost of augmentation ofsub-station capacity at 33/11 kV or higher &transmission lines to beborne by the Department.

• All transactions involvingwheeling, banking or saleof power to be settled onmonthly basis




• Infrastructural facilities tobe on the lines of industrialunits if plant is set up inindustrial area developedby State Govt.

• GoI Incentives

• Exemption of tax on Solardevices and spare parts.


• MANIREDA to facilitategrant of loans by IREDA &MNRE & accord ofclearances for execution

• If the applicant does nottake effective steps (i.e., atleast 10% of the total projectcost not incurred within sixmonths) to implement theproject, the agreement to beterminated and site allottedto another applicant

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COMBINED SUMMARY OF STATE POLICIES FOR SOLAR POWER PROJECTS

Sl. Name of State/ MeghalayaNo Description (From RE policy of State)

1 Order Date

2 Eligible Producer • Power producingentrepreneur. Companies,cooperative, partnershipindividuals etc.

• All power producersgenerating grid-gradeelectricity with installedcapacity between 10 kW and25 MW


3 Land Allotment

4 Operative Period

5 Sale of Power and DISCOM to purchase electricityTariff at SERC rate & on mutually

accepted terms and conditions


• Companies, cooperative,partnerships, individuals,charitable societies,Non-Governmental Organi-zations, etc.

• Producers generating 10 kWto 25 MW of grid-gradeElectricity







• It shall not be compulsory for



Any Public Sector, PrivateEntrepreneur, RegisteredNGOs, Cooperatives, Consortiaetc.

• Government land if available

• If the applicant does not takeeffective step to implementthe project within 6 monthsfrom date of obtainingpossession of land theagreement shall beterminated




Punjab(From RE policy of State)

No.10/106/2006-STE(1)5390dated 24th Nov, 2006.

• Government land at leaserent of Rs.1/sq. meter/annum for 33 years


Five years w.e.f. 8thDecember, 2006.

• Rs.7.00 per unit (Base year2006-07) with annualescalation @ 5% up to2011-2012

• Thereafter PSEB / HT tariff,whichever is higher

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6 Wheeling • STU to transmit on its grid thepower for captive use ofdeveloper or to a third partyor sale within the state, at anapplicable wheeling charge.

• Third party to be HTconsumer of the powerunless relaxed by theDISCOM.

7 Banking


interfacing up to the nearestHT lines as well as forMaintenance.


power producer to sell powerto Department

• Developers withconcurrence of theDepartment may sell theelectricity to a third partywithin and outside the State,at a rate to be mutuallysettled between them.




Allowed up to 1year



• Allowed, subject to paymentof transmission/ distributionand wheeling charges bothfor captive use and out sidethe State as approved byOERC

• Developer may supplyenergy to any area notserved by the licensee.


• Banking charges 2.5% ofenergy dispatched

Grid interfacing with thegenerating units to beconstructed by the developer attheir own cost.

2% of energy fed to the grid

Allowed.

Private developer, at its owncost to provide the evacuationsystem including transmissionlines.

Sl. Name of State/ Meghalaya Mizoram Orissa PunjabNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

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9 Incentives and • Infrastructural facilities to beGeneral on the lines of industrial units

if plant is set up in industrialarea developed by StateGovt.



• Meghalaya Non-Conventional and RuralEnergy Development Agency(MNREDA), to facilitateclearances for the projects atthe State and Central levelsand grant of loans by IndianRenewal EnergyDevelopment Authority(IREDA) and subsidies byMNRE.


• MNREDA/ State governmentto provide clearance within aperiod of 2 months from thedate of submission ofapplication

• Cost of augmentation ofsub-station capacity at 33/11 kV or higher &transmission lines to beborne by the Department


• Infrastructural facilities to beon the lines of industrialunits if plant is set up inindustrial area developed byState Govt.






• Reduction in contractdemand up to 30% ofinstalled capacity permitted,in case power plant is notutilizing Department's Gridfor supply of power to theconsumer


• No transmission charges forCPP or NRSE maintenancefor a period for 5 years fromCOD


• VAT @ 4% onmanufacturing & sale ofNRSE devise / system andequipment / machinery


• Octroi exempted

Sl. Name of State/ Meghalaya Mizoram Orissa PunjabNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

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olicies on Renew

able Energy S

ector in IndiaCOMBINED SUMMARY OF STATE POLICIES FOR SOLAR POWER PROJECTS

Sl. Name of State/ Rajasthan Tripura UttarakhandNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

1 Order Date Energy Deptt. letter no. F.20 (4) Energy/2004 dated 25.10.2004 and amendedvide letters of even nos. dated10.3.2005, 16.7.05, 18.8.05, 24.2.06,30-11-06 ,19-1-07, 27/29-3-2008,15.5.2008, and 10-11-2008.

2 Eligible Producer

3 Land Allotment • Government land to be allotted toPower Producer at concessionalrates viz, 10% of DLC rates asdetailed in policy

• Private Land to be procured at cost.

• If any Producer initiates activities onthe allotted land without projectapproval, grid connectivity to beallowed only after payment of anamount @ Rs. 5.00 lacs per MW aspenalty amount to RREC

4 Operative Period

5 Sale of Power and Tariff • Producers may use power for captiveconsumption or for sale to consumers/licensees including DISCOMS.

• Energy to be offered to open accessconsumer/ DISCOMS/ CPPs withinthe State

• After fulfil l ing RE Obligationdevelopers may sell surplus energyout side the State.

• Companies, cooperative,partnerships, individuals, charitablesocieties, Non-GovernmentalOrganizations etc.

• Government agencies and theproducers (JV)


• Government Land on lease

• Private Land on payment basis

• Forest Land as per the ForestConservation Act

Date of its notification till superseded ormodified

• Department / TSECL to purchaseelectricity at TERC tariff


• PPA for a minimum period of 10years.

• Department to consider PPA forshorter period on merit.

No.263/I(2)/2008-04(8)-96/2001 29thdated Jan, 2008

• UPCL to have first right of purchaseof electricity


• Government of Uttarakhand toProvide guarantee for Paymentsto be made by UPCL for purchaseof Power

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• Price of power to be sold toconsumers / licensees other thanDISCOMS as per mutual agreementbetween seller and the purchaser.

• For DISCOMS the price of power tobe as per RERC order 09-03-2007& amendment 14-03-2007

• Cap on purchase of energy to be asspecified by the (RERC)

6 Wheeling • Except in case of power sold toDISCOMS, Producer to paywheeling charges @ 10% of theenergy billed into the grid inclusiveof the T&D losses.

• In respect of third party sale and / orcaptive use for which PPAs are signedafter March 31, 2007, the transmission,wheeling and other charges shall beas specified by RERC.

7 Banking • Allowed

• For third party sale / captive use forwhich PPAs signed after March 31,2007, the banking to be as specifiedby RERC.

8 Power Evacuation and A. Except in case of solar power notGrid Interfacing exceeding 220 kW the grid interfacing

arrangements to be made byDeveloper/ RVPN/ Discom

• Interfacing arrangements from thepoints of generation to the poolingstation and further Receiving stationto be developed by the Producer athis own cost.

• Maintenance from Plant to receivingstation to be done by developer andO&M from Pooling station toReceiving station by RVPN /Discomto whom it get transferred aftercompletion of interconnection

• Increase of tariff to be mutuallysettled between Department / TSECLand the producer

2% of the energy supplied to the grid.

• Banked for one Financial year.

• Unutilised banked energy will besettled at the rate specified in thePPA.

• Developers to bear the entire cost ofPower evacuation and interfacingincluding maintenance to the nearestHT lines.

• Cost of augmentation of sub-stationcapacity at 33/11 kV or higher andtransmission lines to be borne by theDepartment

• UPCL/PTCUL to transmit powerthrough its grid for captive use orthird party sale within/ outside thestate

• Wheeling charges to be announcedin advance

Allowed at mutually agreed terms

T&D lines from generation site to beprovided by UPCL/PTCUL


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• Producer to pay Rs. 2 lac per MW toRVPN/ Discom, for creation of facilityfor receiving Power.

• Augmentation of transmission/distribution systems to evacuate thepower from receiving station, to bedone by RVPN / Discom

B. RVPN/ DISCOM to grant inter-connection facility, wherever adequatepower evacuation capacity is available,within one month of intimation or COD,whichever is later.

9 Incentives and General • Power projects established for whichPPAs have been signed under thePolicies -1999, 2000 and 2003 to begoverned as per the terms &conditions under the concernedpolicies provided the power projectsgets commissioned before 31stMarch 2005.

• Developer to deposit a refundableamount as security deposit of Rs.5.0 lac per MW. in the form of cashor bank guarantee with RREC,towards completion of the project inthe prescribed time frame,

• Producers to be treated an Industryand similar incentives available to them

• Infrastructural facilities to be providedon the lines of industrial units

• Sales Tax Exemption

• Incentives provided by CentralGovernment : as per "North EastIndustrial and Incentive PromotionPolicy (NEIIP), 2007.

• Solar equipment and materialsexempted from State sales tax / VATalternately reimbursed 100%

• CDM benefit to developers in firstyear, 10% to beneficiaries in 2ndyear to be increased by 10% everyyear upto 50% and then sharedequally between developer andbeneficiary.

• Producer to deposit an amount equalto 2.5% of the estimated cost of theproject as security deposit towardscompletion of the project within theprescribed time frame.

• All transactions to be settled onmonthly basis.

• CDM Benefits to be passed to thedevelopers

• Not more than three projects in eachcategory to be allotted to a developer

• Preference to be accorded toindustrial units located in State in theopen competitive bidding processprovided the bid is not less than 80%of the highest bid

• If developer does not restrict to theprescribed time schedule ofcompletion of project, premium to beforfeited and allotment canceled

• Projects to be offered for 40 yearsfrom the date of award,

• Application fee (Non-refundable) -Rs. 5000/-

• Processing fee (Non-refundable) -For projects up to 1MW - Rs. 10,000/- and more than 1MW - Rs. 25,000/-

• Security Payment - For projects upto 1MW - Rs. 20,000/- and more than1MW- Rs. 50,000/-

• Committee headed by ChiefSecretary to accord approvals /clearances through a single windowmechanism


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Sl. Name of State/ BiharNo. Description (From RE policy of State)

1 Order Date

2 Eligible Producer Any Industry, Institution, PrivateAgency, Partnership Firm,Consortia, Panchayat, Co-Operative Or RegisteredSociety

3 Land Allotment Government land on lease,otherwise private purchase.

4 Operative Period 5 Years with immediate effect

5 Sale of Power State grid/ BSEB/third party/HTand Tariff Consumer of BSEB/Pvt.

Consumer

6 Wheeling On BSEB transmission anddistribution system as peragreed terms

7 Banking

COMBINED SUMMARY OF STATE POLICIES FORBIOMASS/BAGASSE POWER PROJECTS

Gujarat

Resolution No. PWR-1096-1905-B dated nil

Sugar mill / Promoter /Developer having surplus poweravailable in addition to thecaptive requirement of the sugarmill

• GEB to purchase surpluselectricity @ Rs.2.25 perkWh with 1994-95 as baseyear with 5% escalationevery year for a period of 10years from CoD

• Purchase price for theremaining period to benegotiated

Wheeling charges @ 2% of theenergy fed to the Grid


GoH, Renewable EnergyDeptt. Dated 23-11-2005

Companies, Cooperatives,Partnerships, Local SelfGovernments, State NodalAgency, Boards &Corporations, Power utilities,Private developers, Public -Private PartnershipCompanies, Consort ia,Registered Societies, NGOs,individuals etc.



• To Licensee/ Utilities atHERC tariff (for newprojects after this Policy)

• Surplus power from captivepower to utilities atnegotiated price. (for oldprojects)

On Licensee / Utilities Grid forcaptive use or for Third Partysale within the State as perapproved HERC tariff.

• Allowed for one year freeof cost.

Chhattisgarh(From RE policy of State)

Notification No. 38 dated April 8,2002

• Every unit, organisation orPrivate agency

• Parties may set-up unitseither themselves or as a JVwith CREDA.

• Government land on lease.

• Private land at acquisitioncost.

• Developer may use thepower themselves at anyplace or sell to a third party.

• CSEB to purchase power atRs. 2.25 / unit.

• For third party, the rates tobe settled mutually

• Meters and equipments tobe installed by Developer athis cost

Wheeling at rates fixed byCSEB

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• If the banked energy is notutilized within twelvemonths, no charges shallbe paid in Lieu of suchpower.

Cost of power evacuation upto HVPN/UHBVN, DHBVNnetwork to be borne by theDeveloper.

• All new projects to betreated as "Industry" interms of Industrial Policy ,2005 and all the incentivesavailable to new projects tobe applicable as per thisPolicy

• Two sets of separatemeters to be installed, onefor power export & other forimport

• Co-generation projects tobe designed to use non-fossil fuels.

• Developer to construct &maintain Evacuationfacilities at their own cost

• These lines/equipments tobe maintained by CSEB, atDeveloper's cost

• Incentives / concessions asapplicable to new Industrialunits

• Reactive charges to be paidto CSEB for taking reactivepower from them.

• Electricity sold to third partyor for self use exemptedfrom electricity duty for fiveyears

Sl. Name of State/ Bihar Chhattisgarh Gujarat Haryana No Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

8 Power Evacuation Developer to bear cost forand Grid Interfacing evacuation of power to the

nearest State/BSEB grid/sub-station.

9 Incentives and Incentives/concessions asGeneral applicable to new Industrial

units/backward areas.

• Transmission lines forevacuation of power fromplant to the nearest grid sub-station to be built by thedeveloper.

• Metering equipment to beprovided by the sugar millsat their own cost

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2 Eligible Producer



• Land owner farmers to beequity partners of not lessthan 5% of gross energygenerated

• 10% barren Governmentlands reserved for industrialuse to KREDL for REdevelopment


• Government waste lands tobe identified and offered toset up Biomass projects


Kerala(From RE policy of State)

G.O.(MS) No. 16/2002/STEDdated 03.04.2002

• Companies, Co-operative,Partnerships, Local SelfGovernments, registeredsocieties, NGOs, individualsetc.



Notification dated 17.10. 2006& Amendment dated12.05.2008

• Any Industry, Institution orPrivate unit/Joint Venture


• Land @ Rs. 1/- /year (tokenpremium) for 30 years or lifeof the Project




5 Years

Maharashtra(From RE policy of State)

Government Resolution (i)N o . A P A U ( N C E ) - 2 0 0 7 /Pra.Kra.693/ Urja-7 dated 14thOctober 2008 (ii) Amendmentdated 03-08-2009

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• Sale of Power from onecompany to its sisterconcern to be deemed ascaptive user of power

• Power can be utilized byGenerator itself or for sale toMPSEB or its SuccessorCompany or to anyconsumer

• Tariff as per MPERC


• 4% subsidy on is available

• Allowed 100%

• MPSEB / Distribution Co. tocharge 2% of Banked poweras banking charges


It shall be binding onDevelopers to sell 100% ofelectricity generated toLicensee or Client in the State.

• Developers to install thepower evacuation facilitiesincluding modification fromproject site to HV / EHVsubstation includingtransmission lines

• After commissioning,evacuation arrangementto be transferred toMSETC / MSEDCL withownership andmaintenance work

5 Sale of Power and To ESCOMs in area where theTariff project is located, at KERC Tariff



8 Power Evacuation KPCTL to provide transmissionand Grid Interfacing lines and developers to bear the

cost of lines from the project siteto the sub-station.

Sl. Name of State Karnatka Kerala Madhya Pradesh MaharashtraNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

• PPA for a minimum period offive years.

• Power purchase by KSEB ata ceiling rate of Rs.2.80 perunit with 2000-01 as baseyear and 5% escalationevery year up to 5 years ofoperation.

• Higher Tariff in specialcases

On KSEB grid for captive useor for banking, at a wheelingcharge of 5 % of energy fedinto the grid,includingtransmission loss

• Allowed 100% from Juneto February every financialyear & from March toJune.

• If the banked energy is notutilized at the end of theyear, it can be purchasedby KSEB at the averageselling rate of KSEB

• Developer to bear cost forevacuation facilities &interfacing includingmaintenance.

• KSEB to initially bear theexpenditure for erection ofhigh- tension sub stationsand transmissioninfrastructure.

• ANERT to recover 50 percent of this expenditure from

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Sl. Name of State/ Karnataka Kerala Madhya Pradesh MaharashtraNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State) (From RE policy of State)

the power projectpromoters and give it toKSEB.

• Industry status under theschemes administrated byIndustries Department andincentives to be madeavailable to them.

• Large Industries having2000 kVA and above asconnected load, to produceat least 5 per cent of theirrequirement through captivepower plants

• KSEB to provide facilities ofan irrevocable, divisible,revolving and confirmedstand by Letter of Credit (LC)by any Nationalised Bank.

• The amount of LC to beequal to the ExpectedPayment for one month byBoard.

• All transactions involvingwheeling, banking or sale ofpower to be settled on amonthly basis.

• 50% of the approvedexpenses on same toDeveloper

• No electricity duty for first10 years for captive use/third party sale.

• For Bagasse projectCapital grant of Rs.1 Cr. /project for HV/ EHVsubstation, if project runswith minimum 80% PLF forminimum one year

• If Co-operative sugarfactory installs projects100% exemption for thenext 10 years to be givenon 3% purchase tax whichis charged on sugar canepurchased for crushing.

9 Incentives and • KREDL to facilitate availingGeneral CDM benefits


• Developer to commission theproject with gridsynchronization within 3years from date of statutoryclearance


• Government to facilitateBiomass power plant with anenabling Tariff atmosphere inCo-ordination with KERC

• Industries to be encouragedfor co-generation byextending capital subsidyscheme as one time grantsubject to surplus power fedto grid

• Carbon credit benefits toInvestor

• Exempted from Entry Tax /Octroi / VAT.

• The units which do notintend to take benefits underthis Policy to be at liberty toset up Project underElectricity Act -2003


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able Energy S

ector in IndiaCOMBINED SUMMARY OF STATE POLICIES FOR

BIOMASS/BAGASSE POWER PROJECTS

Sl. Name of State/ ManipurNo Description (From RE policy of State)

1 Order Date No.1/1/2005- S& (Misc) dated12-09-2006

2 Eligible Producer • All Power producersgenerating Grid-gradeelectricity with installedcapacity not exceeding 25MW



3 Land Allotment

4 Operative Period From the date of publication tillsuperseded or modified

5 Sale of Power and • Power Department toTariff purchase electricity at a

minimum rate of Rs. 2.25/-per unit to be increased everyyear for 10 operational years.

• Thereafter the rate ofincrease to be mutuallysettled between Power Deptt.and developer.


Meghalaya(From RE policy of State)


• All power producersgenerating grid-gradeelectricity with installedcapacity between 10 kW and25 MW


DISCOM to purchase electricityat SERC rate & on mutuallyaccepted terms and conditions


• Companies, cooperative,partnerships, individuals,charitable societies,Non-Governmental Organi-zations, etc.

• Producers generating 10 kWto 25 MW of grid-gradeElectricity







• It shall not be compulsoryfor power producer to sellpower to Department

• Developers withconcurrence of the




Government land if available




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6 Wheeling • Department to transmit on itsgrid the power generated byproducer and make itavailable to him for captiveuse or to a third party for salewithin the State, at a uniformwheeling charge of 2% of theenergy fed to the grid,


7 Banking Allowed up to 1 year


interfacing up to the nearestHT lines as well as for Mtc.

• Alternatively, these worksand their maintenance couldbe undertaken by the Powerdepartment at charges to bedecided by the Department

• Cost of augmentation of sub-station capacity at 33/11 kVor higher & transmission linesto be borne by theDepartment.

• STU to transmit on its gridthe power for captive use ofdeveloper or to a third partyfor sale within the state, atan applicable wheelingcharge.

• Third party to be HTconsumer unless conditionrelaxed by DISCOM.

• Developer to bear cost forevacuation facilities &interfacing up to the nearestHT lines as well as forMaintenance.


Department may sell theelectricity to a third partywithin and outside the State,at a rate to be mutuallysettled between them.




Allowed up to 1year



• Cost of augmentation ofsub-station capacity at 33/11kV or higher & transmissionlines to be borne by theDepartment.

• Allowed, subject topayment of transmission/distribution and wheelingcharges both for captiveuse and out side the Stateas approved by OERC

• Developer may supplyenergy to any one area notserved by the licensee.

Allowed on annual basis.Banking charges - 2.5% ofenergy dispatched

• Grid interfacing with thegenerating units to beconstructed by thedeveloper at their own cost.

• Scheme for interconnection to the nearestsubstation to be approvedby GRIDCO/ DISTCO andshall form the part of DPR.


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• Reduction in contractdemand to the extent of 30%of installed capacity of thepower plants shall bepermitted by theDepartment, in case powerplant is not utilizingDepartment's Grid for supplyof power to the consumer


9 Incentives and • All transactions involvingGeneral wheeling, banking or sale of

power to be settled onmonthly basis


• Producers to be treated asindustrial units and similarincentives available to them·Concessions given toIndustrial units in backwardareas to be provided


• GoI Incentives



• MANIREDA to facilitate grantof loans by IREDA & MNRE& accord of clearances forexecution

• If the applicant does not takeeffective steps (i.e., at least10% of the total project costnot incurred within sixmonths) to implement theproject, the agreement to beterminated and site allotted toanother applicant


• Exemption from electricityduty for 5 years from CODfor captive use or third partysale.


• Meghalaya Non-Conventional and RuralEnergy DevelopmentAgency (MNREDA), tofacilitate clearances for theprojects at the State andCentral levels and grant ofloans by Indian RenewalEnergy DevelopmentAuthority (IREDA) andsubsidies by MNRE.


• MNREDA/ Stategovernment to provideclearance within a period of2 months from the date ofsubmission of application


• No transmission chargesfor CPP or NRSEmaintenance for a periodfor 5 years from COD


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Sl. Name of State/ Punjab Rajasthan Tripura UttarakhandNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

1 Order Date No.10/106/2006-STE(1)5390dated 24th Nov, 2006.

2 Eligible Producer Only one Biomass powerproject to be allocated throughcompetitive bidding route inTehsil (Taluka) in the State

3 Land Allotment • Government land at leaserent of Rs.1/sq. metre/annum for 33 years .

• Agricultural land withoutconversion charges.

4 Operative Period Five years w.e.f. 8th December,2006.

5 Sale of Power and • Bagasse/ Biomass co-Tariff generation projects- Rs.3.49

per unit (Base year 2006-07)with five annual escalation @3% up to 2011-2012

• Biomass power projects-Rs.3.49 per unit (Base year2006-07) with five annualescalation @ 5% up to 2011-2012

Energy Deptt. Notification No. F20 (10) Energy 09/ dated26.02.2010

• Government land atconcessional rates viz, 10%of DLC rates.

• Private Land on payment.

From 26.02.2010 tillsuperseded or modified.

• Producer to use power forcaptive consumption or forsale to third party/ licenseeincluding Discoms

• Price of power to be sold tothe consumers/ licenseesother than Discoms to bedone on mutual agreementbetween seller & purchaser.

• Companies, cooperative,partnerships, individuals,charitable societies,Non-Governmental Organi-zations etc.

• Government agencies andthe producers. (JV)

• Power producers for captiveconsumption.

• Government Land: on lease

• Private Land on payment

• Forest Land as per theForest Conservation Act

Date of notification til lsuperseded or modified

• Department / TSECL topurchase electricity atTERC tariff


• PPA for a minimum periodof 10 years.

• Department to consider PPAfor shorter period on merit.

No.263/I(2)/2008-04(8)-96/2001 29th dated Jan, 2008

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• Thereafter PSEB / HT tariffwhichever is higher

6 Wheeling 2% of energy fed to the grid

7 Banking Allowed.

8 Power Evacuation Developer, to bear the cost forand Grid Interfacing providing the evacuation

system including transmissionlines

• Price of power to be sold toDiscoms to be specified byRERC

• Allowed

• For third party sale or forcaptive use within the State,Producer to execute awheeling Agreement withDiscom.

• Wheeling Agreement withRVPN to be executedseparately if the Producerintends to use RVPN systemfor wheeling of power.

• Generating plant substationto be developed andmaintained by producer atits own cost.

• For receiving station,Producer to terminate their33 kV (minimum voltagelevel) power evacuationfeeder to RVPN's GSS inconsultation with RREC.

• Producer to pay gridconnectivity charges toRVPN/ Discom as finalizedby RERC within 3 months ofPPA.

2% of the energy supplied to thegrid.

Banked for one Financial year.

• Developers to bear theentire cost of Powerevacuation and interfacingincluding maintenance tothe nearest HT lines.


• UPCL to have first right ofpurchase of electricity


• Government of Uttarakhandto Provide guarantee forpayments to be made byUPCL for purchase

• UPCL / PTCUL to transmitpower generated through itsgrid for captive use or thirdparty sale within/ outsidethe state

• Wheeling charges to beannounced in advance

Allowed at mutually agreedterms

T&D lines from generationsite. To be provided by UPCL/PTCUL


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• Producers to be treated anIndustry and similarincentives available tothem.

• Incentives provided byCentral Government : as per"North East Industrial andIncentive Promotion Policy(NEIIP), 2007.

• Renewable Energyequipment and materialsexempted from State salestax/VAT, alternatelyreimbursed.

• 100% CDM benefit todevelopers in first year, 10%to beneficiaries in 2nd yearto be increased by 10%every year up to 50% andthen shared equallybetween developer andbeneficiary.

• Use of 30% conventionalfuel to be allowed forBiomass based projects inthe event of reducedBiomass availability

• Producer to deposit anamount equal to 2.5% of theestimated cost of the projectas security deposit towards

• CDM Benefits to bepassed to the developers

• Not more than threeprojects in each categoryto be allotted to adeveloper

• Preference to be accordedto industrial units locatedin State in the opencompetitive biddingprocess provided the bidis not less than 80% of thehighest bid

• If developer does notrestrict to the prescribedtime schedule ofcompletion of project,premium to be forfeitedand allotment canceled

• Projects to be offered for40 years from the date ofaward,

• Application fee (Non-refundable) - Rs. 5000/-

• Processing fee (Non-refundable) - For projectsup to 1MW - Rs. 10,000/-and more than 1MW - Rs.25,000/-

9 Incentives and • VAT @ 4% on manufacturingGeneral and sale of NRSE devise

system and equipment /machinery

• Octroi exempted.


• Evacuation system beyondGenerating Plant substation til l the nearestRPVN's grid sub station tobe developed by Produceras per RERC regulationdated 23.1.2009 andamendments.

• Consumption of power forCaptive use to be exemptedfrom Electricity Duty @ 50%for a period of 7 years fromCOD

• Incentives available toindustrial units underscheme administered byIndustries Department to beavailable to Developer.

• Allowed to use water fromWater ResourceDepartment (WRD) forpower generation.

• Modification(s) if any, in theexisting canal system to bedone by WRD at the cost ofpower producer.

• Ground water department toaccord similar status toBiomass power Plant using"air cooled technology" asgranted to drinking waterscheme while granting NOCfor drilling bore well/ tubewell for fulfil l ing waterrequirement of the projects

• No other Biomass PowerProjects to be permittedwithin the reserved area ofexisting/ approved/ earlierregistered projects.


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ector in IndiaSl. Name of State/ Punjab Rajasthan Tripura UttarakhandNo Description (From RE policy of State) (From RE policy of State) (From RE policy of State)

• As per RERC order dated17.08.2009, Biomassproducers to be allowed touse fossil fuel (such as coal,lignite, natural gas,municipal waste) up to 15%during the lean period insome years.

• Incentives for earlycompletion as per RERCtariff order.

• RREC to be Nodal Agencyfor facilitation of PPA/ WBA,loans from IREDA/Institutions, allotment ofland, water allocation,statutory clearances etc.

• Security Payment - Forprojects up to 1MW - Rs.20,000/- and more than1MW- Rs. 50,000/-

• Committee headed byChief Secretary to accordapprova ls /c learancesthrough a single windowmechanism.

completion of the projectwithin the prescribed timeframe.

SUMMARYOF

STATE POLICIES, ORDER WISEFOR

DEVELOPMENT OF POWER FROMRENEWABLE ENERGY SOURCES


ANDHRA PRADESH NEW WIND POWER POLICY

DATED: 11-04-2008 AND AMENDMENT DATED: 09-09-2008

Sl. Description SummaryNo.

1 Order No. G.O. Ms. No. 48 and Amendment No. G.O. Ms. No.99 dated 09-09-2008

2 Potential of Wind Energy 2100 MW

3 Applicability From the date of Issue of Order

4 Operative Period 5 years from the date of the policy unless superseded or modified by any otherorder

5 Applicable to • All new approvals, PPAs, Wheeling Agreements etc.

• Existing PPA and Wheeling Agreements for existing projects to begoverned by the old agreements

6 Nodal Agency for Approval Non-Conventional Energy Development Corporation of Andhra Pradesh Ltd.of Project up to 20 MW (NEDCAP)

7 Eligible Developers Wind Farm developers, Wind Energy Generator Manufacturers, GovernmentOwned Companies, Private Companies, Joint Venture Companies and PrivateInvestors.

8 Eligible Wind Farm (WEGs) • WEGs should be new and match the specifications issued by “Centre forWind Energy Technology” (C-WET)

• Minimum Turbine Capacity of WEGs to be not less than 225 kW

• Eligible developers to enter in to agreements as per guidelines issued byAPERC

9 Tariff • Rs 3.50 paise/unit for 10 years from COD subject to approval of APERC.Tariff from 11th to 20th year shall be fixed by APERC

• DISCOMS shall have the first right of refusal of power purchase after 20th

year of COD

• Tariff beyond 20th year shall be as mutually agreed by both the parties

10 Allotment of Government Land (i) Order issued Vide G.O.Ms. No. 19 dated 16-03-1996 for allotment ofGovernment land to private developers at market value to continueprovided the land is used only for setting up of Wind Farm

(ii) Memo. No. 71022/Asn.1(1)/97-1 dated 04-11-1997 and Memo. No. 2742/Asn.1(1)/2005-1 dated 03-08-2005 from Special CS to Governmentauthorizes District Collector to handover the land in advance possessionto the developer subject to:

• Developer to deposit cost of land as fixed by the Collector

• Developer to give an undertaking that they would pay enhancedcost in case it is advised at the time of issue of alienation order

• Each eligible developer may be allocated available Government landto harness up to maximum 200 MW of wind power initially

• After Commissioning 100 MW capacity wind farms in the first stagein the allocated Government land.

• Government may lease land for another 100 MW capacity wind farms

• In case of projects being set up for own/captive use or third partysale, Government land may be made available on higher priority

• If the wind farm is setup in private land, the eligible developer toprocure land from landholder on their own


11 Use of Power Produced by • For captive consumption or sale to a third party or to DISCOMSDevelopers • PPA to be entered with DISCOMS as per power purchase guidelines and

wheeling agreements with AP TRANSCO or / and DISCOMS as per OpenAccess Regulations and other guidelines issued by RegulatoryCommission

12 Duration of PPAs 20 years

13 Wheeling Agreements As per Open Access Regulations

14 Power Evacuation Facilities Developer to bear the entire cost for interconnecting the wind farms with thegrid and delivery of power as per orders, rules regulations and terms & conditionsapproved by the Commission

15 Wheeling • For transfer of power by the developer for its own captive use or thirdparty sale, it shall be governed by Open Access Regulations

• Balancing and settlement of energy and demand to be as per Balancingand Settlement code as approved by the Commission

• Third party sale to be permitted only to HT-1 category consumers ascategorized in Tariff Orders issued by the Commission

• Concessional wheeling and transmission charges in kind @ 5% of energydelivered in to the grid (including T&D losses) for captive use or thirdparty sale to be given to developer subject to approval of APERC

• For captive consumers or third party consumers, the minimum billingdemand shall be 60% of the contracted maximum demand during June toSeptember

16 Banking • Wind power projects are not eligible for banking of energy

• Energy generated by captive generation plant not consumed during thebilling month, would be deemed to have been sold to respective DISCOM

• DISCOM to pay for such un-utilized energy @ 85% of the tariff as amended

17 Sharing of Carbon Credits • Developer who sells energy to DISCOMS shall share carbon credits withDISCOMS

• Developer to retain 90% CDM benefits and pass on 10% benefit toDistribution Company subject to orders of the Commission

18 Facilitation by NEDCAP NEDCAP to facilitate

• Required clearances for the project at State and Central Government levels

• Grant of loans by IREDA/PFC/REC and other term loan Agencies/Commercial Banks

• Regulate the allotment of projects


ANDHRA PRADESH GUIDELINES FOR ESTABLISHMENT OF MINIHYDEL POWER PROJECTS ALONG VAGUS AND STREAMS

ORDER DATED: 11-07-2007


1 Order No. G.O. Ms. No. 165 dated 11th July, 2007

2 Establishment of Mini Hydel “No Objection Certificate” for setting up of Mini Hydel Stations on Major CanalsStations on Major Canals and and Rivers viz., Krishna, Godavari and Pennar or other rivers as notified by theRivers Government, not to be entertained

3 Establishment of Mini Hydel Government to consider the proposal subject to the following conditions:Stations along Vagus andStreams

(A) General Conditions:

(i) Royalty Charges To be collected from the developer as a percentage of energy generated ortaking the actual generation of power from APTRANSCO

(ii) Violation of Agreement • Stringent punishment for non-compliance or deviation from conditions ofagreement

• Could entail the cancellation of the permission of project

• Government/Department would not be responsible for loss of capitalinvestment of the developer even when the investment is financed

(iii) Event of Adverse affect • For any adverse affect to upper/lower riparian rights or public, thedue to the Project consequential financial implications to be borne by the developer

• Flow pattern in the river/stream/canal not to be disturbed

• Diversion of water in to project shall in no way affect the upper/lower riparianrights to any extent

• Control of gate operation to be vested with Irrigation Department

• During lean flow or any other problem, modalities of generation of powershould be as directed by the Irrigation Department

• Developers would have no right to vary proportional Head

• During reduction in flows, power generation to be stopped

• Developer shall not resort to storage of water, as it comes, to go downstream of the project

• In case of violation developer to pay panel charges in addition to royaltycharges as imposed by the Department

• Department may order closure of the project and cancel the permission atthe cost of developer

(iv) Revision of Project Report Developer may revise the project report in case it is observed that the generationof a higher capacity is possible

(v) Flow of Water Government not to guarantee the continuous flow of water

(vi) Stipulations of AP • Developer to ensure that all effluents, discharge of water etc to be inPollution Control Board accordance with APPCB(APPCB) • Developer to furnish report every alternate month on the quality of water

after use by the power station

(vii) Automatic Control to In event of shutdown or tripping of generating units, by-pass arrangements withlet out Water automatic controls to be provided to let out water to the down stream

(viii) Regulation of Water • Water to be Regulated by the Irrigation Department


• Developer has no rights to operate the canal for utilization of water

• Developer shall not use water except for power generation

• Government may examine all aspects before releasing the water

• Even during flow in the canal, Irrigation Department reserves the right todeny the water to the project and pass orders to let the water through By-Pass Arrangements

• Irrigation invariably takes priority over power generation

(ix) Utilization of Water • Water requirements for drinking water and agriculture shall have priorclaim for utilization of water

• Developer to plan generation of power accordingly

• Developer shall not have a superior claim on the utilization of water

(x) Benefits of the Project Developer shall not assign, under-let, or part with the possession and benefit ofthe project or liberties and privileges or any part thereof without prior writtenconsent of the Government

(xi) Addition/Replacement Firm shall not install/add/replace/modify any machinery or other installationof Machinery without written consent of the Government

(xii) O & M of the Project Developer to be responsible for design, construction and O & M and allcomponent works at his cost and risk

(xiii) Canal Operational Plan • Department to supply water as per the canal operational plan which is atthe sole discretion of the Government

• Department to release water in pulses, resorting to on-off schedule, whichis flexible

• Developer to abide by the above plan and shall not resort to storage

(B) Technical Conditions:

(i) Lining Cement concrete lining of inlet and tailrace channels based on site conditions

(ii) Sluices Off-take sluices at the off-take point in the streams and rivers to be as per designsapproved by Irrigation Department

(iii) Provision of Flow Meters • Developer to provide and maintain flow meters at the point of inlets ofapproach channel and at the tailrace channel for measurement ofdischarge for water regulation

• Higher of the above two recordings to be considered for calculating theroyalty charges

• Data generated through the flow meters to be transmitted to the controlroom of the Irrigation & CAD Department on daily basis

(iv) Operational Plan of Project • Operational plan to be evolved and got approved by Government duringflood situations and other natural exigencies

• APTRANSCO to provide power evacuation facilities to the developer atdeveloper’s cost or developer may execute power evacuation facilities assanctioned by APTRANSCO/DISCOMS at their cost

(v) Inspections and Tests • Department shall reserve the right to conduct inspections and tests at alltimes

• Statutory inspections to be done by the department before charging thewater conductor system

• Developer to provide free access to Upstream and Downstream pointsin canal by constructing Bridges on canals and provide independentnecessary approaches for movement of vehicles on canal and tooperate the inlet to the project, diversion gates, independently bydepartment engineers


(vi) Cost Towards Modification • Developer to bear the cost towards modifications, if any, to the streamsystem and its structures that become necessary on establishment ofproject

• Developer to construct and maintain protection bund 1.50 m above MWLon upstream up to where the ground levels are above bund levels

• Developer to take up necessary protection works for the banks ondownstream at the confluence of tailrace channel with mainstream

• Developer to maintain canal on both upstream and downstream for a lengthof about 5 km for canal based project at their cost

• Developer to provide sluice in the weir/diversion structure as scouringsluice for allowing lean flows

(vii) Safety Clearance Developer to demonstrate on the safety and functioning of by-pass system andobtain clearance from the Department before commencement of powergeneration every year

(viii) Physical and Financial • Developer to be responsible on physical and financial terms and all suchcases

• Department to quantify the physical and financial loss caused onestablishment of the project and its decision shall be final and binding onthe developer

(ix) Execution of Works • Developer to do the works as may be suggested by the Department at hiscost and within the time limit fixed by the department

• Decision of Superintending Engineer, Irrigation shall be final on all suchmatters

• Failure to execute the works entails cancellation of “No ObjectionCertificate”, forfeiture of deposit

• Expenditure incurred by the department in maintaining the river/streamcourse and the river banks including protection works is recoverable fromthe developer

• Developer to maintain the river/stream course and river banks includingprotection works at his own cost

(x) Operation of the Project • Operation of schemes shall not be detrimental to the water regulation ofenvisaged ayacut and flows to lower down reservoirs

• Irrigation & CAD Department shall have the right to cancel the permission

(xi) Selection of Developer By biding process


ARUNACHAL PRADESH SMALL HYDRO POWER POLICY- 2007

DATED 24th JANUARY, 2008 & AMENDMENT DATED 13th OCT. 2008


1 Order No. PWRS/HPD/W-1305/2005 dated 24th January, 2008. And Amendment orderNo: PWRS/W-1305/2005/ Pt-I dated 13th Oct. 08

2 Title “Small Hydro Power Policy, 2007”

3 Policy Objective • Private participation in development of Small Hydro Project with certainattractive incentives

• Formulation and notification an of action plan for small hydro powergeneration with players such as private entrepreneurs, cooperativesocieties and NGOs

4 Classification of SHP Projects Category - I : Projects with installed capacity of above 1 MW up to 25 MW tooperate in both Grid and Isolation mode.

Category - II : • Projects with installed capacity of above 100 kW up to 1MWto be designed for stand alone mode with or without connectivity to grid.

• Power supply to the consumers to be at High Voltage or Low Voltage

Category - III : Projects of up to 100 kW shall be designed for stand alone modewithout high tension systems.

5 Who Can Invest in SHP Preference in allocation of Projects to be given to

• Local entrepreneurs with sole proprietorship /NGOs/Co-operative Societies/ Joint venture concerns or

• Consortium of companies in which one or more than one partners to beArunachalee.

• Any registered company from outside the State with differentiation in freepower, upfront money and processing fee with that of local entrepreneurs

6 Commercial Categories of (A) Independent Power Producers (IPPs):

Power Producers • To sell power to the State power Utilities / State Government under aPower Purchase Agreement (PPA) at a pre-determined Tariff as definedby the SERC or the State Government.

• Developer to be provided with open access facility for which a separateagreement with the State Transmission Utility (STU) at a tariff determinedby the SERC / State Government.

(B) Merchant Power Producers (MPPs):

• To sell power to limited number of permitted pre-determined third party(or parties), preferably heavy power consuming industries set up withinthe State.

• MPPs to be provided with open access facility for which agreement hasto be settled with STU

• State is not bound to purchase Power from MPPs. However, the Statereserves the right to purchase power at a price as may be determined bythe State/SERC.

• MPPs shall not be eligible for retail sale of power to general consumers toreplicate the function of a DISCOM without a license.

(C) Captive Power Producers (CPPs):

• Power producers shall produce power only for their own consumption

• CPPs shall be treated at par with that of MPPs as far as the other conditionsare concerned.


7 Qualifying Criteria • Developers to furnish an undertaking on legal papers committing to engagethe technical personnel, either as permanent employees or partners inthe organization, at the time of submission of application for allotment ofprojects.

• Qualifications of personnel to be employed for various category ofprojects are detailed in the policy

8 Projects Identification and • Project sites for development to be identified and notified by the StateAllocation Government, or

• A shelf of projects shall be maintained by the State Government forallocation.

• Developers may approach the State Government with self-identifiedprojects with full pre-feasibility report (PFR) for development on conceptto commissioning basis.

• Government shall allocate Projects to the eligible applicant for developmenton BOOT (Build, Own, Operate and Transfer) basis for a period of 50 years.

9 Process of Allotment -Application for Allotment

(i) Category – I Projects • Managing Director (MD), Hydro Power Development Corporation ofArunachal Pradesh Ltd., Itanagar

• Chief Engineer (CE), Department of Hydro Power Development, Itanagar

(ii) Category – II & III Projects Director, APEDA, Itanagar

(iii) Earnest Application fee Non-refundable demand draft of Rs. 5000 per application drawn on State Bankof India, payable at Itanagar in favour of MD, CE and Director APEDA

(iv) Selection of Developers As per eligibility and qualification criteria

(v) Processing Fee and Selected Developer to deposit the Processing fee and Upfront Premium (bothUpfront Premium non-refundable) at the time of signing of the Memorandum of Agreement (MoA)

with the State Government, failing which, the State Government shall have rightto re-allocate the project to any other eligible developer

Category of Hydro Project Processing fee Rs. Minimum Upfront(per project) Premium payment

Rs. (per MW)

Category — I

(a) > 10 MW up to 25 MWIndigenous Developers 50,000 20,000Non-indigenous Dev. 1,00,000 40,000

(b) > 5 MW up to 10 MWIndigenous Developers 35,000 15,000

Non-indigenous Dev. 70,000 30,000

(c)> 1 MW up to 5MWIndigenous Developers 25,000 10,000Non-indigenous Dev. 50,000 20,000

Category — II

>100kW up to 1000kWIndigenous Developers 15,000 NilNon-indigenous Dev. 30,000 10,000 (per project)

Category — III

Up to 100kWIndigenous Developers 10,000 Nil

Non-indigenous Dev. 20,000 Nil


Note: The local entrepreneurs / Indigenous developers /NGOs/Co-operativeSocieties, if applies under Joint venture or Consortium of Companies, thechargeable Processing Fee and Minimum Upfront Payment will be that of Non-indigenous Developers.

(vi) Upfront Premium Not to form part of the project cost

(vii) Preference to Indigenous In case of more than one applicant meeting the eligibility and other criteria,Applicant preference to be given to indigenous applicant of the district in which the project

is located

(viii) Memorandum of Project completion time and COD as per proposal or agreed by the GovernmentAgreement (MoA) to be incorporated in MoA

10 Single Window Selection • A High Level Selection Committee to examine the proposals of theprospective developers and submit its observations / recommendationsto the State Government.

• Selected developers to sign the (MoA) within 30 days from the date ofissue of Letter of Selection.

11 Statutory Clearances • Within 12 months from the date of signing of the MoA, the selecteddeveloper shall complete all post allotment obligations includingpreparation of Detailed Project Report ( DPR), possession of the projectsite and obtaining all statutory clearances of the State Government

• Developer to submit DPR with all clearances to the Secretary (Power), toenable State Government for examination and approval within threemonths.

• DPR of the selected developer submitted for System Coordination andTechno-Economic Clearance (SC&TEC) to be scruitnised by StandingCommittee on Technical and Economic Affairs

• If project is not found feasible by the Standing Committee on Technicaland Economic Affairs, the State Government, upon mutual understandingwith the developer, shall terminate the agreement and the upfront paymentshall be refunded to the developer without interest

12 Time Schedule for • Upon failure of the developer to commence work at the project site withinCommencement of Work 18 months from the date of signing of the MoA, the agreement shall stand

automatically terminated.

• Upfront payment shall be forfeited.

13 Compliance to Statutory • Statutory regulations of the Central Government / CERC and the StateRegulations by the Developer Govt. / SERC while implementing the project.

• Provisions of the Forests (Conservation) Act, 1980.

• Developer to pay the cost of raising the compensatory afforestationincluding payment of the Net Present Value (NPV) of the forests landbeing diverted for non-forest purpose under relevant Forests(Conservation) Act, 1980 and Environmental Protection Act, 1986.

• To labour welfare under the Labour Laws/Acts during the implementation/ operation and maintenance of the Project.

• The provisions of the Electricity Act 2003 and other laws and rules framedunder such laws shall apply on the Projects under this policy.

14 Land Acquisition • Land for project and other allied infrastructures shall be leased to thedeveloper against payment of land revenue as per relevant tariff of theState Government.

• The period of lease to be continued till the BOOT period of the project.

15 Maintenance of Law and Order Is the responsibility of the State Government in and around the project area forsecurity and safety of personnel and properties of the project.


16 Rehabilitation and Rehabilitation and Re-settlement works for displaced persons due to the projectRe-settlement shall be financed by the developer, as per relevant law/guidelines of the

State.

17 Equity Participation The State Government shall reserve the right of equity participation on mutualunderstanding with the developer through its agency on Joint Venture.

18 Sale of Power • IPP can enter into contract to sell power to the State Government througha PPA to be signed within 6 months after signing of MoA at a tariff 10paise lower than the tariff as determined by the CERC/SERC or the StateGovernment for sale outside the State.

• Point of sale of power to be at the place of injection to the State grid,unless incorporated in the PPA.

• Metering point shall be located at the point of sale defined in the PPA.

• Developer under IPP/MPP/CPP category may be allowed after priorapproval of the Government to sell power outside the state only under aspecial license in the event of surrender of contracted power.

• Similar licensing can also be considered by the state in the situation ofclosure of the industries forcing the project to idle.

• State shall reserve the right to purchase the idle power from MPP/CPP.

• The State Government shall open Letter of Credit (LC) in favour of theDeveloper in State Bank of India, Itanagar for an amount which would bespecified in the PPA for regular transactions of power purchased from theIPP/MPP/CPP etc. as the case may be.

19 Banking of Power Not allowed without prior permission of the State Government.

20 Transmission System and • STU and the developer to enter into an Agreement about Power EvacuationEvacuation System and open access facility before the final investment decision.

• Letter of Comfort on Transmission (LCT) can be obtained from the STUbefore submission of application/ expression of interest (EOI) for allotmentof the project.

• Transmission System which forms a part of the project to be specified inthe LCT.

• Developer to bear the cost of transmission network from the project to thepoint of sale.

21 Wheeling Charges • Transmission system and other allied facilities will be made available toall developers for Open Access and Wheeling of Power.

• Developers to enter into an Agreement with the STU for payment ofwheeling rate as may be determined by the SERC/State.

22 Transfer and Sale of Not allowed without the prior permission of the State GovernmentPower Plant

23 Free Power and other Charges • As an incentive for timely completion, there shall be a moratorium of free power.

• Free power concessions to be made at the concessional rates.

• Moratorium period to be counted from the COD.

Category of Hydro Project Moratorium Period Rate of free powerfrom scheduled COD after Moratorium

period up to50th Year

(a) > 10 MW to 25 MWIndigenous Developers One Year 5%Non-indigenous Dev. One Year 10%

(b) >5 MW to 10 MWIndigenous Developers Two Years 2.5%Non-indigenous Dev Two Years 8%


(c) > 1 MW to 5 MWIndigenous Developers Three Years NilNon-indigenous Dev Three Years 5%

(d) Up to 1000 kWIndigenous Developers Nil NilNon-indigenous Dev. Nil 2.5%

Note: The local entrepreneurs / Indigenous developers /NGOs/Co-operativeSocieties, if applies under Joint Venture or Consortium of Companies, thechargeable Free Power will be same that of Non-indigenous Developers.

24 Force Majeure • State Government not responsible for any losses arising out of the forcemajeure situation, i.e., earthquake, flood, fire, external invasion, civilcommotion, landslide etc.

• No claim by the developers on above account shall be entertained by theState Government.

25 Incentives by State • State Govt. shall facilitate in obtaining subsidies, tax concession etc. asGovernment may be available from the Central Government for development of SHP.

• State Government shall allow 50% share of Carbon Credit benefit fromCarbon Trading under CDM.

• Indigenous tribal entrepreneurs shall be exempted from supplying freepower to the State Govt. for projects up to 5 MW capacity.

26 Intellectual Property Right In the event of transfer of Intellectual Properties related to the project design,data, DPRs, etc. the cost of such properties shall be payable to the owner ofsuch properties by the party/(parties) to whom it would be transferred.

27 Employment Opportunities • Developer to spell out the employment opportunities for the bonafideArunachalees in the application. This shall be one of the selection criteriafor allotment of project.

• Endeavours shall be made by the developers to employ local ITICertificate holders during the construction, operation and maintenanceof the projects. They should also be ready to take technical manpoweron deputation from the State Government Departments andOrganizations.

28 Monitoring of Projects Government shall have the right to monitor physical and financial progress ofthe projects on monthly/quarterly/half yearly basis through a Technical Committeeheaded by the Secretary (Power and NCER), Govt. of Arunachal Pradesh.

29 General Conditions • Developers shall be liable to pay all the statutory levies viz. royalty onforest products, river bed materials, duties and taxes unless specificallyexempted.

• Allotment of a project to a developer does not automatically confer himany territorial rights on both upstream and downstream sides of the projectarea.

• Developers shall facilitate using of tail race water for Agriculture /Horticulture purpose wherever it is found feasible and necessary.

• State Government shall have the right to use the tail race water for anyother purpose including development of Hydro Projects on its own or allotto some other party.

• Developers shall make all necessary protective arrangements on upstream,downstream and tail race areas of the projects site to avoid soil erosionand damage to properties.

• Developer shall pay an amount worked out at the rate of 1 paise per unitof power sold during every financial year to the State Government forraising local area development fund effected by the Project (s).


GOVERNMENT OF ASSAM POLICY FOR SMALL HYDROPOWERDEVELOPMENT

DATED MARCH 2007


1 Order No. PEL.196/2002/199 dated March 2007

2 Title Policy for Development of Small Hydropower (SHP) 2007

3 Identified Potential for Small 117MWHydro Power

4 Applicable to SHP up to 25 MW

5 Participation Independent Power Producer (IPP)/Users Society to bid for identified projects.

6 Prequalification Pre-qualification shall be based on the balance sheets, annual reports, pastexperience, financial and technical capacity etc. Prequalification criteria shallbe specified in Bid Documents.

• Weightage to be given for financial capacity, technical capability and pastexperience etc.

• Merit list to be prepared based on pre-qualification criteria of the applicantswho bid for the identified projects.

7 Pre-feasibility Studies • List of identified projects with estimated capacities available with Govt.(PFR)/DPR • ASEB/GENCO to prepare PFR/DPR.

• Evacuation arrangements to be specified in the PFR/DPR.

8 Period of Project • Thirty five years from the date of award

• To revert back to Govt. of Assam (GOA) or extended further on mutuallyagreed terms after 35 years

9 Process of Allotment (A) On the basis of competitive bidding and direct allotment to pre-qualifiedIPPs /user society depending upon the preparedness of the site

(B) Through competitive bidding for which PFR/DPR is available :

• Through advertisement

• Applications to be accompanied with non refundable draft of Rs.25,000 for projects below 1MW ,Rs. 1lac for 1to 5MW and Rs.2lacabove 5MW payable to ASEB/GENCO.

• All Bidders will be subject to pre-qualification

• Pre-qualified Bidders to be provided with PFR/DPR.

• Bids shall be invited for minimum premium of Rs 1 Lakh/MW payableupfront to Govt. of Assam.

• Project to be allotted to the highest bidder

• Successful Bidder to deposit premium within 2months or any otherspecified period.

• Successful bidder to be permitted to provide 50% of the bid amountin excess of the threshold as a bank guarantee encashable at thetime of actual or scheduled financial closure, whichever is earlier

• Bidder to deposit full amount over and above the threshold amountat the time of actual or scheduled financial closure, whichever isearlier

• In case of identical premium for any site, a gradation list based onpre-qualification criteria shall be the basis for allotment.


(C) Projects for which PFR/DPR is not available to be allotted to pre-qualifiedbidders :

• Through advertisement

• Applications to be accompanied with non refundable draft of Rs.25,000 for projects below 1 MW ,Rs. 1lac for 1to 5 MW and Rs.2lacabove 5 MW payable to ASEB/Sucessor Company


• Merit list of bidders to be prepared according to pre-qualificationcriteria and projects allotted to bidders

• IPPs/Users Soceity may propose any feasible potential site withverifiable feasible PFR/DPR to Govt. for allotment

• Application fee and bid amount to be payable as “B” above

• Projects to be allotted on first cum basis

10 Facilitation to be provided by • For efficient interaction with other Govt. Departments, the GOA shallthe Government declare ASEB/ Successor company as Nodal agency subsequently ASEB/

GENCO shall constitute a technical body and nodal officer for clearing ofproject proposal.

• Application to be disposed of within a period of 60 days.

• IIPs / Users society to obtain all the requisite clearances.

• Documents/clarifications to be submitted by IIPs / Users society to theNodal Officer for clearances from the respective Departments within 30days.

• In case of no intimation within the stipulated time, necessary clearance tothe project deemed to be granted.

11 Allotment of Land • Land to be allotted/ sold at premium/lease, case wise and form part of biddocument.

• A steering committee shall be constituted by GOA to provide single windowclearance for the project.

• A high power committee headed by Chief Secretary shall be constitutedby GOA for redressal of problems and policy matters for the project

12 Sale of Power • HT consumer upto 5 MW within Assam

• Local grids which are not connected to ASEB/Successor Company maingrid

• To rural power distribution entities

• Any consumer outside the state or to ASEB/Successor Company

• All sales to be approved by the AERC.

• Group of rural consumers to any rural interior area in a stand alone anddistribution system subject to fulfillment of requirements of AERC.

13 Wheeling Charges • Infrastructure facilities of ASEB/DISCOMs/TRANSCO to be made availableto all IPPs/ Users society for wheeling the generated energy

• Wheeling charges for bulk purchaser/third party consumer inside or outsidethe state to be determined by AERC

• No wheeling charges are applicable for sale to ASEB/Successor Companyin case power is supplied to ASEB/DISCOMs

• ASEB/DISCOMs/TRANSCO to prepare a standard wheeling and bankingagreement which will be made available prior to any bidding for projects,where applicable


14 Evacuation of Power • ASEB/ GENCO to determine the evacuation facilities and the same wouldbe specified in the application form

• ASEB/ GENCO to carry out the implementation of evacuation facilities atcharges to be mutually agreed.

• Cost of transmission lines in excess of 5 kms to be borne by the IPPs/user society and ASEB/ GENCO on mutually agreed terms and conditions

15 Banking Allowed within fixed period span of 6 months

16 Despatch Priority for despatch in to the Grid ahead of merit / any other source of supplysubject to any overall restrictions on the proportion of power that may be boughtfrom such sources, which may be imposed by the Govt. / Regulator.

17 Royalty/ Duty/ Taxes • Project up to 5 MW – No royalty provided entire energy generated is soldwithin the state of Assam

• Above 5 MW, a royalty @Rs.0.25 per unit of net energy generated will bepaid to GOA by IPPs/ Users society. To be reviewed after 5 years

• For power projects on irrigation canal fall/ barrages/ dams, a water [email protected] per kWh per year shall be payable by IPPs/ User society to theIrrigation Deptt. or otherwise as specified by the GOA

• Electricity duty as per law will apply

• No further levies, taxes, charges to be levied for a period of 10 years fromthe date of this policy

18 Incentives by Central/ State • No entry tax will be levied by the GOA on power generation & transmissionGovernment equipments except on building materials for projects

• Finance and physical incentives for SHP development available fromMNRE, GOI shall be facilitated /extended to IPPs/ Users society

19 Transfer of Allotment Free transfer of shares in the companies allotted projects.

20 Time Limit (i) IPP shall sign a MOU with Nodal Agency for development of the projectwithin a month of the issue of allotment letter by GOA

(ii) IPPs/User society shall submit applications for statutory clearancesafter carrying out confirmatory survey and investigation within 6 monthsfrom the date of allotment or any other period deemed fit by GOA.Failure to do so within the specified time shall be treated as non-compliance

(iii) Nodal agency to accord approval of DPR/application within two monthsfrom the submission. IPP to enter in to an implementation agreementwith the nodal agency within one month from the date of approval of theproject.

(iv) IPPs to achieve the financial closure within 12 months from the date ofreceipt of all statutory approvals & clearances.

(v) Project to be made operational within 36 months from the date of receiptof all statutory approvals & clearances.

(vi) Failure to reach milestones (i & ii above) will result in automatic cancellationof allotment of site and forfeiture of upfront premium amounts. Nocompensation would be payable to IPPs/User society in such cases.

(vii) Failure to reach milestones (iii above) would result in a liability to pay apenalty by IPP to Govt. of GOA.

(viii) Penalty to be computed at the equivalent royalty revenue that would havebeen payable to GOA had the project met the milestone.

(ix) In case the project enjoys an exemption from royalty in the initial years,the duration of royalty exemption would be reduced by period of delay.


21 Surrender of Allotment • In case the project is not found techno-economically viable on completionof DPR, IPP/User society may surrender the allotment within the stipulatedtime frame to GOA.

• On surrender, premium amount paid in excess of threshold premium tobe refunded back to IPP/User society.

22 Role of ASEB/GENCO/ • Preparation of the standard wheeling and banking agreement draft.DISCOMs/TRANSCO • Determination of evacuation requirements and overseeing banking,

dispatch and royalty arrangements.

• The above to be drawn before six months of commission of a SHP

23 Role of ASEB/GENCO • Preparation of pre-feasibility studies, carrying out the bidding process andmonitoring of the development of allotted projects / delivery as per timeschedule.

• ASEB/GENCO will not participate in bidding process. However, afterallotment, upon request from the IPP/Users society, ASEB/GENCO mayconsider participating as a minority partner or perform certain tasks forthe bidder on a consultancy basis.

24 Role of Irrigation Department • Release of water in canals will be under control of Irrigation Deptt.GOA • IPPs/Users society will be allowed to utilize acquired canal land for power

generation on lease for a period of 35 years.

• IPPs/Users society to obtain consent from Irrigation Department for designof works which have bearings on safety and operation of canals

• Cost of remodeling/improvement of works of existing irrigation schemes/projects due to SHP projects shall be borne by IPPs/Users society.

25 Regulatory Over Sight Aspects of this policy that require regulatory approvals would be subject to suchapprovals in the manner approved by the Regulator.

26 Due Diligence Applicant / IPP/Users society shall be responsible for carrying out due diligencewith regard to his compliance responsibilities under various applicable central /state / other laws, rules and regulations and ensure compliance with the same.

27 Power to Resolve Difficulties Vested with the Government of Assam


BIHAR RENEWABLE ENERGY DEVELOPMENT AGENCY

POLICY GUIDELINES FOR PRIVATE PARTICIPATION FOR DEVELOPINGNON CONVENTIONAL ENERGY SOURCES

Sl. Item DetailsNo.

1 Title Policy Guidelines for Developing Non-Conventional Energy Sources

2 Operative Period for 5 Years with immediate effect. Incentives

3 Eligibility Any Industry, Institution, Private Agency, Partnership Firm, Consortia, Panchayat,Co-Operative Or Registered Society.

4 Land Acquisition • Government land, if available, at the site selected by the developer maybe leased to him

• Government may assist in the acquisition of non-government private land.

• Alternatively, the developer may himself purchase private land, dulyinforming the Government for the use to be made of the land.

5 Process of Allotment • The Government of Bihar (GoB) or Bihar State Electricity Board (BSEB) /Bihar State Hydroelectric Power Corporation (BSHPC)/Bihar RenewableEnergy Development Agency (BREDA) may invite offers for suitable sites/projects for development in private sector. The offers will be scrutinizedby the GoB and their decision shall be final.

• Interested developers may also, on their own, select suitable sites/projectsand submit proposal to the Government for approval.

• For projects up to 5 MW capacity, applications/proposals in specified formand conforming to guidelines from entrepreneurs, to the GoB will besufficient. No approval/license will be needed.

• For projects of higher capacities, approval of Energy Department will benecessary and decision on such applications will be taken within 3(three)months .

• Developer to implement the project (including incurring 10% expenditureof the total project cost) within six months of approval/information of theproject and allotment of land, otherwise the agreement could be terminatedand the site allotted to another applicant.

• Authorities to enter into agreement within one month of application

6 Taxes and Duties Developers to pay all taxes and duties or any other levies, etc. to Central orState Government as per statutory rules in force.

7 Power Purchase and Pricing • Purchase/sale price of power may be fixed by the Bihar ElectricityRegulatory Commission.

• The developer and the third party, to whom electricity is wheeled throughthe BSEB grid, will be allowed to draw energy for their consumption duringmaintenance/shut down period of the project as per the prevalent BSEBtariff at that point of time.

8 Sale of Power • No restriction on power generation capacity or supply of electricity to thegrid.

• To State grid / BSEB

• Developer may sell/utilise generated power at the place of generation orat any other place for captive use.

• Developer may be given license for distribution of power in a specifiedarea.


• To third party/private consumers through own transmission and distributionsystem or wheel through the BSEB systems on payment of appropriatewheeling charges .

• Third party must be an H.T. consumer of the BSEB.

9 Transmission System and • In case Developer proposes to sell full or part of its generation to the gridEvacuation of Power or use the grid for wheeling power to third parties the developer will design

the system at their own cost, such that interfacing with the State grid/BSEB grid is done as per the latter’s specifications and requirements.

• The entire cost of project, transmission system for evacuation of power tothe nearest State/BSEB grid/sub-station including all metering & theprotective instruments shall be borne by Developer.

10 Wheeling BSEB to extend the facility of wheeling the generated power through itstransmission and distribution system as per agreed terms with Developer

11 Incentives by State • The projects will be entitled for availing facilities under the policies ofGovernment the Government of India/ GoB.

• BSHPC/BREDA will provide necessary information and assistanceregarding identification and selection of feasible sites.

• Loans as per guidelines and incentive/schemes of the Government of India and/or GoB, Indian Renewable Energy Development Agency(IREDA) and MNRE will be offered/available

• Incentives/concessions to be available as applicable to new Industrial unitsas per the guidelines of the Industrial Policy of GoB.

• Concessions as given to industrial units in backward areas will be availableto the projects in backward areas.

• Developer will be allowed to use canal water-fall or river water flow withthe consent of the Water Resources Department, GoB for power generationfrom mini/micro hydel schemes.

• Water to be released based on Irrigation demand.

• Developer to give price equivalent to 10% of the power generated to theState Government in lieu of the water rights/cess.

• If feasible, and water is available at source, developer can develop it athis own cost paying price equivalent to 10% of power generated toGoB

12 Monitoring of Projects • A State Level Advisory Council headed by Secretary Energy to beconstituted to monitor the progress, implementation and operation ofprojects.


GOVERNMENT OF CHHATTISGARH

CHHATTISGARH STATE RENEWABLE ENERGY DEVELOPMENT AGENCYNON-CONVENTIONAL ENERGY POLICIES


1. Order Notification No. 38 dated April 8, 2002

2. Title Policy Directives on Incentives to Units Generating Power From Non-Conventional Energy Sources.

3 Eligibility • Every unit, organisation or Private agency setting up RE projects shall beeligible for incentives.

• Parties may set-up units either themselves or as a joint venture withChhattisgarh State Renewable Energy Development Agency, (CREDA).

4 Process of Allotment • Developers to submit their application to Chief Executive Officer (CEO),CREDA with a copy to Secretary, Chhattisgarh State Electricity Board(CSEB) for permission.

• After approval by CEO, CREDA, the generating unit and also the user unitto enter into agreements with CSEB.

5 Land Acquisition • Govt. land, if available, will be leased out to the party, keeping in viewtheir minimum requirement, by Industries Department Govt. of Chhattisgarh(GoC), as per their norms.

• In case of non availability of Govt. land, private land will be acquired bythe Govt. and made available to the party at acquisition cost.

• No service charges will be payable for use of the land.

• Permission not required for diversion of the land.

• Party will have to submit information regarding use of land to the concernedDistrict Collector

6 Sale of Power • There will be no restrictions on generation capacity.

• Parties may use the power generated themselves at the point of generationor at any other place or sell it to a third party after obtaining permissionfrom GoC, CSEB.

• CSEB may purchase the power generated by these units as percircumstances and it’s requirement.

• Purchase of Power by CSEB at Rs. 2.25 per unit.

• For sale of power to a third party, the rates will have to be settled mutuallybetween the generating party and the third party which would purchasethe power.

• Meters and equipments required for the sale of power to be installed bythe party at his cost and at the points decided by CSEB.

• These meters and components will have to be duly approved and testedby CSEB.

• Electricity generated & sold to third party or consumed by the party itselfwill be exempted from payment of electricity duty for five years if capacityof power plant is below 25 MW.

• Exemption will be for three years if capacity of the power plant is 25 MWor above.

7 Transmission System and • Transmission/distribution lines and transformers required for transmittingEvacuation power from generating unit to the nearest grid sub-station of CSEB and

also equipments required for synchronizing, protection etc. will be installed


by the party themselves as per specifications of CSEB, or these can beinstalled by CSEB at the cost of the party.

• These lines/equipments will be maintained by CSEB, but the party will berequired to pay operation and maintenance charges as fixed by CSEB,from time to time.

8 Wheeling Charges • Wheeling through CSEB’s transmission/distribution system allowed onpayment of wheeling charges to CSEB at rates fixed by CSEB.

• State Government will not compensate CSEB towards line losses etc. forthe power wheeled.

9 Reactive Charges If the power producer takes reactive power from CSEB, they have to pay reactivepower charges to CSEB.

10 Start Up Power If power producer requires start up power for operation and maintenance of thepower plant, he will have to pay double the charges of CSEB for 33 kV-two parttariff.

11 Incentives New power generating units to be treated like new industry and they will beentitled to all the concessions given to new industrial units.


CHHATTISGARH STATE RENEWABLE ENERGYDEVELOPMENT AGENCY

POLICY ON ALLOTMENT OF SITES INCENTIVE TO SMALL HYDEL PROJECT


1 Order Notification No. 131/DoE/2002 dated 29.08.2002

2 Title Policy Directives on Allotments of Sites and Incentives to Small Hydel Projectsup to 25 MW.

3 Objective • Small Hydel power plants (SHPs) to be generally installed by Privateinvestors.

• Chhattisgarh Renewable Energy Development Agency (CREDA) may alsoinstall SHPs with it’s own funds or through joint venture company formedby CREDA.

• Chhattisgarh State Electricity Board (CSEB) may also install SHPs asand when necessary.

4 Operative Period Up to 28.08.2010.

5 Eligibility Criteria • Applicant should be a citizen of India. In case the applicant is a company,the company must be registered in India.

• Applicant/Company should have previous experience and should betechnically sound and economically viable unit.

• Preference to be given to the applicant/company providing benefits of theplant to un-electrified villages and envisages wheeling for this purpose.

• In case of multiple response for a given site invited by CREDA, the awardof site shall be done according to merit list prepared on the basis of criteriagiven above.

• In case of multiple response to sites selected by the applicants themselves,the allotment shall be on “first come first served” basis.

6 Projects identification and • Nodal Agency to get the Pre-Feasibility Reports (PFR) prepared and offerAllocation Process site to the Developer.

• Projects can also be identified by Developer(s) on their own, providedthey are not in conflict with the planned/allotted project of Governmentand irrigation/drinking water plan of State Govt.

• Nodal Agency to get the permission/ NOCs required from otherDepartments.

• A non refundable application fee of Rs. 5/- per kW subject to a minimumof Rs. 10,000/- to be charged from each applicant.

• Applicant to submit two sets of PFR along with processing fee @ Rs. 25/-per kW subject to a minimum of Rs. 25,000/-.

• Processing fee to be returned if the site is not allotted

7 Agreement Termination • The entrepreneur to execute the project within maximum period of 3 yearsfrom the date of approval of the Detailed Project Report (DPR).

• Time limits for various stages of the project to be set by CREDA at thetime of approval of the DPR.

• CREDA may cancel the allotment of site in case of non execution of theproject within time limits set for various stages of the project or

• Due to the failure to make the plant operational within a period of 3 yearsfrom the approval of the DPR.


• CREDA may increase the time limit(s) in case the delay is due tounavoidable circumstances.

8 Land Acquisition Award of land to be done by the District / Division / State level committee / Boardconstituted under the C.G. Industrial Investment Promotion Act 2002.

9 Water Royalty Water royalty will be payable to Water Resources Department, Govt. ofChhattisgarh at rates prescribed by that department from time to time.

10 Electricity Duty No electricity duty shall be payable for five years from the date of commissioningof the SHP installed as the NCE policy of the state announced vide its circularNo. 38 dated 08.04.2002

11 Sale of Power • CSEB shall mandatorily buy the excess power after actual captiveconsumption by the Entrepreneur or sale to third party/sister unit.

• CSEB to buy this excess power @ Rs. 2.25 per unit.

• Government may revise this rate from time to time.

12 Transmission System • Cost for evacuation of power like grid interfacing equipment andand Evacuation transmission line to be borne by the Entrepreneur if the transmission

line is up to a distance of 2 km.

• For distances exceeding 2 km, the cost for laying transmission lines tobe shared equally by the Entrepreneur & CSEB.

• However cost sharing by CSEB will be limited up to a max. distance of 5km.

• Laying of the transmission line to be done by CSEB.

13 Wheeling Charges • The entrepreneur can wheel electricity to his unit or to a third party orsister concern using the grid of the CSEB.

• Wheeling charge to be fixed as per policy of CSEB.

• In case the purchaser unit is out side the state, wheeling charges shall bedecided by the SEBs of two states.

14 Transfer of Power Plant • Allottee cannot transfer the site awarded to him.

• In case allottee is a company, the actual portion of the promoter equityshall remain non transferable.

• After commissioning of the project the system can be transferred onlywith the prior permission of Nodal Agency.

15 Co-Ordination /Monitoring Inter-Departmental co-ordination shall be done by the district / divisional / statelevel committee / board constituted under the Chhattisgarh Industrial InvestmentPromotion Act 2002.


GOVERNMENT OF CHHATTISGARH STATE RENEWABLE ENERGYDEVELOPMENT AGENCY

WIND ENERGY POLICY


1 Order Notification No. 1905/2006 dated 7th August , 2006

2 Title • Wind Energy Policy

• The policy shall prevail over the general policy declared for promotinggeneration of power through Non-conventional Energy sources issued inthe year 2002.

3 Nodal Agency Chhattisgarh State Renewable Energy Development Agency (CREDA).

4 Operative Period From the date of its publication in the Gazette of the Government of Chhattisgarhuntil further revision.

5 Projects Identification and • CREDA to carry out the wind monitoring for the identification of wind powerEligible Site potential in the State.

• Any renowned wind energy consulting firm or manufacturer of wind energygenerators-which is enlisted with the Government of India and isinterested in wind energy prospecting, may be permitted to conduct windmonitoring.

• No two prospectors shall be allowed to conduct studies within 50 km apart.

• Allotted firm to carry out the monitoring for at least 24 consecutivemonths and shall have its data verified by the institution recommendedby MNRE.

• After receiving the verified and certified, ‘monitored data’ the site will bedeclared as an “eligible site”.

6 Eligibility Criteria • Developer to be selected on the basis of an open tender for the installationof wind energy generators at “eligible site” .

• Developer to be given the land use right for the installation of generator atthe land within 25 km radius of eligible site”.

• If any private developer identifies an “eligible site”, then first right forinstallation of the generator will be given to that developer for the landwithin 10 km radius of “eligible site”.

7 Statutory Clearances Necessary approvals for the project from all departments will be accorded asper the provisions of the Chhattisgarh Industrial Investment Promotion act.

8 Land Allotment Government land will be given to the developer for 30 years or life period ofproject whichever is earlier, in accordance with the requirement conveyed bythe Energy department to the Revenue department.

• If private land is required then the option for its use will be one of thefollowing:

(a) Acquisition of land will be carried out as per the ideal rehabilitationpolicy under land acquisition act of the State Government.

Or

(b) If land owner opted to give the right to use his land for the project tothe developer then developer have to pay an annual rent ofRs. 5000/- per acre to the landowner.

(c) Rent to be increased @ 15% every three years.


(d) Arrangement will be in force for 30 years.

(e) Time-limit for land use right can be further increased with theapproval from State Government subject to the developer followingall terms and conditions of the MOU.

9 Sale of Power • State Government or its nominated agency shall have the first right topurchase the energy generated by the wind energy generator at the ratedecided by Chhattisgarh State Electricity Regulatory Commission(CSERC).

• In the case of non-purchase of power by the State Government or itsnominated agency, developer will be at liberty to sell the power to a thirdparty.

10 Grid Interfacing and • Grid interfacing and maintenance to be undertaken by the developer asMaintenance per the specifications of the CSEB at their own expenses.

• If developer desire, CSEB could undertake these works, on payment ofcharges to be decided by it.

11 Transmission System and CSEB will undertake to transmit on its grid the power generated by the developerEvacuation and make it available to him for captive use or to the third party nominated by

developer, at the charges determined by the CSERC, irrespective of the distancefrom the generating station.

12 Incentives by State • Wind energy generating companies shall be eligible for all the incentivesGovernment for new industries, declared in the industrial policy of the Department of

Industries of the Government of Chhattisgarh.

• Such firms will have to abide by the duties laid down in the industrialpolicy and in all the prevalent policies of the Government.


GOVERNMENT OF GUJARAT

INCENTIVE SCHEME FOR BAGASSE BASED CO-GENERATION


1 Order Resolution No. PWR-1096-1905-B dated Nil

2 Title Incentive Scheme for Bagasse based co-generation

3 Eligibility Sugar mill/ promoter/ Developer having surplus power available in addition tothe captive requirement of the sugar mill.

4 Transmission of Power to Grid. Transmission lines for evacuation of power from co-generation plant to thenearest grid sub-station shall be built by the developer.

5 Sale of power • GEB shall purchase surplus electricity generated by co-generation plant@ Rs.2.25 per kWh with 1994-95 as base year with 5% escalation everyyear for a period of 10 years from the date of commissioning of the project.·

• Purchase price for the remaining period to be negotiated, subject to finaldecision of GERC

6 Metering Metering equipment shall be provided by sugar mills at their own cost at a pointdecided by GEB.

7 Nodal Agency Gujarat Energy Development Agency would function as a nodal agency forimplementation of the scheme.



SOLAR POWER POLICY DATED 6TH JANUARY, 2009

Sl. Description DetailsNo.

1 Order G.R.No.SLR-11-2008-2176-B dated 6th January, 2009

2 Title Solar Power Policy – 2009

3 Operative Period • Date of issue up to 31. 03.2014

• Solar Power Generators (SPGs) installed and commissioned during theoperative period to be eligible for incentives for 25 years from COD.

4 InstalledCapacity A maximum 500 MW SPG shall be allowed for installation during the operativeperiod of policy

5 Capacity Cap Minimum 5 MW each, both type Solar Photovoltaic (SPV) and Solar Thermal(ST)

6 Eligibility Any company or body corporate or association of body of individuals, whetherincorporated or not, or artificial juridical person.

7 Qualifying Criteria A. Financial Criteria·

• Internal resource Generation: Rs 1.20 Cr/ MW of capacity, computed asfive times the maximum internal resources generated during any of thelast five years business operations

• Net Worth: Rs 2.00 Cr / MW of capacity derived from any of the past threeyears annual accounts

• Annual Turnover: Rs 4.80 Cr./ MW of capacity derived from any of thepast three years annual accounts

Note: Entity to furnish documentary evidence certified by qualified auditorsin support of their Financial Capability

B. Technical Criteria·

• Entity to have collaboration with proven technology supplier of Solar powerprojects.

• Entity must have experience of developing any Projects in the last 10years whose aggregate capital costs must not be less than the amountequivalent to Rs. 3.00 Cr./MW of capacity

• The capital cost of at least one Project should be equivalent or more thanRs. 0.50 Cr /MW of the capacity

Note: .For this purpose capital expenditure on Projects that have been completedat least 7 days before the date of submission of proposal to beconsidered

8 Process of Allotment • The entity desiring to set up Solar Power Project , either for sale of powerand / or for captive use within the State, to submit a proposal, with requisitedetails to the Nodal Agency

• The qualifying entity to be decided by a Project Approval Committee

9 Restriction for use of Fossil No fossil fuel viz: cola, gas, lignite, naphtha, wood etc. shall be allowed to beFuel used in solar thermal project

10 Wheeling Charges 2% of the energy fed to the grid, till the Wheeling charges determined by GERC

11 Electricity Duty Exempted

12 Exemption from Demand Cut Exemption from demand cut to the extent of 50% of the installed capacity ofSPGs, assigned for captive use purpose shall be allowed


13 Sale of Energy Energy sold to distribution licensees in the state at levelised fixed tariff per unitas detailed below for 25 years under a PPA

Sl. Particulars Tariff for PV Projects Tariff for ThermalNo. (Rs. /kWh) projects (Rs. /kWh)

(i) Projects 13.00 (for first 12 10.00 (for first 12 years)commissioned years) 3.00 (From 13th 3.00 (From 13th to 25th

before 31.12.2010 to 25th year) year)

(ii) Other Projects 12.00 (for first 12 years) 9.00 (for first 12 years)commissioned 3.00 (From 13th to 3.00 (From 13th to 25th

before 31.03.2014 25th year) year)

Note: Benefits of this policy will not be available to the projects set up underMNRE incentive scheme for SPG

Further any subsidy/ incentive received by SPG developers from any sourceshall be reduced from above mentioned rate for purchase of power from SPGdevelopers except the benefits of Accelerated Depreciation under Income TaxAct

14 Security Deposit • Developer to give Bank guarantee @ Rs.50 lakh per MW at the time ofsigning of PPA with GUVNL and/ or distribution licensee.

• In case the developer fails to achieve commercial operation within thetime period mentioned in PPA ,the bank guarantee shall be forfeited.

• The Bank guarantee shall be refunded, if the commercial operation isachieved within the time period mentioned in PPA

15 Plant and Machinery Only new plant and machinery shall be eligible for installation under this policy

16 Metering of Electricity Electricity generated from the SPGs, shall be metered on monthly basis jointlyby GEDA/ GETCO at the sending sub-station of 6.6 kV or above located at site.

17 Grid Connectivity and The evacuation facility from the Solar substation/switch yard to GETCOEvacuation substation shall be initially approved by GETCO after carrying out the system

study. Power by the SPG to be injected at 66 kV.

Transmission line from the switchyard of the solar substation to the GETCOsubstation shall be laid by GETCO

18 Open Access for Third • Granted subject to payment of Open Access charges & lossesParty Sale • Cross subsidy surcharge not applicable for open access obtained for third

party sale within the state.

19 Forecasting and Scheduling Not covered under scheduling procedure for intra-state ABT

20 Reactive Power Charges As per GERC order.

20 Penalty for Non-Fulfilling • Distribution licensee failing to meet minimum solar power purchase/ wheelPower Purchase Obligation of captive consumption or third party sale obligation specified by

Commission is liable to pay penalty at the rate of Rs.12/kWh to GEDA

• Penalty not to be linked in case of non-availability of adequate generationfrom Solar Power Projects

21 Clean Development Developer will pass on 50% of the gross benefit of CDM to the distributionMechanism (CDM) Benefit licensee with whom PPA is signed

23 Mid Term Review State Govt. may undertake mid term review of this policy after 3 years or as andwhen the need arises.

24 Power to Remove Difficulty Vested with Project Approval Committee



WIND POWER POLICY – 2007 DATED 13th JUNE, 2007 & AMENDMENT DATED 7th JAN, 2009


1 Order Resolution No. G.R. No. EDA-102001-3054-B dated 13th June, 2007 and G.R.No. WND-11-2008-2321-B dated 7.1.09

2 Title Wind power policy-2007 and Wind power policy (First Amendment) -2007

3 Operative Period 20th June, 2007 to 30th June, 2012.

Wind Turbine Generators (WTGs) installed and commissioned during theoperative period shall be eligible for the incentives for a period of 20 years fromCOD

4 Eligible Unit Any company or body corporate or association of body of individuals, whetherincorporated or not, or artificial juridical person for setting up WTGs, either forthe purpose of captive use and /or for selling of electricity in accordance withEA-2003 as amended from time to time.

5 Eligible Site Sites notified by Gujarat Energy Development Agency (GEDA) and or any othersites identified as potential site by the developer.

6 Wheeling of Electricity (a) To consumption site at 66 kV voltage level and above:-

• Allowed on payment of transmission charges and transmissionlosses otherwise applicable to normal Open Access Customer tothe locations inside the State.

(b) Wheeling of power to consumption site below 66 kV voltage level:-

• Allowed on payment of transmission charges and transmissionlosses otherwise applicable to normal Open Access Consumer andtransmission and wheeling losses @ 10% of the energy fed to thegrid.

• For Small investors having only one WTG in the state wheeling shallbe allowed on payment of transmission charges, otherwise applicableto normal Open Access Consumer and transmission and wheelinglosses @ 7% of the energy fed to the grid.

Note: Wind farm owner desired to wheel electricity to more than two locationsshall pay 5 paise per unit on energy fed to the grid to concerneddistribution company in whose area, power is consumed in addition tothe above mentioned transmission charges and losses, as applicable

7 Exemption from Electricity Exempted, except for Third Party Sale.Duty

8 Exemption from Demand Cut Exemption from demand cut to the extent of 30% of the installed capacity ofWTGs, assigned for captive use allowed

8 Sale of Power • Electricity generated from 1st April, 2009 to be sold at rate of Rs. 3.50 /unit for entire period of PPA, with approval of GERC.

• GUVNL/ Distribution licensee may purchase surplus power from WTGswheeling power for their captive use after adjustment of energy againstconsumption at recipient unit(s) @ 85% of tariff applicable to WTGs(commissioned in same tariff block).

• Provision to be applicable for WTGs commissioned under this policy, fromthe date of issue of the amendment .

9 Third Party Sale of Energy Allowed as per GERC order.

10 Land WTGs may be set up on private land, or revenue waste land/ GEDA land ifavailable.


11 Plant and Machinery • Only WTGs which are approved either by MNRE, GoI, or by recognizedinternational test house, to be eligible.

• Second hand WTGs are not eligible.

12 Metering of Electricity On monthly basis jointly by GEDA/ GETCO at the sending sub-station of 66 kVor above, located at wind farm site.

13 Reactive Power Charges As per GERC order.

14 Nodal Agency Gujarat Energy Development Agency.

15 Renewable Purchase Each distribution licensee to purchase electricity generated from all RE sourcesObligation (RPO) (Wind/ Solar/ Biomass/ Bagasse Cogeneration/ Mini/Micro Hydel etc) equivalent

to a minimum of 10% of its total consumption of electricity during a year or asper GERC order.

16 Penalty for non Fulfilling • Distribution licensee failing to meet the RPO is liable to pay penalty toPower Purchase Obligation GEDA

• Penalty not to be levied in case of non availability of adequate generationfrom Wind power Projects.

17 Grid Connectivity and • From Wind farm substation to GETCO substation within the range of 100vacuation Facility up to km shall be erected by the developer at their own cost and beyond thisGETCO Substation limit GETCO to erect the evacuation facility.

• Voltage level for evacuation shall be at 66 kV and above.

18 Security Deposit • Developer to give bank guarantee @ 5 lakh per MW to GETCO based onallotment of transmission capacity.

• Incase the developer fails to achieve commercial operation within the timeperiod (as per policy) the bank guarantee shall be forfeited by GETCO.

19 Renewable Energy Certificate GEDA shall develop suitable mechanism for issuance of "Renewable EnergyCertificates" at market based tradable instrument to promote renewable energyin the state.


GOVERNMENT OF HARYANA

POLICY FOR GENERATION THROUGH RENEWABLE ENERGY SOURCES, DATED 23-11-2005


1 Order GoH, Renewable Energy Deptt. Dated 23-11-2005

2 Title Policy for Promoting Generation of Electricity through Renewable EnergySources

3 Objective To involve Private Sector participation in Renewable Energy Sources basedpower projects in the State.

4 Potential • Biomass - 1400 MW

• Cogeneration - 100-150 MW

• SHP - 45 MW

• Solar - 320 Sunny days in a year

• Municipal waste - 17 MW

5 Operative Period From the date of notification till a new policy is notified.

6 Nodal Agency • Haryana Renewable Energy Development Agency (HAREDA) toco-coordinate all activities relating to Renewable Energy Developmentincluding generation of power using non-conventional energysources.

• It shall function as a single window clearing Agency for all RE Projects forfacilitating necessary clearances and approvals on behalf of the Govt. ofHaryana.

7 Eligible Producer • Companies, Cooperatives, Partnerships, Local Self Governments, StateNodal Agency, Boards & Corporations, Power utilities, Private developers,Public - Private Partnership Companies, Consortia, Registered Societies,NGOs, individuals etc.

• There will be no restriction on generation capacity or supply of electricityto the grid.

8 Grid Interfacing • Interfacing, from the point of generation to HVPN, UHBVN, DHBVN andany other licensee’s nearest Light/High Tension (HT) lines etc. as well asmaintenance of LT lines will be undertaken by the producer as per thespecifications and requirements of the licensee/ utilities

• Alternatively, these works and their maintenance could be undertaken bythe Licensee/ Utilities on behalf of power producers at charges to bedecided by the Licensee/ Utilities.

• HT lines to be maintained by the power utilities as licensee.

• After commissioning of the project, the power producers to transfer theselines to the concerned power utility as transfer of assets for its maintenanceby the power utility till the validity of PPA.

• Utility to carry out the augmentation of T&D system of sub-stationcapacity at 33/11 kV or higher capacity, if required at the cost of powerproducers.

• Two sets of separate meters to be installed on the H.T. side by theproducer.

• In case of co-generation/ captive power generation two sets of separatemeters to be installed, one for export and other for import of power.


• Necessary current limiting devices to be installed in the generatingequipment by the producer. Capacitors of sufficient rating will also beprovided in the equipment to ensure that the power factor is alwaysmaintained above 0.8.

• Plants should have a capacity of at least 1 MW or above.

9 Wheeling Charges • Licensee / Utilities to transmit, on its grid, the power generated and makeit available to the producer for captive use or for Third Party within theState as per approved tariff / surcharge, notified by HERC

• If H.T./ L.T. lines are required to be laid beyond Licensee/ Utilities linesfor wheeling the power, then the cost of the same to be borne by thepromoter/ power producer.

• For sale of power to a third party, the name of such party shall be indicatedby the power producer at the time of making an application

• In case of third party sale, licensee/ utilities to have preference over thepower generated by the power producers.

• Third party sale to be allowed when the surplus power is not beingevacuated by the licensee/ utilities.

10 Sale of Power • Licensee/ Utilities to purchase electricity from new projects set up after(Purchase Price) the notification of the present policy at the rate to be decided by the HERC.

• For old captive/co-generation projects which are having surplus power tooffer for sale to the power utilities, the tariff shall be negotiated

11 Banking • To be allowed by HVPNL/ DHBVN/ UHBVN/ for a period of one year, freeof cost.

• Withdrawal of banked power to be allowed only during non-peak hours.

• If the banked energy is not utilized within a period of twelve months fromthe date of power banked, it will automatically lapse and no charges shallbe paid in lieu of such power

12 Electricity Duty Exempted

13 Water Charges (Royalty) • Allowed to use water for power generation through micro/ mini/ small hydelplants.

• No royalty will be charged on the water used for power generation fornon-consumptive use.

14 Local Area Development Tax Exempted on plant, machinery, equipment that has been capitalized as perprovisions of section 5(f) of Haryana Act No.13 of 2000.

15 Fuel / Raw Material for • Co-generation projects to be designed to use non-fossil fuels. The use ofCogeneration Plants conventional fossil fuels to be allowed as per MNRE policy .

• "Fuel cost pass through" not permitted as the tariff in these cases will befixed taking into consideration the normal availability of non-fossil fuel for240 days per annum only.

16 Incentives All new projects to be treated as "Industry" in terms of Industrial Policy, 2005and all the incentives available to new projects to be applicable.

17 Tenure of Power Purchase • Minimum period of 20 years or more depending on the plant's life.Agreement • After this period, it shall be re-negotiated between power producer and

concerned power utilities/ licensee.

• However, power utilities shall have the first right to refuse in case, it doesnot want to buy the power for period beyond 20 years

18 Land Acquisition • State Govt. to acquire land if necessary at the cost of Independent PowerProducers (IPP) if a request to that effect is made.


• Setting up of RE Projects in the Agriculture Zone to be permitted by theTown & Country Planning Department without levying of conversioncharges.

19 Invitation of Proposal • Bidding to be evaluated by the Technical Appraisal Committee (TAC)constituted by the State Government

• When the site is identified by the IPPs, the proposal and DPR to besubmitted to HAREDA

20 Process for Setting of Projects • HAREDA to invite proposal through press advertisement.

• Technical Appraisal Committee to (TAC) to appraise the proposal

• Project up to 5 MW capacity will be considered and approved by the Boardof Governors of HAREDA on the recommendations of TAC within twomonths time.

• For the projects above 5 MW capacity, a High Powered Committee, underthe chairmanship of Chief Secretary, Govt. of Haryana to consider thereport of TAC, and approve/ reject the proposal

• Once the proposal has been approved by the Board of Governors ofHAREDA / High Powered Committee, HAREDA to enter into an MOU withthe private investors for preparation of DPR and implementation of theproject within one months time.

• After approval of DPR by the HAREDA, private investors to enter intoPPA with the concerned power utilities/ licensee, within two months , forthe sale of power to it or to the third party after approval from (HERC)

• In case there is delay beyond two months then either party can approachHERC for decision in this matter within another two months.

• If the applicant does not take effective steps (i.e., at least 10% of the totalproject cost should be incurred) to implement the project within six monthsfrom the date of signing of PPA, the Agreement could be terminated andthe site allocated to another applicant.

• Security deposited to be forfeited.


HIMACHAL PRADESH

SMALL HYDRO POWER POLICY - 2006 AND AMENDMENTS(UP TO 5.0 MW)


1 Projects Classification • Projects Identified by the IPPs as Self Identified Projects.

• Projects Identified by HIMURJA

2 Reservation/ Preference • SHP up to 2.00 MW capacity reserved for the bonafide Himachalis / andCooperative Societies comprising of the bonafide Himachalis.

• While allotting projects up to 5.00 MW, preference to be given to thebonafide Himachalis.

3 Eligibility • Any Private Investor / PSU/ Co-operative Societies comprising the bonafideHimachalis

• Not more than 3 projects to be allotted for implementation to an IPP.Conditions to be relaxed for self identified projects of IPPs who havecommissioned any HEP in State & no IPP should have more than 3 HEPsunder execution.

4 Process of Allotment • Applications to be received, after every six months, through advertisementsissued by HIMURJA including self identified sites.

• Applications to be scrutinized by HIMURJA and approved by theGovernment.

• Private Investors to visit the potential sites to ensure that the Projectcomponents do not fall in the restricted zones and for verifying variousproject related parameters, before submitting their offers on the prescribedformat.

• Application to be accepted in the prescribed format along with theapplication fee of Rs. 5000 & requisite documents.

• Application for the same name of the project already allotted upstream/downstream not to be accepted at the proposed site.

• IPP may apply for more than one project, on separate application for eachproject.

• Applications to be assessed on the basis of various parameters viz.Financial & Technical Strength & Project Development Experience of theBidders.

• IPP to submit Pre-feasibility Report (PFR) of the Project along withessential documents:

(i) In case of the bonafide Himachali Promoter Directors /Cooperatives,a proof thereof to be furnished to HIMURJA/ Government.

(ii) Details of the Company, individual equity share holder(s) withcomplete address, Tel. No./Fax No. etc.

(iii) Himachal Pradesh (HP) Government reserves the right to reject anyor all offers without assigning any reason.

(iv) IPP to establish its corporate office in HP after the allocation of theProject

• Allocation of marks to Himachalis would be as under :

(a) Financial capability 60 marks

(b) Technical capability 30 marks

(c) Personal interaction 10 marks


However, to qualify the financial capability, minimum assets (both movable& immovable) should not be less than Rs. 10.00 lacs.

• After the allotment of the Project site(s) the allottee firm to fulfill the followingpre -requisite criteria:-

(a) Furnishing of the Processing Fee (non-refundable)

- For bonafide Himachali, Rs. 25,000/- up to 2 MW

- Beyond 2.00 MW up to 5 MW Rs.25,000/- + Rs.10,000/- perMW for the capacity exceeding 2 MW.

- For others, Rs. 2.00 lac per Project.

- If an IPP enhances the capacity of already allotted Projectafter TEC / signing of IA then the IPP to furnish the processingfee afresh at the rate specified above.

(b) Furnishing of Security charges (refundable)

- Security charges from the bonafide Himachali shall be asfollows:-

(i) Up to 2MW - Rs. 50,000/- in shape of Bank Guarantee

or Rs. 25,000/- in the shape of Demand Draft.

(ii) Beyond 2MW up to 5 MW- Rs. 75,000/- in the shape ofBank Guarantee

or

Rs.35,000/- in the shape of Demand Draft.

- For others, the security charges will be paid in cash or by wayof demand draft @ Rs. 50,000/- per MW.

• SHP sites up to 5 MW which stands cancelled and TEC stands accordedto be considered for reallotment on the basis of advertisements.

• The allottee firm shall have to sign the MOU with the Government ofHimachal Pradesh, within a stipulated date specified in the allotment letter.

• Up-front premium for SHPs above 2 MW and up to 5 MW to be charged inthe following manner and shall be deposited by the Developer beforesigning of MOU:

(A) For new Projects:

(a) Upfront premium Exempted for projects up to 2 MW.

(b) Above 2 MW and up to 5 MW - Rs. 45,000/- per MW with theceiling of Rs. 75,000/- (Non-refundable) in shape of Bank draft

(B) For Projects where DPRs are ready and could not be allotted beforeand cancelled after due consideration

Projects up to 5 MW : Rs.10,000/- (fixed) + cost of DPR

Beyond 2 MW up to 5 MW : Rs.75,000/- in the shape of Bankguarantee

or

Rs.35,000/- in the shape of D.Das per norms of MNRE

• Upfront premium, processing charges and other security deposits shallnot form part of the Project cost, & to be borne by the Developer.

• If Developer does not prepare DPR within 3 months of signing of MOU,MOU to be terminated automatically and bank guarantee forfeited.

• Developer to prepare DPR within 24 months from signing of MOU


• DPR to be accorded Techno-economic clearance (TEC) by a committeeto be constituted by HP Govt. before signing of Implementation Agreement(IR).

• Government of Himachal Pradesh to sign IA with the Developer within aperiod of 30 months from the date of signing of MOU.

• IPPs to obtain all the statutory/non statutory final clearances from allconcerned Departments, after paying the prescribed fee within six monthsof signing of the IA, failing which the agreement automatically standcancelled.

• Extension in this period, which is not due to force majeure reasons, maybe allowed by levying an extension fee of Rs. 10,000/- per MW per monthwith maximum extension up to six months only and in case of establishedforce majeure conditions up to six months without extension fee subjectto the approval by the Government.

• In case of augmentation of capacity of already commissioned Projects byan IPP following capacity addition charges shall be levied, before accordingapproval by the Government:

(a) 0.50 MW and below Rs. 1.00 lacs

(b) Above 0.50 MW to 1 MW Rs. 2.00 lacs

(c) Above 1 MW Rs. 5.00 lacs per MW

Other charges such as processing fee, security deposits as specified aboveshall be payable by the IPP in addition to above charges.

• IPPs to carry out the Environmental Impact Assessment (EIA) studies.

• If the aggregate capacity of the Projects in the cascade exceeds 5 MWthe expenditure to be 1.5 % of the total Project cost.

5 Enhancement of Capacities • Enhancement of capacities allowed subject to levy of 3% additional freepower over and above existing free power royalty

• 3% additional power not applicable if enhancement of capacity is up to20% of originally allotted capacity

• In case where additional 3% is levied , additional upfront payment foradvancement is not to be levied

6 Land Acquisition • Provision under "The Himachal Pradesh Transfer of land (Regulation) Act,1968 in Tribal Areas to be adhered to.

• Land, whether the private or Government except for permanent structuresto be taken only on lease basis at the rates approved by the Governmentfor the agreement period.

• Government to acquire land for the permanent structures by invoking theemergency clauses under the Land Acquisition Act, 1894.

7 Equity Participation • Government may consider the request of IPP for changing the name ofCompany or Consortium.

• Promoter(s) to be allowed to sublet/transfer its right by way of merger,change of management, Power of Attorney, by transfer, lease, mortgageor any other such possible means accrued under the MOU / IA to anyother Himachalies or Cooperative societies comprising of such Himachalisat any stage

8 Rehabilitation and • The Company, 'if ROR Project' to ensure minimum flow of 15% waterRe-Settlement immediately downstream of the diversion structure of the Project all the

times including lean seasons from November to March.

• The Company to build development works in the vicinity of the Projectarea for the benefit of local population.


• Expenditure on such works to be incurred by the Company to the tune of1% of the Project cost.

• Amount on account of “Local Area Development” to be paid by Developerto Deputy Commissioner of the Project Affected Areas in equal installmentsstarting from the date of signing of the IA till the COD.

9 Sale of Power • HPSEB to purchase power @ Rs. 2.50 per unit

• Third party sale within the State allowed for SHP Project where cost ofgeneration is above Rs. 2.50 per unit

• It is obligatory for IPP to submit third party sale proposal within State,wherever peak load demand exists, duly approved by HPERC along-withthe DPR for accordance of TEC

• Final Tariff rates to be determined by HPERC after the Financial closure.

10 Banking of Power Allowed, as per prevailing rules and regulations

11 Transmission System • Interfacing including Transformers, panels, kiosks, protection, metering,and Evacuation H.T. Lines, from the point of generation to the HPSEB nearest feasible

H.T. sub station as well as maintenance to be undertaken by the Developerat his own cost.

• Alternatively, the above works and their maintenance could be undertakenby the HPSEB, at charges decided by the HPSEB & payable by theDeveloper.

• Developers may erect common dedicated transmission lines for jointevacuation of Power from two or more projects by way of suitableConsortium Agreements.

• Government of Himachal Pradesh to provide grid connectivity to the smallHEPs in rural areas to provide "Off grid" solution

12 Deemed Generation • To be payable in case of non-availability or partial availability of evacuationsystem beyond the interconnection point and / or backing down instructionsfrom the State Load Dispatch Centre (SLDC).

• To be payable when water spillage exceeds 480 hours in a year and onlywhere evacuation system is connected to manned 22 kV sub-stationsdeclared as control sub-stations by the Board/33 kV/EHV Sub-stations ofHPSEB.

• The benefit on account of deemed generation not allowed where captiveuse / third party sale is to be made outside the State

A. Following not to count towards the Deemed generation:-

(i) Loss of generation at the Station due to the interruptions /outages attributed to lasting for a period of less than 20 minutesat a time.

(ii) Loss of generation at the Station on account of Force Majeureevent(s).

B. Period of outage/interruption on account to such factor(s) shall bereconciled on monthly basis and the loss of generation of the Stationcounting towards Deemed Generation after accounting for the eventsabove, shall be computed on following considerations:

(i) If such period falls within the first twelve months after theCOD the generation envisaged for the month in which suchperiod falls, based on inflows relating to 75% dependableyear as per the hydrological data contained in the ApprovedDPR; and

(ii) If such period falls subsequent to first twelve months after theCOD the generation actually achieved including the Deemed


Generation, if any, in the corresponding months of the previousyear or the one envisaged in that month based on inflowsrelating to 75% dependable year as per the hydrological datain the approved DPR whichever is less.

C. HPSEB to pay for the Saleable Deemed Generation on the basis ofthe deemed generation after deducting on deemed basis thecorresponding quantum of Govt. Supply, auxiliary consumption,transformation and transmission losses in deemed delivery of powerat the interconnection Point.

D. For working out benefit accruing on account of deemed generationany loss in generation during the first year of the operation of theplant shall be based on the hydrological data in the DPR relating to75% dependable year.

- During the subsequent years, deemed generation shall bepayable up to actual generation in previous years / 75%dependable year generation, whichever is lower

13 Wheeling Charges • To be determined as per policy of HPSEB / SERC at that time.

• Wheeling for captive use within state allowed at a fee of 2% (includinglosses)

• For sale/ captive use of power out side state 1% including (system losses)of the energy received excluding Royalty.

14 Royalty • Royalty on water usage for sale of power within State as free power to theState from SHP up to 5 MW, is waived off for 12 years reckoned after 30months from the date of signing of IA.

• Beyond 12 years, the royalty to be @ of 12% for next 18 years and beyondthat @ 18%.

• 12 years relaxation in royalty shall however not be applicable to theProjects which make captive use of power outside the state or makethird party sale outside the state. In that case, the royalty @ of 12%reckoned after 30 months from the date of signing of IA of the Projectshall be applicable.

15 Taxes & Duties • Private Investor to pay all taxes and duties or other levies etc. to theGovernment of India/Himachal Pradesh Government

• After financial closure, within the time period of six months specified inthe IA, the developers to submit a copy of the documents submitted tothe Financial Institutions / Banks along with a copy of the loansanctioned.

16 Incentives by State • Incentives/concessions offered by the MNES / H P Government to beGovernment applicable for all SHPs up to 5 MW.

• Final decision of the actual capacity of the Project shall rest with theGovernment.

17 Incentives by MNRE, A. MNRE, Capital Subsidy Scheme for setting up of commercial SHPs upGovt. of India to 25 MW Station Capacity in Himachal Pradesh.

- MNRE to provide capital subsidy through Financial Institutions.

- Subsidy will be independent of quantum of term loan and will belimited to the amount indicated below :

Up to 100 kW From 101 kW to 999 kW From 1 MW up to 25 MW

45% of Project 45% of Project cost 45% of Project costcost limited to limited to Rs. 30.00 Lacs limited to Rs. 30.00 LacsRs. 30,000/- + Rs. 21,625/- per kW. + Rs. 21,625/- per kW.per kW


B. MNRE Scheme for providing promotional incentives for Detailed Survey& Investigation (DSI) and preparation of DPR for SHP sites up to 25 MWpotential in Himachal Pradesh.

Following promotional incentives under SHP programme of MNRE willbe applicable in the form of grant-in-aid as per the amount given belowor actual cost incurred for carrying out DSI and preparation of DPR

Up to 1 MW Above1 MW up to 10 MW Above 10 MW & up to 25 MW

Rs. 1.75 lacs Rs. 3.00 lacs Rs. 5.00 lacs

Eligibility Criteria:

(i) The promotional incentives for DSI Report and DPR are applicableto the developers who are the owners or have been allotted theProject site by the State Government.

(ii) Proposals to carry out DSI to be considered for identified hydel siteswhere feasibility studies have been completed, and PFR enclosed..

• The above incentives are subject to modifications from timeto time.

18 Intellectual Property Right • Developer to establish, own, operate and maintain the Project for a periodof 40 years, after 30 months from the date of the signing of the IA(irrespective of extensions in the time period of the IA granted on anyaccount).

• Thereafter, the Project shall revert to the State Government free of costand free from all encumbrances.

19 Employment Opportunities • IPP to inform the local Police Station and the Labour Officer about thedetails of the labourers and other work force engaged, regularly.

• Company to provide minimum 70% employment to the bonafide Himachaliswhose names are registered in Employment Exchange located in the State,for all unskilled/skilled staff and other non -executives required forexecution, operation and maintenance of the Project.

• IPP to give an undertaking to the Fisheries Department of the local areathat wherever feasible, rearing of fish shall be promoted by the IPP inconsultation with the Fisheries Department in the Project area at the timeof final implementation of the Project.

• Fisheries Department to charge compensation @ Rs. 0.50 lac / KM fromTail Race to weir of the Project and Rs. 0.50 lac / MW from IPPs.

• It will be mandatory to utilize this amount on the same stream / nallah orelsewhere and formulate schemes accordingly.

20 Monitoring of Projects • Developer to stick to the time schedule for the investigations of the Projectand submission of the DPR etc.

• Progress to be reviewed by a committee on quarterly basis. In case ofdefault, H P Government have the right to cancel the MOU, forefeit thesecurity and allot the Project to any other party or take it over itself withoutpaying any compensation to the Private Investor.

• Private Investor to allow access to the authorized representative(s) of theGovernment /HPSEB / any other Agency authorized by Government to alllocations of the Project to ensure compliance in this respect.

• Projects assets to be maintained by the developer on the condition thatwould ensure a residual life of the Project at the rated capacity for at least30 years at any point of time.

• During the 10th, 20th, 30th & 35th years of operations, the Government orit's agency to carry out a mandatory inspection of the Project site.


• If the Project capacity or life is being undermined by inadequatemaintenance, the Government of HP to seek remedial measures from thedeveloper.

• If the developer fails to comply with the requirement, the Governmentshall have the right to take over the commercial operation of the Projectand shall have full right upon the sale of power including Developer'sshare.

• Cost on account of suggestive remedial measures to be deducted fromthe sale of Developer's share of metered power including the O & M costfor such a period till the Project's assets are restored .

• Thereafter, the Project shall be handed over to the developer.

21 General Conditions • Any difference and /or disputes arising at any time to be resolved by theparties hereto by mutual negotiations, failing which the matter shall bereferred to the Arbitrator.

• However, all disputes shall be settled within the jurisdiction of Courts ofHimachal Pradesh

22 Capacity Enhancement Project Capacity Enhancement from below 5 MW to above 5 MW capacity , the'additional Free Power ' Royalty will be charged on enhanced capacity in fulland no exemption from free power royalty will be permitted.

23 Self Identified Projects • Two Years time to be given to IPPs for preparation & submission of DPRfor according TEC otherwise allotment stand cancelled and project will beallotted to other IPP.

• IPPs to give Royalty to State @ 6% for first 12 years, 15% for next 18years and 24% for next 10 years . The projects will revert back to StateGovt. after expiry of 40 years from Scheduled COD.

• Provision of minimum assets of Rs. 10.00 lakhs is to be as eligibility forprocessing the Application in respect of Himachalli IPPs.


HIMACHAL PRADESH

HYDRO POWER POLICY - 2006 & AMENDMENTS - JAN 2008, JAN & FEB 2009 (ABOVE 5 MW)


1 Title Generation - Projects above 5 MW Capacity

2 Projects Classification • Projects above 5 MW to 100 MW installed capacity identified undercategory -I, for allotment for implementation in Private Sector

• Allotted through Memorandum of Understanding (MOU ) route.

3 Eligibility • Any Private Investor /Co-operative Societies comprising of the bonafideHimachalis.

• Not more than 2 projects to be allotted for implementation to an IPP .

• Company / Consortium to be selected on the basis of their equity inimplementation of the Project & Company to retain their equity participationtill three years after commissioning of Project

• IPPs to develop Projects either as Run of River (ROR) schemes or StorageProjects (SP).

• For SP, approval of State Government required to ensure minimumsubmergence of Habitations & Agricultural holdings.

4 Process of Allotment • To be advertised through Notice Inviting Proposals (NIP) for Globalinvitation of Bids

• Developer can submit Bids for one or more Projects separately

• Bids as well as Processing Fee to be submitted separately for each Project

• Allotment on the basis of tentative installed capacity as mentioned in NIPsthrough Competitive Bidding Route.

• Bidders to quote a fixed Upfront charges of Rs.20.0 lac / MW capacity ofProject and 'Additional Free Power' at a uniform rate over & above RoyaltyCharges, in all the 3 time bands of Royalty charges of12%, 18% and30% of the deliverable energy up to 12 years, next 18 years and balanceagreement period beyond 30 years.

5 Scope of Work • From concept to commissioning

• Transmission system for evacuation of power to form part of project andincluded in DPR

6 Capacity Enhancement • Allowed subject to levy of 3% 'Additional Free Power' over & above theexisting free power Royalty only if the enhancement is more than 20% ofthe Capacity originally allotted.

• When capacity enhancement is below 5 MW to above 5 MW, the additionalfree power royalty will be charged on enhanced capacity in full. Besidesthe additional free power as mentioned above .

• Where 'Additional Free Power' is levied, the additional Upfront Premiumfor enhancement not to be levied.

7 Self Identified Projects • Proposals to be examined and processed by concerned Agency

• Agency to submit proposal to State Govt. with their recommendations.

• Evaluation to be done as per criteria set by HPSEB for allotment of Projectsunder International Competive Bidding (ICB).

• The allotted Elevations of Projects will be indexed stream-wise & uploadedon Website of concerned Agency


• Proposals to be considered for allotment on 'First Come First Serve'basis

• If Scheme is clashing / overlapping with any allotted Project, Proposal tobe returned to identifier.

• Identifier allowed to participate in Bidding without any processing Feeand Bid Document issued free of cost.

• In case Identifier is unable to quote highest Bid in its offer under ICB, hewill be offered Project at highest bid received if his offer is short by 30%of highest bid otherwise it will go to Highest Bidder.

• Upfront Premium of Rs. 20 lakhs / MW shall be charged from successfulbidder as per the prevailing Policy on ICB basis

• IPPs to be given 'Two Years" time for preparation & submission of DPRfor according TEC, failing which allotment stand cancelled.

• Govt will be free to allot it to another IPP.

• Upfront Premium @ Rs. 20.00 lakh / MW to be paid by IPP within 30 daysof issuance of letter of allotment.

• Rate of Royalty to be 15% for first 12 years, 21% for next 18 years and33% for balance period of 10 years

• Projects to revert back to State Govt. , free from all encumbrances after 40years from scheduled COD.

8 Milestones After project allotment, MOU/ Pre-implementation Agreement or ImplementationAgreement (IA) to be signed and following milestones to be achieved.

Milestone Time Period Consequential Action

Projects where DPR / Projects where FeasibilitiesPFR ready to be ascertained by IPP

(i) Upfront Premium - 50% at signing of MOU - 50% at signing of MOU

- 25% at signing of IA - 25% at signing IA

- 25% at Financial Closure - 25% at Financial Closure

(ii) Security Deposit 30 days from signing of 30 days from signing of Cancellation of MOUMOU MOU

(iii) Compendium of One year from signing MOU One year from signing MOU Cancellation of MOU &(a) Hydrological Data -do- -do- forfeiture of Security(b) Geological/ Deposit /Upfront Premium

Geophysical Data

(iv) Topographical Surveys -do- -do- -do-

(v) Feasibility/Non feasibility -do- -do-of Project

(vi) Power Evacuation One year from signing MOU One year from signing MOU Cancellation of MOU &Envisaged by Company forfeiture of Security

Deposit /Upfront Premium

(vii) Submission of DPR 18 months from signing 24 months from signing -do-of MOU of MOU

(viii) Signing of Implemen- - 36 months from signing 42 months from signing Cancellation of allotmenttation Agreement with MOU of MOU & forfeiture of SecurityGovt. - 30 months if DPR is ready Deposit/Upfront Premium

& prepared by HPSEB

(ix) Submission for TEC/ Within 8 months from date Within 8 months from date Termination of IA &Statutory/Non-statutory of signing of IA of signing of IA forfeiture of SecurityClearances/Land Deposit/Upfront PremiumAcquisition


(x) Obtaining Govt. Within 10 months from date Within 10 months from date Extension of Period subjectApprovals/ Sanctions of Submission of Proposals of Submission of Proposals to deposit of Rs. 10000-/as per (ix) above by Company by Company MW/month subject to max.

Rs. 50 lacs

(xi) Financial Closure/ Within 24 months from date Within 24 months from date Termination of IA &Signing PPA/Start of of signing of IA or 6 months of signing of IA or 6 months forfeiture of SecurityConstruction Work of obtaining Clearances/ of obtaining Clearances/ Deposit / Upfront Premium

Approvals, whichever is Approvals, whichever isearlier earlier

(xii) Project Commissioning As per Techno-economic As per Techno-economic Disincentive as per ClauseClearance of the DPR Clearance of the DPR stipulated in IA

(xiii) Handing over of Project 40 years after Scheduled 40 years after Scheduled Action as deemed fitto Government COD COD

9 Statutory Clearances Concurrence of the competent authorities to be obtained as per the procedureapplicable from time to time

10 Agreement Termination • Agreement to remain in force up to a period of 40 years from COD

• Thereafter, the Project shall revert to the State Government free of costand free from all encumbrances.

• Any change in Consortium / equity participation would terminate MOU /IAand Project to revert back to Government without any compensation.

• Developer is permitted to withdraw from Project if not found techno-economically viable. The security and 50% of the upfront premiumdeposited shall be refunded without interest.

11 Equity Participation • Company consortium to be selected on basis of their equity participation

• Company to retain their equity participation till three years aftercommissioning of the project.

• Government may consider the request of IPP for changing the name ofCompany or Consortium provided that Promoter(s) retain the controllinginterest ie 51% equity in the new entity.

• In the event of any contravention, State Govt. to terminate the IA forthwithat any stage.

• Free transfer of shares permitted in the Company's allotted Projects .

• Company permitted to incorporate a Special Purpose Vehicle (SPV) forimplementation of Project with its registered office within HP with the sameequity participation.

• All rights & obligations under this agreement to be transferred to newcompany

• Company to ensure opening its office in the State.

12 Rehabilitation and • The Second Party, 'if ROR Project' to ensure minimum flow of 15% waterRe-settlement immediately downstream of the diversion structure of the Project through-

out the year.

• For determination of minimum discharge, the average discharge in thelean months ie from Dec. to Feb. to be considered.

• However Second Party is at liberty to install mini hydel projects to harnesssuch water for their captive use, subject to prior approval of State Govt.

• Activities of Local Area Development Committee (LADC) during executionof the Project it self and developer to keep a provision of 1.5% of theProject cost.

• Amount for local area development to be paid to Dy. Commissioner/Chairman, LADC in equal installments during construction of projects inIst quarter of every FY starting from date of Financial closure.


• Developer to keep Govt. informed of change in construction cost andrelease the installments accordingly.

• Company to provide employment to one member of each of the displacedfamilies as a result of acquisition of their land for Project

• Company to provide Training to the locals affected by Project

13 Disposal of Power • Developer shall be free to dispose off merchant power as per Govt. ofIndia Guidelines / provisions contained in Electricity Act-2003

• Govt. of HP /HPSEB to have right of first refusal on sale of such power asremains after meeting commitments of Royalty in the shape of Free Power,Additional Free Power& Merchant Sale of Power, on Tariff to be determinedby HPSERC and also for all SHP projects where IPP intend to use for itscaptive consumption within the State. .

14 Transmission System and • Developer to make arrangements for evacuation of Power from Project toEvacuation Board's / PGCIL's Sub station (Interconnection Point) as per the provision

in DPR.

• Beyond Interconnection Point, Developer to tie up the transmission systemwith HPSEB / PGCIL at mutually agreed wheeling charges.

15 Royalty • Developers to provide Royalty in the shape of free power to the Govt. ofHP in lieu of surrender of potential site @ 12% of the Deliverable Energyof Project for 12 years starting from date of synchronization of the firstunit/scheduled COD, whichever is earlier

• Royalty to be 18% for next 18 years and beyond that @ 30% beyond 30years

16 Incentive for Early Commercial If Project's Commercial Operation is achieved before scheduled COD, theOperation of Project quantum of free power to govt. shall be as :

• From date of first unit synchronization to COD of Project - 12% ofDeliverable energy

• From COD to scheduled COD

(a) 12% of Deliverable energy less two tenth(0.2) percentage pointsfor each period of 73 days (or part thereof) falling between the COD& scheduled COD

(b) 12% of Deliverable Energy for a period of 12 years from scheduledCOD

17 Disincentive for Delayed If Project's Commercial Operation is delayed beyond scheduled COD, theCommercial Operation of quantum of free power to govt. shall be as :Project • From date of first unit synchronization to scheduled COD of Project - 12%

of Deliverable energy

• Commencing from Scheduled COD & the number of days COD is delayedbeyond scheduled COD

(a) 12% of Deliverable energy plus two tenth (0.2) percentage pointsfor each period of 73 days (or part there of) falling between thescheduled COD & COD.

(b) From COD up to the date falling (12) years from scheduled COD ofthe project - 12% of Deliverable energy.

(c) Developer to pay the amount of free power component as above (a& b) in 10 equal monthly installments from actual COD in addition tonormal free power due.

18 Incentives by MNRE, Govt. A. MNRE, Capital Subsidy Scheme for Setting up of commercial SHPs Upof India to 25 MW Station capacity In Himachal Pradesh.

• MNRE to provide capital subsidy through Financial Institutions.


• Subsidy is intended for making re payment of the term loan providedto Developer of the SHP Projects by the Financial Institutions.

• Subsidy to be released after successful commissioning andcommencement of commercial generation .

• Quantum of subsidy to be independent of quantum of term loan andlimited to 45% of Project cost - limited to Rs. 2.25 Crores + Rs.37.50 Lacs per MW

B. MNRE Scheme for providing Promotional Incentives to Carry out DetailedSurvey & Investigation (DSI) and preparation of Detailed Project Report(DPRs) for SHP sites up to 25 MW potential in Himachal Pradesh.

Incentives under SHP programme to be applicable in the form of grant-in-aid as per the amount given below or actual cost incurred for carryingout DSI and preparation of DPR by the State/developers, whichever isless.

Up to 10 MW Above 10 MW & up to 25 MW

Rs. 3.00 lacs Rs. 5.00 lacs

Eligibility Criteria:

• Promotional incentives for DSI Report and DPR applicable to thedevelopers who are owners or have been allotted the Project site by theState Government for SHP development.

• Proposals for DSI to be considered for identified hydel sites where pre-feasibility studies have been completed, and the PFR enclosed..

• Proposals for preparation of DPR to be considered for SHP sites whereDSI have been completed, and DSI report enclosed.

The above incentives are subject to modifications from time to time.

19 Carbon Credits Sale of equivalent Carbon credits by Developer to be through competitive processamongst buyers.

20 Employment Opportunities • Company shall inform the local Police Station and the Labour Officer aboutthe details of the labourers and other work force engaged, regularly.

• Company to provide employment to the bonafide Himachalis whose namesare registered in employment exchange located in the State, in respect ofall the unskilled/skilled staff and other non -executives as may be requiredfor execution, operation and maintenance of the Project.

• On non-availability of the requisite / qualified manpower, Company couldrecruit persons from outside the State after getting non-availabilitycertificate from Labour Commissioner / Director Employment.

• Company to ensure employment to not less than 70% of the totalemployees/ officers/ executives from bonafide Himachali persons.

• IPP to give an undertaking to the Fisheries Department of the local areathat wherever feasible, rearing of fish shall be promoted by the IPP inconsultation with the Fisheries Department in the Project area at the timeof final implementation of the Project.

21 Monitoring of Projects • A Multi-disciplinary committee to review, on quarterly basis, theimplementation of Project, Employment, Relief & Rehabilitation , Time &Cost overruns of Project (if any) , Payments etc. In case of default, the HP Government shall have the right to cancel the MOU,.

• Projects assets to be maintained by the developer in a condition that wouldensure a residual life of the Project at the rated capacity for at least 30years at any point of time.

• During the 10th , 20th , 30th & 35th years of operations, the Governmentor it's agency to carry out a mandatory inspection of the Project site


• If the Project capacity or life is being undermined by inadequatemaintenance, the Government may seek remedial measures from thedeveloper.

• If the developer fails to comply with the requirement, the Governmentshall have the right to take over the commercial operation of the Projectand have full right the sale of power including developer's share.

• Cost on account of suggestive remedial measures to be deducted fromthe sale of developer's share of metered power including the operation &maintenance cost for such a period till the Project's assets are restored .

• Thereafter, the Project shall be handed over to the developer.

22 Disaster Management • To overcome any kind of natural calamity, Company to prepare DisasterManagement Plan & its implementation and include in DPR.

• Company to ensure that the material excavated from site shall be dumpedin the area approved by Ministry of Environment & Forests, GoI /StatePollution Control Board.

23 General Conditions • Developer to reimburse to HPSEB the amount spent by Board oninvestigations and infrastructure works of Project, up to signing of IA withcompound interest @ 10%/ annum within 3 months of signing of IA.

• Any difference and /or disputes arising at any time to be resolved by theparties hereto by mutual negotiations, failing which the matter to be referredto the Arbitrator. However, all disputes shall be settled within the jurisdictionof Courts of Himachal Pradesh

• Company to make financial provisions for mitigation of adverse impactsas per the approved EIA plan, Environment Management plan etc at theproject cost

• Company to ensure to protect the water rights of the local inhabitants fordrinking and irrigation purposes

Note: Govt. of HP its Notification No.MPP-F(1)-2/2025-V dated30-11-2009 has notified that the second party shall provide anadditional 1% free power over and above 12% free power fromhydel project for local area development fund.


JAMMU & KASHMIR POLICY FOR THE DEVELOPMENT OFSMALL HYDRO POWER

DATED 09-10-2003


1 Order No. 211 – PDD of 2003 dated 09-10-2003

2 Potential for Hydro Power 20000 MW

3 Applicability From the date of Notification

4 Applicable to SHP up to 25 MW as notified by Jammu & Kashmir State Power DevelopmentCorporation (J&KSPDC)

5 Participation Independent Power Producer (IPP) to bid for identified projects.

6 Prequalification Prequalification criteria shall be specified in Bid Documents.


• Applicants will be graded and listed based on balance sheet, annual reportsand other evidence of financial and technical capacity

7 Pre-feasibility Studies • J&KSPDC to prepare pre feasibility studies.

• Evacuation arrangements to be specified in the pre-feasibility studies.

8 Period of Project • Forty years from the date of award

• To revert back to Govt. of J&K or extended further on mutually agreedterms after 40 years

9 Land Allotment • IPP to acquire private land at their own cost

• Government land to be given on lease for 40 years

• Construction of approach roads, water and power supplies to be done byIPP

• All necessary assistance to be provided by the Power DevelopmentDepartment / Corporation

• For canal fall schemes, availability of water in the canal will be subject toirrigation demand and the IPP does not have any right for additional waterfor power generation

10 Process of Allotment • Through advertisement

• Applications to be accompanied with non refundable draft of Rs. 1,00,000payable to J&KSPDC


• Pre-qualified Bidders to be provided pre-feasibility studies prepared byJ&KSPDC ·Bids shall be invited for minimum premium of Rs 2 Lakh/MWpayable to Govt. of J&K

• Highest Bidder to deposit premium / other amount due, within a periodspecified in Bid.

• Successful bidder to be permitted to provide 50% of the bid amount inexcess of the threshold as a bank guarantee encashable at the time ofactual or scheduled financial closure, whichever is earlier

• In case of identical premium for any site, a gradation list based on pre-qualification criteria shall be the basis for allotment


• In case any project fails to get any acceptable Bid despite being bid outtwice, the Govt. of J&K may allot the site to a GOJK agency.

11 Sale of Power • HT consumer within J&K

• Local grids which are not connected to Jammu & Kashmir PowerDevelopment Department (J&KPDD) main grid

• Any consumer outside the state or to J&KPDD

• All sales to be approved by the Regulator.

12 Wheeling Charges • J&KPDD to provide infrastructure facilities for wheeling the generatedenergy

• J&KPDD / J&KERC to determine the wheeling charges for wheeling theenergy generated to third party consumers or outside the state

• For projects which are bid out prior to determination of rate by J&KPDD /J&KERC, the wheeling charges would be 10% of net energy supplied atthe interconnection point

• No wheeling charges are applicable for sale to J&KPDD or local gridswithin J&K

• J&KPDD to provide standard wheeling and banking agreement draft priorto bidding of the projects

13 Grid Interfacing/Transmission • IPPs to lay lines for connectivity to the nearest grid substation normally atLine 132 kV or 33 kV

• J&KPDD to determine the specification for evacuation facilities and thesame will be specified in the application form.

• On specific request from IPP, J&KPDD to carry out the implementation ofevacuation facilities at charges to be mutually negotiated.

14 Banking • Allowed within fixed period span of 2 months to be specified in the standardwheeling and banking agreement

• Energy banked to be monetised at the average pooled purchase pricepaid by J&KPDD during the month of banking-in (into the J&KPDDsystem) and banking-out during the month (of J&KPDD system)respectively

• Point of Banking would be the interconnection point at which the energywill be fed in the J&KPDD system

• Developer to pay the difference between monetised value of the banked- in and the banked - out energy and the peak period differential adjustmentwithin a period of 30 days failing which a penal interest will be levied onthe outstanding amount.

• In case of a balance to the credit of developers, it shall be payable byJ&KPDD within 30 days with a penal interest on overdue settlement

15 Despatch Priority for despatch in to the Grid ahead of merit / any other source of supplysubject to any overall restrictions on the proportion of power that may be boughtfrom such sources, which may be imposed by the Govt. / Regulator.

16 Royalty (Payment) • Exempted for first 15 years of operation on sale of power out side thestate/ J&KPDD / consumers in rural areas not served or inadequatelyserved by the concerned existing distribution licensee.

• For sale to other parties or to J&KPDD after 15 years, a royalty of 12% ofnet energy wheeled, after deducting wheeling charges, or supplied wouldbe charged.

17 Incentives by State • There will not be any entry tax on power generation, transmissionGovernment equipment and building material for projects.


• Small Hydro Project shall be treated as an industry and few incentivesavailable to industrial units in backward areas shall also be available tothese units including toll tax exemption

• Income accrued from micro hydel projects to be exempted from incometax


19 Time Limit • IPP shall submit DPR & applications for statutory clearances within 32months from the date of allotment.

• IPPs to achieve the financial closure within 12 months from the date ofreceipt of all statutory approvals & clearances.

• Project to be made operational within 48 months from the date of receiptof all statutory approvals & clearances.

• Failure to reach above milestones will result in automatic cancellation ofallotment of site and forfeiture of upfront premium amount.

• IPP to pay a penalty to Govt. of J&K (GoJK) in case it fails to makeoperational the plant within the time limit.

• Penalty to be computed at the equivalent royalty revenue that would havebeen payable to GoJK had the project met the milestone.

• In case the project enjoys an exemption from royalty in the initial years,the duration of royalty exemption would be reduced by period of delay.

20 Surrender of Allotment • In case the project is not found techno-economically viable on completionof DPR, IPP may surrender the allotment within the stipulated time frameto GoJK

• On surrender, bank guarantee and premium amount paid in excess ofthreshold premium of Rs. 2 lacs/MW to be refunded back to IPP

21 Role of JKPDD Preparation of the standard wheeling and banking agreement draft, determinationof evacuation requirements and overseeing banking, dispatch and royaltyarrangements.

22 Role of J&KSPDC • Preparation of pre-feasibility studies, carrying out the bidding process andmonitoring of the development of allotted projects / delivery as per timeschedule.

• J&KSPDC will not participate in bidding process. However, after allotment,upon request from the IPP, the J&KSPDC may consider participating as aminority partner (with less than 50% share holding interest) or performcertain tasks for the bidder on a consultancy basis.

23 Regulatory Over Sight Aspects of this policy that require regulatory approvals would be subject to suchapprovals in the manner approved by the Regulator.

24 Due Diligence Applicant / IPP shall be responsible for carrying out due diligence with regard tohis compliance responsibilities under various applicable central / state / otherlaws, rules and regulations and ensure compliance with the same.

25 Power to Resolve Difficulties Vested with the Government of Jammu & Kashmir


KARNATAKA RENEWABLE ENERGY POLICY

2009-14 DATED: 19 JANUARY 2010


1 Order No. EN 354 NCE 2008 BANGALORE, DATED 19th JANUARY, 2010

2 Title Karnataka Renewable Energy Policy 2009-14


4 Time Period Valid for 5 years up to 2014

5 Scope of Policy Development of all sectors of Renewable Energy sources including EnergyConservation and Energy Efficiency

6 Applicable • All RE projects sanctioned prior to commencement of the policy, projectsunder development and those already commissioned.

• The policy covers the Energy Efficiency and Energy Conservation alongwith Demand Side Management (DSM) and Clean DevelopmentMechanism (CDM) implementation

7 Sale of Power It is obligatory to sell the electricity generated from RE projects to the respectivegeographical ESCOMs in which the project is located, at the Tariff determinedby KERC

8 Potential Proposed to be Installed Capacity and Proposed Targets for 2009-14harnessed by 2014 RE Source Potential Installed Capacity Addition

(MW) Capacity by 2014 (MW)(MW) Target

Wind Power 12950 1368 2969

Mini and Small Hydro 3000 416 600

Cogeneration in Sugar 1500 535 281Industry

Biomass/Bio-gas 1000 81 300

Waste to Energy 135 - 50

Total 18500 2400 4200

9 Land for RE Projects • Government to provide land for development of RE Projects under LandRevenue Act to Karnataka Renewable Energy Development Limited(KREDL)

• Amendments to be made in the Karnataka Land Reforms Act to enablethe developers to purchase private land directly from owners of theland.

• For waste to energy projects, Municipal bodies to identify and givethe land to KREDL through Karnataka Industrial Area DevelopmentBoard.

• Land owner farmers to be equity partners in the RE projects for equity notless than 5% of gross energy generated

• 10% barren Government lands reserved for industrial use at declaredrenewable energy sites will be given to KREDL for developing the landfor RE projects

• Forest land identified for RE projects to be processed within a period of4 months

• Identified revenue, private and forest land to be developed by KREDL.


• KREDL will sub-lease the developed land to developer for 30 years. After30 years the project stands transferred to Government

• Land-Lease rent will be as per the prime landing rate over current marketprice on the date of handing over the projects

10 Statuary Clearances • Various Statuary Clearance for RE projects will be dealt by KREDL withconcerned department and agencies.

• Developers to apply in prescribed formats to different departments andgive a copy to KREDL

• KREDL to pursue with concerned department for approval and clearanceswithin 90 days of the applications submitted for all departments/agenciesand 120 days for forest clearance

• Issues pending for longer period to be placed before the Quarterly ReviewMeetings held at the level of Chief Secretary, Government of Karnataka

• KREDL to obtain all statuary clearances before handing over lands for REproject

11 Renewable Energy Special 10% of all SEZ land will be kept at the disposal of KREDL for development ofEconomic Zone (SEZ) RE projects

12 Implementation of Renewable RE project identified by KREDL will be offered for development on Public PrivateEnergy Projects Partnership/Build Own Operate Transfer Mode specially in wind and mini hydro

projects

13 Allotment Committee A committee under Chairmanship of Principal Secretary, Energy Departmentwill consider for allotment of capacity of the RE projects to the privateentrepreneurs

14 Single Window Clearance A state level empowered committee under the Chairmanship of Chief Secretaryto provide single window clearance to projects which are not accordedclearances/approvals within the specified time period

15 Evacuation Arrangement KPTCL to provide transmission lines and developers to bear the cost of linesfrom the project site to the sub-stations as per grid norms

16 Time Limit for Project It is mandatory for the developer to commission the project with gridCompletion synchronization within a period of 3 years from the date of statuary clearance

17 Regulatory Issues and RE • Generation of electricity from RE sources to be treated as industry underObligation provisions of Industrial policy 2009 and incentives available to industrial

units to be extended to RE projects

• State Government is committed to procure RE power subject to KERCguidelines and reserves the first right of refusal or purchase of power

• Energy supply companies / Distribution licensees to procure power at tariffdetermined by KERC

• After the plant completes 11 years, it has to sell power to Energy SupplyCompanies on tariff based on variable cost as per KERC norms

(i) Solar Tariff Incentives • KERC has determined solar tariff at Rs. 3.40 paise/unit.

• MNRE supported solar grid connected projects of 1MW and above haveincentive up to Rs. 12/kWh for solar PV and Rs. 10/kWh for solar thermalprojects in addition to tariff allowed by KERC.

• Same incentives to be applicable to solar grid connected projects as perthis policy

(ii) Roof Top Solar Tariff • Roof Top grid connected solar kWp projects of 5 kWp to 100 kWp to beconnected at 415 V, 3 phase, 11 kV level of distribution licensees withmaximum energy injection to be not more than 70% of the consumptionfrom distribution licensee sources

• Injection exceeding 70% of consumption in a billing period not to beconsidered for commercial purpose, neither the deficit to be carried forwardto next billing period


• The above power will be eligible for a tariff of Rs. 3.40 /kWh along with netmetering facility

• Incentive from MNRE to be passed on to the developer

• Roof top system will be eligible for any other subsidies extended to theroof top projects

• Solar Photo Voltaic systems below 2 kWp will be battery backed isolatedstand alone systems

• Isolated Solar Photo Voltaic sources up to 200 kWp will be for RuralApplications

(iii) Wheeling Charges 5%

(iv) Banking of Electricity Allowed for energy banked with KPTCL/Distribution licensee

(v) PPA • Sale of electricity by developer to be governed by PPA witnessed by KERC

• PPA to be executed in a time bound manner

• Power Company of Karnataka Ltd. to assign PPAs to ESCOMS with backto back arrangements

(vi) Settlements • All transactions between KPTCL/ESCOMS/Distribution Licensees and theDeveloper involving wheeling or sale of power to be settled on monthlybasis

• KPTCL/Distribution licensees to pay interest on payment delayed beyonda month @ SBI short term PLR for delayed amount for actual period ofdelay

(vii) Grid Tie Policy and Grid connected solar power system installed on commercial establishmentNet Metering and individual homes to get net metering facility to feed excess power back to

the grid with power credits accruing to the photovoltaic energy producer

(viii) Exemption from 50% of the installed capacity assigned for captive useDemand cut

(ix) Security Deposit & Royalty To be determined by the Government

18 (i) Policy on Financial Incentives Incentives allowed by MNRE/Government of India regarding detailed surveyand investigation/DPR, generation based incentive etc. to be passed on to thedeveloper through KREDL

(ii) Entry Tax As per industrial policy 2009-10

(iii) Value Added Tax (VAT) VAT on RE equipments, instruments and energy efficient power savingappliances directly purchased by consumer to be considered for suitablerevision under Karnataka State Sales Act

(iv) Incentives for Biomass Government to facilitate Biomass power plant with an enabling Tariff atmospherePower Generation Projects in co-ordination with KERC

(v) Letter of Credit (LC) • ESCOMs to extend facility of LC to the developer for realizing payment inscheduled period for power sold to ESCOMs.

• Cost of opening of LC to be reimbursed to ESCOMs by KREDL

(vi) Registration Various agreements executed by developers with different Governmentdepartments other than land leased including forest land leased to be consideredfor revision of registration fee

19 Energy Conservation & Energy • State level committee to guide on the issuesEfficiency Measures • Energy auditing and energy efficiency measures will be mandatory for all

industrial and commercial installation of 600 kVA and above contractdemand

• Rebate in electricity bill for domestic users at the rate of Rs 100 per monthfor installation of solar water heaters


• Energy Conservation & Energy Efficiency Measures are mandatory for allpublic utilities

• Large Industries with 2000 kVA and above connected load to produce atleast 5% of their requirement through captive power plant using RE sources

20 Wind Projects • KREDL to offer identified windy sites for development on Public PrivateParticipation/Build Operate Own and Transfer (BOOT) mode restricted to50 MW at a given area each time

• In case of potential in the said location, further allocation to be consideredafter successful commissioning of allotted project

• Only three sites to be considered

• Government waste land in windy locations identified for industrialdevelopment to be offered for wind projects

• Projects more than 10 years old to be considered for augmentation withefficient higher capacity wind turbine generators

• Small wind generators up to 10 kW to be promoted for stand alone systems·KPTCL to be considered for allotment of wind power projects above 500MW and solar projects above 100 MW

• Certain geographical regions have been reserved for allotment of windpower projects to KPTCL

21 Small Hydro Projects • KREDL to identify potential for development on Public Private Participation/Build Operate Own and Transfer (BOOT) mode

• Mini Hydro projects in the Western Ghats Districts/Forest areas will berestricted to maximum 5 MW and preferably Run of the River (ROR)projects

• PICO hydel projects less than 10 kW will be identified by KREDL in fasttrack mode and central financial assistance of 90% of the PICO hydelprojects cost provided by MNRE to be passed on to eligible beneficiaries

22 Biomass Projects Government waste lands to be identified and offered to setup biomass projects

23 Co-generation in Industry Industries to be encouraged for co-generation by extending capital subsidyscheme as one time grant subject to surplus power fed to grid

24 Benefits under CDM KREDL will facilitate to avail CDM benefits for RE projects

25 Facilitation KREDL to be the Nodal Agency for development of renewable energy, energyefficiency and energy conservation programmes and implementation of RE policyand all related works

26 Environmental Issues Developer to make suitable financial provisions for taking care of allenvironmental issues

27 Local Employment RE projects to provide employment to local peoples in respect of unskilled/skilled staff and other non-executives for execution and O&M of the project

28 Monitoring High level inter departmental review committee to be constituted to regularlymonitor implementation of all provisions of the policy

29 Amendment/Relaxation etc Vested with Government of Karnataka


GOVERNMENT OF KERALA

RENEWABLE ENERGY POLICY


1 Order G.O.(MS) No. 16/2002/STED, dated 03.04.2002

2 Title Kerala Renewable Energy Policy

3 Objective • Development, propagation and promotion of Non-conventional Energysources.

• Provision of single window services for project clearance etc.

4 Nodal Agency • Agency for Non conventional Energy and Rural Technology (ANERT)

• It will co-ordinate all activities relating to Renewable Energy Development& function as a single window clearing agency for all renewable energypower projects including small hydel power plants up to and including 3MW, for necessary clearances and approvals.

• Kerala state Electricity Board (KSEB) will be the authority for SHP projectsabove 3 MW and up to 25 MW.

5 Eligible Producers • Companies, co-operative, partnerships, Local Self Governments,registered societies, NGOs, individuals etc.

• Power producers generating grid-grade electricity including powerproducers from 'stand alone projects' using Non-conventional EnergySources

• SHP Power producers having installed station capacity of and below 25MW

• Power producers generating electricity for captive consumption

6 Grid Interfacing • Interfacing, including transformers, panels, kiosk protection, metering,HT lines from points of generation to the nearest HT line etc. as well astheir maintenance will be undertaken by the producer as per thespecifications and requirements of KSEB, at producer’s cost.

• Alternatively, these works and their maintenance could be undertaken bythe Board at charges to be decided by the Board.

• KSEB to undertake augmentation of the sub-station capacity andtransmission lines including laying of transmission lines

• The producer to install meters to measure the outflow and inflow of energybased on KSEB instructions.

7 Sale of Power (Tariff) • Power procured by KSEB from SHP at a ceiling rate of Rs.2.50 per unitand from other RE sources at ceiling rate of Rs. 2.80 per unit with 2000-01 as base year and 5% escalation every year for 5 years

• There after the rate shall be mutually settled between KSEB and theproducer, in all cases of Renewable Energy sources including SHP.

• In special cases, the committee will study and recommend to Governmentfor considering a higher tariff.

• All transactions between KSEB and producer involving wheeling, bankingor sale of power to be settled on a monthly basis

8 Banking • 100% for the period from June to February every financial year.

• Allowed from March to June

• Producer can take this banked power back only during the period fromJune to February in the same financial year.


• Accounting to be done at the end of every financial year.

• If the banked energy is not utilized at the end of the year, it will lapse andthe same can be purchased by KSEB at the average selling rate of KSEBapplicable during the corresponding year.

9 Wheeling KSEB to transmit on its grid the power generated by producer and make itavailable to him for captive use or for banking, at a uniform wheeling charge of5 per cent of energy fed into the grid, including transmission loss

10 Evacuation Arrangement • KSEB to initially bear the expenditure for erection of hightension substations and transmission infrastructure.

• ANERT to recover 50 per cent of this expenditure from the power projectpromoters and give it to KSEB.

• Developers to bear the cost of transmission lines from the sub station tothe project and all other related equipment such as metering arrangementand protection system, capacitor banks etc.

11 Settlement All transactions involving wheeling, banking or sale of power to be settled on amonthly basis.

12 Power Purchase Agreement KSEB and eligible producers to enter into a Power Purchase Agreement (PPA)for a minimum period of five years.

13 Security • KSEB to provide facilities of an irrevocable, divisible, revolving andconfirmed stand by Letter of Credit (LC) by any Nationalised Bank.

• The amount of LC to be equal to the Expected Payment for one month byBoard.

14 Incentives by State All new projects producing power from Renewable Energy Sources to beGovernment given industry status under the schemes administrated by Industries Department

and incentives to be made available to them.

15 Entry Tax/ Octroi refund Exempted

16 Use of Energy Conservation Mandatory to Conserve Energy.Device

17 Statutory Regulations Large Industries having 2000 KVA and above as connected load, should produceat least 5 per cent of their requirement through captive power plants using RESources

18 General Conditions • Choice of Green Pricing is given to interested customers, who choose topay extra for the energy generated from RE Sources (Green Energy).

• An appraisal committee with representatives from ANERT, KSEB, PowerDepartment (Government of Kerala) and two or more experts in thecorresponding field (depending on the type of project) to be constituted toco-ordinate matters relating to different renewable energy projects.



GUIDELINES FOR DEVELOPMENT OF WIND FARMS IN PRIVATE LAND


1 Order GO (MS) No.7/2007/PD dated 11-05-2007 & Amendment GO (Rt.) No. 295/08/PD dated 22.11.2008

2 Title Guidelines for Development of Wind Farms in Private Land

3 Objective To ensure optimum utilization of natural resources to suit the overalldevelopment of the state.

4 Eligibility • Any individual, Company, Body corporate, Partnership firm, Joint venture-whether incorporated or not, Artificial judicial person

• Any person, as defined in Electricity Act-2003, who intends to set up captivegenerating plants for its own consumption within the State.

• Preference for allotment for setting up Wind farms as captive generatingplants to be given to HT / EHT industrial consumers having settledundisputed dues with KSEB / State Utility /Local bodies.

• Government not to allow development of wind farm as CPPs by powerintensive units and units which do not strictly adhere to the pollutioncontrol standards laid out from lime to time.

• Developer to obtain Technical approval from Agency for Non-conventionalEnergy and Rural Technology (ANERT)

5 Procedure for Technical • Developer to submit technical proposal in the prescribed format afterApproval (Proposed) conducting survey/investigation and finalization of Wind Electric Generators

(WEG) to ANERT.

• A Demand Draft in favour of Director, ANERT, towards non-refundableprocessing fee, to be sent along with the technical proposal.

• Technical proposal with out Demand draft will be rejected

• Certified copy of title deeds and copy of sale agreement / lease agreement/consent letter from owner of the land to be submitted along with thetechnical proposal.

• Documents relating to the proposed land to be identified by ANERT

• According technical approval, to the proposal no way indicatesconfirmation of any right of the developer on the proposed land.

• ANERT to scrutinize and take a decision on the technical proposal withina period of 120 days from the date of receipt.

• ANERT to inform developer for any defect within 60 days from the date ofreceipt of proposal and give the developer one month time to resubmit theproposal after rectifying all the defects.

• Developer to proceed with the implementation of the project if the TechnicalProposal is not rejected within 120 days after receipt of modified proposalby ANERT.

• Technical approval shall be valid for 2 years from the date of issue.

• On getting technical clearance, DPR to be submitted by the developer toANERT before starting the installation work.

6 Technical Proposal • Technical proposal to cover all aspects connected with the developmentof the Wind farm including technical specifications of WEGs, details of theproposed land, information of the location of WEGs, spacing betweenWEGs boundary clearances, evacuation plan etc.


• Developer to ascertain the feasibility of the site and expected energyoutput from the Wind farm prior lo submission of technical proposal.

7 Infrastructure Development • Developer at their own cost and responsibility to carry out necessaryinfrastructure development.

• Government in consultation with KSEB/STU to fix the development chargesfrom time to time on per Mega watt (MW) basis and the developers toremit the charges to Kerala State Electricity Board (KSEB)/State TramissionUtility (STU).

• In addition developer to pay development charge to KSEB/STU.

• KSEB/STU to issue permission for interconnection to the grid on a firstcome first served basis based on payment of the development charges

• For small developers proposing to install single WEG, KSEB/STU maypermit payment of the development charges in 2 equal installments (onebefore interconnection permission and other before interconnection)

• In the case of small developers (proposing to install WEGs of capacity upto 1 mw), KSEB/STU may permit interconnection to the grid on paymentof 50% of the development charges and the balance to be paid beforeinterconnection.

• For technical proposals already under consideration as on 31-12-2006,the infrastructure development charge is tentatively fixed as Rs.20 lakhsper MW which will be finalised in consultation with KSEB and the difference,if any, will be settled between the developer and KSEB/STU

8 Interconnection Permission • Application for interconnection for power evacuation to be submitted toKSEB/STU in the prescribed format with a copy lo ANERT. Applicationshall contain

(a) Technical details of WEGs and their locations.

(b) Proposed evacuation plan including specifications of transformer,tie-line, transmission line/sub-transmission line, metering andprotective equipment etc. and drawings.

(c) Estimate of implementing the above evacuation plan.

(d) Non-refundable application fee of Rs.20,000/MW to be paid asDemand Draft in favour of KSEB/STU.

• Developer to enter into bulk power supply/wheeling agreement with KSEB/STU/ Successor entities of KSEB or other buyers for sale of power.

• Power to be sold to other buyers only if KSEB/ Successor entities of KSEBrefuses to purchase power.

9 Evacuation Facility • KSEB/STU to develop the evacuation facility as per master plan preparedin consultation with ANERT to evacuate the power from each of thepotential areas.

• Plan to include construction of pooling station, transmission/sub-transmission line from pooling station to KSEB/STU substation andaugmentation / up-gradation required for existing substations and grid forfurther evacuation.

• KSEB/STU to prepare an estimate including supervision charges payableto KSEB/STU for such evacuation facility beyond and including poolingstation.

• Construction and maintenance of evacuation lines from WEGs to thepooling station to be at Developer's cost and responsibility

• In case developers undertakes development of evacuation facility, KSEB/STU may permit such requests upon satisfaction of Developer's technicaland financial qualifications.


• Developer to develop the evacuation facility as per the master plan in fullor part as per KSEB/STU design.

• However in cases where the evacuation facility is developed by thedeveloper in part, that has lo be carried out according to KSEB/STU'sproposal and not according to the capacity requirement of thedeveloper.

• KSEB/STU to reimburse the cost as per the sanctioned estimate for thework after deducting supervision charges.

• Developer shall be eligible for adjustment of infrastructure developmentcharges in the estimated cost..

10 Metering Necessary main and check ABT compatible Special Energy Meters (SEM) of0.2 accuracy class having import-export registering facility as per applicableIEC / BIS standards to be installed at the cost of developer, as per applicableCEA (Installation & Operation of Meters) regulations 2006 with its amendmentthere upon.

11 Type Certification • C-WET / MNRE approved machines only to be given Technical Approvalby ANERT.

• Technical Proposals with machines under type certification can besubmitted and in such cases, a conditional Technical Approval to begiven.

• However, installation can be started only after obtaining permission fromANERT producing the type approval /certification from C-WET.

12 Distance between WEGs • Minimum distance between any two WEGs (existing and having technicaland Boundary Clearances approval) is 5 times the diameter of the rotor in the predominant wind

direction and 3 times the diameter of the rotor in a direction perpendicularlo the predominant wind direction.

• The distance from WEGs to the boundary of the plot proposed by developerto be at least half of the rotor diameter plus 5 meters.

• Site to be inspected by a technical committee constituted by ANERT andits recommendations regarding boundary clearance inter machine spacingetc. shall be binding on developer.

13 Technical Requirements • Developer to install adequate compensating equipment to maintain powerfactor more than 0.95 lag.

• Developer to pay for the reactive power drawn by the WEG's at the ratedecided by KSERC.

• Developer to comply with grid code including load dispatch and systemoperation schedule, metering, protection code. safety code etc and allaccepted codes and prudent utility practices as applicable from time lotime

14 Transferability of • Technical approval is transferable lo investors upon satisfying the EligibilityTechnical Approval conditions, as above, if the transferee is ready to abide by terms and

conditions on which technical approval had been issued for the project.

• For transferring the technical approval, the developer to submit a transferapplication along with the transferee's undertaking and remit anonrefundable transfer fee of Rs. 100000/- per MW capacity to ANERT.

• If the transferring unit is below 1 MW the same to be counted as 1 MW forthis purpose.

15 CDM Benefits Benefits of Carbon Credit, if any available, to be shared equally between STU/buyer and investor

16 General Conditions • Developer to pay taxes, duties and other levies to the Central / StateGovernment as per statutes and rules in force.


• Developer to develop the Wind farm in accordance with the TechnicalApproval given by ANERT

• Any remedial / compensatory measures directed by competent agenciesto protect environment or any other activity found necessary by concernedGovernment Departments/ Local Bodies have to be carried out by theDeveloper at his own cost.

• Developer to abide by the rules and regulations framed by the Government.

• All directions/ approvals/ rules laid down in the relevant Acts/ controls/rectifications issued by CEA / CERC/ SREB/ KSERC or other GovernmentDepartments/ Agencies from time to time as adopted by the Governmentshall be binding on Developer.

• In case of dispute, the interpretation of the guidelines by the Governmentto be final. In all such matters, to the extent possible, an opportunity willbe given to the affected stakeholders.



GUIDELINES FOR THE DEVELOPMENT OF HYDEL SCHEME BY PRIVATE SECTOR -CAPTIVE POWER PROJECTS


1 Order G.O. (MS) No.5/2006/PD dated 17-03-2006

2 Title Guidelines for the development of Hydel Scheme by Private Sector - CaptivePower Projects

3 Eligibility • Person as defined in EA 2003 who intends to set CPP for its ownconsumption within the State.

• Preference to HT/EHT industrial consumer

4 Installed Capacity To be fixed for each project by the Government

5 Capacity Ceiling for Allotment Annual generation potential from the projects, not to exceed the annualrequirement of the company (based on the past 3 years consumption) pluscapacity to be added within the next 5 years from the date of allotment.

6 Milestone for Development (i) Developer to submit Techno Economic Feasibility Report (TEFR) toof Project. Government for approval within 15 months from the date of allotment

(ii) After TEFR approval developer to obtain all statutory clearance andapprovals within 12 months of approval of TEFR and financial closurewithin 6 months thereafter.

(iii) Project to be made operational within 36 months from date of financialclosure.

(iv) Failure to reach any of milestones i & ii above to result in automaticcancellation of allotment of site and forfeiture of upfront premium and nocompensation payable to CPP.

(v) If the project is not made operational within 36 months, CPP to pay penaltyto Government.

(vi) Developer may surrender the allotment back if on completion of TEFRwithin the time frame the project is found techno economically unviable.

(vii) TEFR to become property of Govt. and 75% upfront premium returned tothe developer.

7 Basis of Allotment • Applicant to submit request for qualification (RFQ) and price bid documents(RPF) in the prescribed formats.

• Pre-qualification evaluation to be based on balance sheet, annual reportand evidence of financial capability and technical capability. Weightageto be given to financial capability, technical capability and past experienceetc. based on the above criterion.

• Applicants to be short listed and qualified based on the above.

• Proposals and Bids of the short listed qualified applicants to be consideredfor allotment.

• Bidders to quote premium per MW payable upfront to the Government.

• Project to be allotted to the highest Bids.

• Upfront premium to be the primary consideration of allotment.

8 Purchase of Excess Power • Kerala State Electricity Board (KSEB) to have first right to purchase excesspower over the captive consumption.

• Otherwise CPP is allowed to sell to third party


• Developer to pay surcharge and transmission & wheeling charges asdecided by KSREC for energy sold to third party consumer/ distributionlicensee/ power trading company.

• Purchase of surplus power by KSEB, to be at a tariff approved by KSERC

• Developer to enter in to a wheeling agreement with KSEB/ STU forevacuation of power.

• Wheeling transaction to be settled on monthly basis.

9 Captive Consumption • CPP to have open access for carrying power from their plant to theirdestination of use subject to availability of transmission facility.

• Wheeling charge and transmission losses to be decided by KSERC.

• Energy consumption from grid over and above captive consumption to becharged at KSEB rates for that category

10 Transmission Facility and • Developer to construct & maintain the transmission facilities up to KSEB/Grid Interface STU grid at its own cost

• Developer to bear the cost of any modification/ up- gradation of sub stationof KSEB/ STU which draws power from the project

• Proposal for transmission facilities and interfacing equipment etc to besubmitted to KSEB/STU along with TEFR for approval within 15 monthsof date of allotment

• Developer to install & maintain ToD meter and allied equipment asprescribed by KSEB/ STU.

• KSEB/ STU along with developer to jointly seal meter & metering device.

11 Maintenance Maintenance of project components, equipment and transmission lines up tothe interconnection point to be carried out by the developer at his cost undersupervision of KSEB.

12 Project Cost • To cover all cost including civil, electrical and mechanical work, cost oftransmission lines up to KSEB grid , up-gradation / modification of KSEBsubstation.

• Developer to arrange financial requirement in accordance with theguidelines

13 Project Repot Developer to procure DPR from KSEB for projects where the DPR has beenprepared by KSEB

14 Project Information KSEB/ any other agency authorized by the government to provide informationsuch as project site, hydrological details, transmission access etc to the bidderon a cost as specified in bid document

15 Metering Main and check meters having import-export registering facility and alliedequipment as prescribed by KSEB to be installed at the inter connection pointand maintained by the developer at his own cost.

16 Accounting Energy fed in to the grid and supplied to the company by the Board to be settledon annual basis.

Accounting year : From 1st June to 31st May

17 Consumption Restriction Developer to abide by grid discipline & not entitled for any compensation in theevent of grid failure, shut down etc. resulting in non consumption of generatedelectricity.

18 Boot Period • 30 years from the scheduled date of allotment of the project.

• Thereafter revert back to Government/KSEB or extended further onmutually agreed terms.

19 General Condition • Developer to pay all taxes, duties and other levies to the Central or StateGovernment as per the rules.


• All the energy transaction and bills to be settled on monthly basis.

• Project not transferable, other than take over by Government afterallotment.

• In case developer does not commence the work on the project withinstipulated time, Govt. reserves the right to cancel the allotment, and takeover the project with out giving any compensation.

• Construction of the project to be strictly as per TEFR and the designspecification approved by KSEB

• Developer to utilise consultancy services of KSEB for field investigation,preparation of TEFR, design specifications, detailed estimates, tenderdocuments etc. at mutually agreed rates and conditions.

• If developer leaves project incomplete or close the industry or abandonthe project or violates allotment conditions, Government reserves the rightto take over the project with out compensation and free from allencumbrances.

• Developer not to pledge, hypothecate or mortgage Govt./ KSEB land without approval.

• On completion of BOOT period the entire project components includingtransmission system shall stand transferred to Govt. in proper workingcondition free of cost and free of all encumbrances.

• In case not done so, Govt. may recover the property with all projectcomponents without any liability.

• Any remedial / compensatory measures to protect the environment orotherwise to be carried out by developer at his cost.

• Any tail race scheme, dam toe and other regulated flows are open only toKSEB/ successor entities.

• Project to be implemented as per TEFR and any violation which restrictsthe functions of existing hydel station to result in cancellation of allotment.

• In the event of any dispute, the interpretation of these guidelines made byGovernment to be final.



GUIDELINES FOR THE DEVELOPMENT OF HYDEL SCHEME BY PRIVATE SECTOR -ON BOOT BASIS BY IPPS


1 Order G.O. (MS) No.5/2006/PD dated 17-03-2006

2 Title Guidelines for the development of Hydel Scheme by Private Sector - on BOOTbasis by IPPs

3 Eligibility Any Company or body corporate or association or body of individual or artificialjudicial person

4 Installed Capacity To be fixed for each project by the Government to harness the optimumgeneration potential

5 Capacity Ceiling for Allotment Installed capacity of single Hydro Electric Project to be limited to 25 MW

6 Milestone for Development (i) Developer to submit Techno Economic Feasibility Report (TEFR) toof Project. Government for approval within 15months from the date of allotment.

(ii) After TEFR approval developer to obtain all statutory clearance andapprovals within 12 months of approval of TEFR and financial closurewithin 6 months thereafter.

(iii) Project to be made operational within 36 months from date of financialclosure.

(iv) Failure to reach any milestones i & ii to result in automatic cancellation ofallotment of site and forfeiture of implementation guarantee deposit. Nocompensation payable to IPP.

(v) If the project is not made operational within 36 months, liquidated damagesto be paid by IPP as per implementation agreement.

(vi) IPP may surrender the allotment back if on completion of TEFR within thetime frame the project is found techno economically unviable.

(vii) TEFR to become property of Govt. and 75% upfront premium returned tothe developer.

7 Boot Period 30 years from the scheduled date of allotment of the project.

8 Procedure for Selection • Allotment through two stage bidding process by inviting tenders.and Allotment • In first stage, applicant to submit request for qualification

• All bidders to be subject to pre-qualification based on balance sheet, annualreport and evidence of financial capability and technical capability.

• Weightage to be given to financial capability, technical capability and otherrelevant attributes. Based on the above criterion the applicants to be shortlisted

• In the second stage, proposals to be invited from qualified bidders.

• Proposals and bids of the short listed qualified applicants to be consideredfor allotment.

• Criterion for selection of IPP bidder to be the lowest levelised tariff rate forsale of electricity for the entire BOOT period.

9 Acceptance of Offer Government to accept or reject the offer considering the financial viability of therate.

10 Purchase of Generated Power • Kerala State Electricity Board (KSEB) to have first right to purchase powerat the bid rates subject to the approval of KSERC.

• If KSEB does not purchase power, Commission to permit non discriminateopen access as per provision of EA 2003.


11 Transmission Facility and • Developer to construct & maintain the transmission facilities up to KSEBGrid Interface grid at its own cost

• KSEB reserves the right to extra power through this transmission line.

• Developer to bear the cost of any modification/ up- gradation of sub stationof KSEB which draws power from the project.

• Proposal for transmission facilities and interfacing equipment etc to besubmitted to KSEB along with TEFR for approval within 15 months of dateof allotment

12 Maintenance Maintenance of project components, equipment and transmission lines up tothe interconnection point to be carried out by the developer at his cost undersupervision of KSEB.

13 Project Report • Company to prepare TEFR and submit to the KSEB/ any other agencyauthorized by Government for evaluation and approval.

• DPR prepared and data available for SHP to be made available to allbidders on cost

14 Metering Main and check meters having import-export registering facility and alliedequipment as prescribed by KSEB to be installed at the inter connection pointand maintained by the developer at his own cost.

15 Accounting Energy fed in to the grid and supplied to the company by the Board to be settledon monthly basis.

16 Generation Restriction • In case generation is regulated due to constraints in the power system,the generation from the scheme to be regulated/stopped as directed byLoad Dispatch Centre (LDC) without any compensation.

• In extra ordinary circumstances Developer to operate & maintain generatingstation in accordance with the directive of State Government.

17 Water Cess Not required.

18 Grid Discipline IPP to operate as per the instructions from State Load Dispatch Centre (SLDC)or KSEB/STU till formation of SLDC

19 General Condition • Construction of the project to be strictly as per TEFR and the designspecifications approved by KSEB/ any other agency authorised by theGovernment

• During implementation transfer of ownership to be permitted, subject toapproval of Government.

• Free transfer of shares permitted as specified in bid document/ PPA afterproject implementation.

• Developer to commence and complete the project as per scheduleprescribed by the concerned authority.

• Developer to develop the power station at full installed capacity and operateat optimum capacity.

• Developer to abide by the rules and regulations of Government of Kerala

• Direction of Govt/ statutory authorities shall be binding on the company.

• If developer leaves project incomplete or close the industry or abandonthe project or violates allotment conditions, Government reserves theright to take over the project with out compensation and free fromencumbrances.

• Any remedial / compensatory measures to protect the environment orotherwise to be carried out by developer at his cost.

• Developer not to pledge, hypothecate or mortgage Govt./ KSEB land without approval.


• On completion of BOOT period the entire project components includingtransmission system shall stand transferred to Govt. in proper workingcondition free of cost and free of all encumbrances.

• In case not done so, Govt. may recover the property with all projectcomponents without any liability.

• Developer to pay all taxes, duties and other levies to the Central or StateGovernment as per the rules in force.

• All the energy transactions and bills to be settled on monthly basis.

• Project to be implemented as per TEFR and any violation which restrictsthe functions of existing hydel station to result in cancellation of allotment.

• In the event of dispute, the interpretation of these guidelines made byGovernment is final.

• Tail race scheme, dam toe and other regulated flows reserved fordevelopment by KSEB or successor entities and not opened for allocationto IPP

• Prior sanction of government to be obtained for sale of surplus power outside the State


GOVERNMENT OF MADHYA PRADESH

POLICY FOR PROMOTING GENERATION OF ELECTRICITYTHROUGH NON - CONVENTIONAL ENERGY SOURCES - 2008


1 Order Notification dated 17.10. 2006 & Amendment dated 12.05.2008

2 Title Policy for Promoting Generation of Electricity through Non-Conventional EnergySources

3 Eligibility for Incentives • Any Industry, Institution or Private unit, (either by itself or as a JointVenture)

• Public sector units : Minimum capacity for stand-alone Solar PhotovoltaicUnit up to 5 kW.

• Maximum capacity for other RE Projects based on available potential.

• Developer to commence & commission the Project in prescribed time limitas given below :

Type of Project Project

Commencement Commissioning(months) (months)

Wind / Solar 3 15

Biomass City Waste 9 30

Note: State Govt. may extend prescribed time limit under unavoidablecircumstances.

4 Operative Period / Validity 5 Years

5 Purchase Rate • Rate of Power generated by RE Sources to be decided by MPERC

• Rate of Power generated from Wind Energy, (as per MPERC order dated11.06.2004 & 01.03.2006 ) are as follows

Year Rate (Rs. /kWh) Year Rate (Rs. /kWh)

1st 4.03 4th 3.52

2nd 3.86 5th 3.36

3rd 3.69

6 Third Party Sale As per Electricity Act. 2003

7 Open Access Exempted from open access charges.

8 Status of Industry Projects to be given the status of Industry & get Benefits accordingly.

9 Wheeling • Available through M. P. Power Transmission Company.

• Wheeling charges to be decided by MPERC

• 4% subsidy is available

10 Reactive Charges Payable as per rates decided by MPERC

11 Contract Demand Reduction Industrial units, if a consumer of MPSEB & have a RE Power unit/powerconsumer, will be allowed reduction in their contract demand.

12 Land Allotment • Land use permission @ Rs. 1/- (token) premium /year for 30 years or lifeof the Project to be given

• Private land to be acquired by Govt. & made available to Developer atacquisition cost


• 50% exemption on stamp duty on private land. Developer to deposit thisamount as Bank Guaranty for 21 months in case of Wind / Solar Projectand 36 months for Biomass City Waste Project.

• Bank Guaranty will be forfeited in case of non completion of Project.

• Guidelines issued by Ministry of Environment & Forest, Govt. of India andState Govt. to be applicable for Forest land

13 Power Evacuation All expenses for Power evacuation facility to be borne by Developer

14 Facilities (A) Biomass Based Projects

• No other Biomass project to be allowed within radius of 25 km of theProject

• This facility to be given only on completion of Project within specifiedtime.

• Producer to be allowed to use up to 25% conventional fuel basedon declared heat rate.

(B) Wind Energy Projects

Developer to pay @ Rs. 50,000/- / MW as non-refundable processing feealong with application.

(i) BANKING : 100% Banking of generated power is allowed subjectto:

• MPSEB / Distribution Co. to verify documents of banked powerat end of each financial year

• Banked power not to be returned by more than a fixed quantityat a time keeping in view power availability & demand.

• MPSEB to purchase balance power as per orders issued byMPERC

• MPSEB / Distribution Co. to charge 2% of Banked power asbanking charges.

(ii) Permission to be granted for certified WEG by C-WET, Chennai.

(iii) Transmission lines & related facilities to be provided as per MPERCorder dated 11.06.2004 & 01.03 2006

(iv) Land use permission for sites certified by MNES / C-WET, Chennaito be only considered.

(v) Permission for unidentified locations for carrying out Wind monitoringby Private Institutions to be given by Energy Department / MPUVN& to be certified by C-WET, Chennai .

(vi) One Private party to be allowed to install Wind monitoring mast at15 locations at a time.

(vii) If site found suitable for Wind Farm, the first right to develop it to begiven to Private Institution for area surrounding 5 km radius of mast.

(viii) If Private Institution is not able to complete the Wind monitoring &start project within 18 months time from the date of approval, theEnergy Department has right to allot that location to anotherinstitution for transfer of project use.

(ix) Private land including that of Agricultural land to be exempted fromLand Ceiling for its acquisition.

15 Sale of Power • Sale of Power from one company to its sister concern to be deemed ascaptive user of power

• Power so generated can be utilized by Generator itself or for sale to MPSEBor its Successor Company or sale to any consumer


16 Clean Development Carbon credit related financial benefits (on availability) would directly be givenMechanism (CDM) Benefit to Investor

17 Exemptions • Non Conventional Energy Plants including accessories equipments areexempted from Entry Tax / Octroi.

• Value Added Tax (if imposed in future) would be exempted

18 General Conditions • For implementation of the Projects, an Empowered Committee headed byChief Secretary has been constituted

• The units which do not intend to take benefits under this Policy to be atliberty to set up Project under Electricity Act 2003.


GOVERNMENT OF MADHYA PRADESH

INCENTIVE POLICY FOR THE DEVELOPMENT OF SMALL HYDRO POWER PROJECTS - 2006


1 Title Incentive Policy for the Development of Small Hydro Power Projects in MadhyaPradesh, 2006

2 Objective To promote generation through Small Hydropower Projects ( Estimated Potential410 MW) with Private Sector Participation.

3 Nodal Agency Water Resources Department (WRD) / Narmada Valley Development Authority(NVDA)/ Madhya Pradesh Power Generation Company Limited (MPPGCL)respectively for projects in their jurisdiction

4 Scope • All SHPs up to 25 MW capacity , identified by the WRD / NVDA / MPPGCLor a private developer.

• All projects allotted by the erstwhile Madhya Pradesh Electricity Board(MPEB) now Madhya Pradesh State Electricity Board (MPSEB) and/oryet to attain the stage of commercial production.

• SHPs can be Captive Power Projects (CPP) /Independent Power Projects(IPP).

• Identified SHPs to be notified by the WRD & NVDA.

• Sites, identified by a private Developer shall be treated as Self Identifiedsites and dealt separately under the provisions of this policy.

• Government or Semi Government organization of the State or UnionGovernment is equally eligible to avail the benefits of this policy.

5 Operative Period From the date of notification in the State Gazette till it is revised / withdrawn /amended or cancelled

6 Eligibility • The projects allotted to be on Build, Own, Operate and Transfer (BOOT)basis.

• BOOT period, to be of 30 years from COD or the life of the project whicheveris earlier.

• At the end of the BOOT period the entire project including its assets tobe transferred to the State Government free of cost. Developer to properlyinsure all the assets of the project during the currency of the BOOTagreement and maintain the same in proper condition for eventualtransfer.

• In case the land of project site has been privately acquired by thedeveloper, it shall be transferred to the State Government on paymentof cost of land at prevailing market rate determined by the districtCollector.

• At the end of BOOT period, the State Government may invite fresh bidsfor Operation & Maintenance of the project for a period of 5 years at atime on the criteria that the offer not being less than the terms andconditions on which the project was allotted to the original developer.

7 Selection Process State Govt has constituted Project Clearance & Implementation Board (PCIB)to expedite the selection process with respect to SHPs under WRD / NVDA.PCIB to:

• Determine the norms & procedures, bid documents to select the Developers

• Finalize terms & conditions of the Hydro Power Development Agreement(HPDA)


• To approve lease of Government land to the Developer

• To approve incentives available to the Developer

• To approve any interpretation / explanation / classification / amendmentof this policy proposed by WRD / NVDA.

7.1 Projects Classification The SHPs are categorized as

• Projects where a Detailed Project Report (DPR) has already been preparedby the concerned Department.

• Projects for which only potential sites have been identified, but no DPRhas been prepared.

• Projects for which neither DPR has been prepared nor sites have beenidentified.

7.2 Process of Allotment • Projects shall be offered through public invitation process for CPPs aswell as IPPs.

• In case of both IPP & CPP, the Developer shall have the option to set upthe project under a Special Purpose Vehicle (SPV)

• Bidding criterion to be pre qualification based on technical and financialcapabilities as well as past experience, and the quantum of energy thateach bidder is willing to offer free of cost to WRD/NVDA.

• Minimum free power to be offered for the projects shall be as

Sl. Estimated Installed Free power as % of actual totalNo. Capacity generation minus Auxiliary

Consumption

1. Up to 5 MW 5%, with exemption of 3 years fromthe COD

2. More than 5 MW & 8%, with exemption of 2 years fromup to 10 MW the COD

3. More than 10 MW 10%, with exemption of 1 year fromup to 25 MW the COD

• Developer to bid along with an earnest money to be specified in case ofeach project by the concerned nodal department.

• Bidding process to be time bound and the successful bidder to be intimatedof his selection by issue of a Letter of Permission (LoP).

• LoP shall entitle the bidder to take up preparation of a Techno -EconomicFeasibility Report (TEFR).

• Relevant data and information with the WRD, NVDA and MPPGCL to bemade available to the bidder without any cost.

• On the approval of TEFR, a Letter of Allotment (LoA) to be issued to thebidder, and a HPDA will be signed between State Government and theDeveloper.

(a) Bidding Process where DPR is available:

• Developers to submit their request for pre qualification alongwith offer for free supply of power.

• Criteria for pre-qualification and weightage assigned to bespecified in the bid document.

• For pre qualification, apart from the technical and financialstrengths experience of developer to be considered.

• Free power offer bids of only pre-qualified bidders to be openedand the bidder with highest free power above minimumbenchmark to be selected.


• Selected bidder to pay the cost of DPR prepared by theGovernment at rates decided by WRD/NVDA.

(b) Bidding Process where DPR is not available:

• Criteria for pre-qualification and weightage assigned to bespecified in the bid document.

• Among the pre-qualified bidders, selection of the strongestbidder will be done based on the technical and financialcapability and past experience in executing and/or runningsimilar projects.

• On payment of a prescribed fee, Letter of Intent (LoI),mentioning time limit (generally 12 months), to be issued tothe selected bidder for preparation of DPR.

• Time frame for preparation of DPR to be extendable by anothersix months.

• In case of special circumstances the PCIB may consider furtherextension of time for preparation of the DPR in its absolutediscretion.

• Bidder to submit DPR along with his offer for supply of freepower, to the WRD/NVDA.

• WRD/NVDA shall, on receipt of DPR and offer for free power,invite bids from other pre qualified bidders for quantity of freesupply of power.

• In the event of the initially selected bidder not willing to matchthe highest bid, the highest bidder will be selected and he hasto reimburse the cost of preparation of the DPR, specified inthe DPR, to initially selected bidder

• Under any circumstances (whether the project is viable or not)the bidder is not entitled for any claim or compensation fromthe Government for expenditure he has made oninvestigations, preparation of DPR and its scrutiny, etc.

(c) Selection Process for Self Identified Sites:

• Developer is to identify sites, not identified by WRD or NVDA.

• Such sites shall be treated as Self Identified Sites.

• On receipt of an offer from a developer for a self identifiedsite, and on payment of a prescribed fee, WRD/NVDA toascertain that he meets the requisite pre-qualification benchmark, and on satisfaction, seek the approval of the Developerby the PCIB.

• In case of multiple offers for the same site the principle of firstcome first serve shall apply.

• LoI, mentioning time limit (generally 12 months), to be issuedto the selected bidder for preparation of DPR.

• Time frame for preparation of DPR to be extendable byanother six months. In case of special circumstances thePCIB may consider further extension of time for preparationof the DPR in its absolute discretion.

• Bidder to submit DPR along with his offer for supply of freepower, to the WRD/NVDA.

• WRD/NVDA , on receipt of DPR and offer for free power,invite bids from other pre qualified bidders within a stipulatedtime frame, for quantity of free supply of power.


• In the event of the initially selected bidder not willing to matchthe highest bid, the highest bidder to be selected and he hasto reimburse the cost of preparation of the DPR, specified inthe DPR, to initially selected bidder

8 Development of Projects • On selection of the bidder, a LoP to be issued to him for preparation ofTEFR.

• Based on the DPR, bidder to prepare TEFR

• Bidder has to understand that the water releases shall be strictly scheduledto meet the requirements of irrigation/domestic or industrial demands andhave to maximize the energy generation without compromising on theserequirements.

• If the selected bidder is satisfied about the techno-economic viability ofthe project he shall submit the TEFR to WRD/NVDA within three months,from the date of LoP, along with the processing fee as

Sl No. Estimated Installed Capacity Processing Fee*Rs. in Lacs

1. Up to 5 MW 1.00

2. More than 5 MW & up to 10 MW 2.00

3. More than 10 MW up to 25 MW 5.00

*The fee can be revised by the PCIB from time-to-time.

• Under any circumstance (whether the project is viable or not), the selectedbidder is not entitled for any claim or compensation from the Governmentfor expenditure that he has made on investigations,

8.1 Approval of TEFR by Preparation of TEFR and its scrutiny, etc.WRD/ NVDA

• TEFR submitted by the Developer to be approved by the WRD/NVDAafter ensuring the following.

(a) It is consistent with the requirement of domestic/irrigation/industrialwater, navigation, flood control etc.

(b) It proposes to exploit the full potential of the site in terms of generationof power. Generally the developer would be expected to developthe full site to its potential in one phase only.

(c) PCIB may permit phase wise development, in case of technicalcompulsions and its decision on the matter shall be final.

(d) It meets the norms regarding dam design and safety.

• On being satisfied that all the conditions have been met, WRD/NVDAshall issue LoA to the developer within 8 days of receipt of the TEFR orsubmission of clarification to WRD/NVDA.

• Developer to deposit a performance security with WRD/NVDA and signthe HPDA within a period of 30 days of issue of the LoA.

• Performance security to be 2% of the estimated cost of the project in theform of a Bank Guarantee by a Schedule Bank acceptable to WRD/NVDAor cash security by way of a Demand Draft.

• Project shall be made operational within the time frame mentioned belowfrom the date of signing the HPDA.

Sl. No. Estimated Installed Capacity Commissioning

1. Up to 5 MW 30 Months

2. More than 5 MW & up to 10 MW 36 Months

3. More than 10 MW up to 25 MW 40 Months


• In case, PCIB extends the period of 12 months for obtaining necessaryapprovals and financial closure, the commissioning period mentioned inthe table above will be extended accordingly.

• The project development milestone up to the COD shall form part of theHPDA and may be reviewed at a specific request of the developer byWRD/NVDA based on any exigencies that may arise during thedevelopment of the project.

• On successful commissioning of the project within time frame, securitydeposit to be refunded with approval of PCIB

8.2 Land Acquisition Land if available with the Government, to be leased to developer within a periodof 30 days of signing of the HPDA in the following manner:

• If the land belongs to the WRD/NVDA, the WRD/NVDA will lease it out tothe developer under intimation to the District Collector.

• If the land belongs to the Revenue Department, the District Collector willtransfer it to WRD/NVDA and WRD/NVDA will lease it out to the developer,under intimation to the District Collector.

• If the land belongs to some other Department, the WRD/NVDA will obtainNOC of that Department, take possession of the land and lease it out tothe developer, under intimation to the District Collector.

• Premium and lease rent together for the total area of the land so leasedwill be at the rate of a token sum of Rs 1/- per year.

• Lease shall be for the period prescribed by the HPDA.

• Standard terms of lease will be approved by the PCIB.

• In case the land required by the developer is private land, Govt. will acquirethe land on developer's behalf if he so requests, but the acquisition costwill be fully met by the developer.

• In case of forest land including Revenue land classified as ‘Chote-badejhad ke jungle’, or any revenue or private land classified as forest or definedas forest, provision of Forest (Conservation) Act, 1980 and rules madethere under from time to time and instruction of Central/State Governmentshall apply.

9 Statutory Clearances • On signing of the HPDA, the developer shall seek and obtain all thenecessary approvals and also arrange for financial closure within a periodof 12 months after signing of the HPDA.

• The period can be extended by the PCIB on case to case basis if it issatisfied that the reasons for delay are beyond the control of the developers.

• WRD/NVDA to extend all possible assistance for obtaining such approvals

• In case of failure to obtain the approvals and the financial closure withinthe prescribed period, the HPDA shall stand automatically cancelled andthe performance security shall be forfeited.

• In case the project can not be set up for want of an approval from theState or the Central Government, the security shall not be forfeited.

10 Grid Interfacing • Interfacing including the transformer panels, protection, metering etc. fromthe point of generation to the nearest sub-station or an interconnectionpoint or at nearest transmission line subject to fulfilment of technical andsafety parameters in accordance with MP Grid Code, MP Electricity SupplyCode,2004, MPERC and CERC regulations shall be the responsibility ofthe Developer.

• Madhya Pradesh Power Transmission Company Limited (MPPTCL) and/or the concerned Distribution Company may take up the work and maintainthe same on cost basis to be borne by the developer.


• Any dispensation in this regard made by the Regulatory Commissionshall be final.

11 Transmission / Distribution • Developer is free to construct his own dedicated transmission linesfrom the point of generation to the point of consumption of the energy.

• He shall also have the right of open access for existing transmissionfacilities of the state

• Metering equipment, as may be stipulated by MPPTCL or respectiveDistribution Company to be installed at the production and/or consumptionsites as per the provisions of MPERC regulations on metering and MPElectricity Supply Code, 2004 at the cost of the developer.

• Any official of the MPPTCL/respective Distribution Company may inspectthe same.

11.1 Wheeling • Developer shall sign wheeling agreement with MPPTCL/respectiveDistribution Company as per terms of this policy but subject to the finaldispensation by the Regulatory Commission in respect of wheeling andtransmission/distribution losses.

• Developer shall be responsible for payment of wheeling and transmissioncharges to the MPPTCL/respective Distribution Company in case of saleof power to Third Party Consumers / Distribution Licensee / Power TradingCompany subject to the final dispensation by MPERC.

• MPPTCL or concerned State Distribution Company to facilitate wheelingof power for Third Party Sale at rates be decided by MPERC.

• State Government to extend subsidy @ 4% towards wheeling chargeswithin the State of MP.

12 Sale of Power • 100% IPP

• Surplus Power of CPP to any consumer/ Distribution companies / Powertrading Co. (PTC)

• State Distribution Co/ SPTC to have first right for refusal for purchase ofPower

13 Inspection of project • WRD/ NVDA engineers to have the right of inspection of power project.

• Developer to render all requisite help and assistance.

• Developer to maintain all records regarding capacity , generation, downtime, with relevant constrains etc. and make available these records tothe inspecting authority.

14 Jurisdiction of MPERC • MPERC has exclusive jurisdiction on those provisions of the Policy whichare within its regulatory mandate under the provision of EA 2003.

• In the event of dispute in interpretation of this policy or any clause in theagreement between developer & WRD/NVDA or MPPTCL/ TransmissionLicensee/ Distribution Licensee, the same shall be referred to MPERC tothe extent of its jurisdiction

15 General Conditions • Developers to whom CPP/IPPs were allotted by erstwhile MPEB underthe 1994 policy to have the option of continuing under the old policy or tocome under the new policy.

• Such option to be exercised by developer within one month of issue ofthis policy by making an application to WRD/NVDA, who will issue thepermission to migrate into the new policy subject to their signing of a MoUlaying down a revised implementation schedule.

• Permission to migrate will be liable to be terminated if the developer doesnot adhere to the revised implementation schedule.

• Permission of WRD/NVDA shall also be subject to dispensation by MPERC.


• IPPs will be free to change their option to CPP in due course of time &vice versa with the approval of WRD/NVDA.

• Change in option from sale to third party to Licensee and switching fromone third party consumer to other third party consumer shall also bepermissible by WRD/NVDA subject to dispensation by MPERC.

• Policy to be periodically reviewed and in normal circumstances next reviewto be after three years.

• GoMP reserves the right to amend / delete certain provisions of this policyand include additional provisions, if found necessary.

• GoMP may from time to time issue orders and practice directions in regardto the implementation of policy.However, such amendments shall be madeapplicable with prospective effect only.

• Developer to be allowed the use of approach road to the powerhouse, if itis in the possession of WRD/NVDA.

• Developer and WRD/NVDA shall carry out the maintenance of the roads,for common use, jointly.

• WRD/NVDA to provide residential quarters, if spare accommodation isavailable with the department near the project site for the developer or hisstaff during construction period, on rental basis.

• Developer to carry out the maintenance of the same, at his own cost.

16 Surrender/Transfer of • Developer shall be free to surrender the project any time before start ofAllotment the work on the project and in that case the performance security to be

forfeited by WRD/NVDA.

• Developer to have the option of transferring the project to any otherdeveloper with a written consent of WRD/NVDA and on payment ofstipulated fees & meeting the pre qualification norms and conditions.

17 Incentive • New project to be eligible for incentives only if it meets the milestonesprescribed under the HPDA.

• Projects which have migrated to this new policy shall be eligible forincentives if they meet the revised implementation schedule prescribed inthe MoU signed with them.

• In case of sale to any third party or to any PTC, the State Trading Company(STC) or State Distribution Company (SDC) to have the first right of refusal.

• STC/concerned SDC may purchase power from the project if so opted bythe Developer at rates to be decided by the MPERC.

• Open Access charges not to be payable, subject to dispensation of MPERCon the petition of WRD on issue of this policy.

• No electricity cess payable for the power supplied by the SHP.

• SHPs to be treated as Industry for the purpose of the Industrial PromotionPolicy, 2004 as well as Madhya Pradesh Industrial Investment PromotionalAssistance Scheme, 2004, and be eligible for the incentives availableunder this policy/scheme.

• Industrial consumers opting to buy power from an SHP shall be allowed acorresponding reduction in contract demand on a permanent basis subjectto dispensation of MPERC.

• No water rate shall be payable for the use of water by the SHP.

• If a developer intends to generate and distribute electricity in a rural areadeveloper shall not require any license, but shall comply with the measuresspecified in Electricity Act 2003

• Power consumed from the SHPs for the purpose of captive use or third


party sale shall be exempted from payment of Electricity Duty subject togeneration of more than 80% 0f the declared generation in the TEFR.

• In case of generation being less than 80%, the developer to producedocumentary evidence indicating the reasons which are beyond the controlof developer to WRD/NVDA, who may allow the exemption .

• Carbon Credit or any such incentive available for such SHPs shall be tothe exclusive account of the Developer.

• All the equipment/plant and Machinery brought into the state for use inthe SHP shall be exempted from payment of Entry Tax for a period of fiveyears from the date of signing of HPDA.

• For the purpose of the Madhya Pradesh Industrial Investment PromotionAssistance Scheme, 2004 relating to Assistance in respect of theCommercial and related taxes arising out of investment in the SHP, thefacility can be availed either by the SHP unit, or the industrial unit whichconsumes the energy from this SHP unit. The option to whom this benefitshould flow, to be exercised by the SHP right in the beginning.

• If the Developer is able to commission the project before the scheduleCOD he shall be entitled for incentive @ 50% of the free power to besupplied to the GoMP i.e. the developer to provide only 50% of offeredfree power from the date of actual COD to the date of scheduled COD.

• WRD/NVDA to provide assistance for obtaining incentives offered byMNES/IREDA

18 Banking Allowed .100% of energy every financial year subject to the following conditions;

• Developer has to pay 2% of the Banked energy to concerned StateDistribution company/State Power Trading Company towards the Bankingcharges.

• Banked energy to be availed to the extent as per the decision of theconcerned State Distribution company/State Power Trading Co.

• Banked energy can be availed except during Rabi season (November toFebruary) and during peak hours.

• Balance energy, if any, at the end of the financial year to be purchased bythe concerned State Distribution Company/State Power Trading Companyas per the directions of the MPERC.

19 Security Deposit On successful commissioning of the project within the stipulated period, thesecurity deposit shall be refunded /released with the approval of PCIB.

20 Delay in commissioning • In the event of delay in commissioning of the Project as per the projectdevelopment milestone for reasons attributable to the Developer exceptforce majeure, the Developer to compensate the loss of free power toGovernment of M.P. for the delayed period as per the projected powergeneration in the DPR during this period.

• Loss to be compensated in form of equivalent quantity of free power overand above the committed free power as per agreement.


GOVERNMENT OF MAHARASHTRA

NEW POLICY FOR POWER GENERATION FROM NON - CONVENTIONAL SOURCE OF ENERGY-2008 DATED14-10-2008 AND AMENDMENT DATED 03-08-2009


1 Order Government Resolution (i) No.APAU(NCE)-2007/ Pra.Kra.693/ Urja-7 dated14th October 2008 (ii) Amendment dated 03-08-2009

2 Title New Policy for Power generation from Non - Conventional Source of Energy-2008

3 Government Resolution • Target fixed for commissioning of Renewable power projects:

- Wind power projects – 2000 MW

- Cogeneration power project based on Bagasse – 1000 MW

- Biomass based power generation project – 400 MW

- Small Hydro Power Projects – 100 MW

• Once the fixed target under this policy is achieved, then new policy shallbe launched.

• It shall be binding on Promoters/ Developers/ Investors to sell 100% ofelectricity generated through non-conventional energy source to Licenseeor Client in the State.

• 100% electricity generated from Small Hydro Project up to 25 MW underIrrigation Department is permitted to sell to any licensee or a client.

• Government has the right to approve infrastructure clearance letter neededto become eligible for availing all allowable benefits for all types andcapacities of RE projects.

• Promoters/ Developers to submit project proposal to Maharashtra EnergyDevelopment Agency (MEDA).

• MEDA to examine and submit its recommendations to Government.

• Infrastructure Clearance letter will be issued after approval from theGovernment.

• MEDA to prepare a Master Plan of developing 3500 MW capacityrenewable energy project and submit to the Government for approval.

• After the Government approval the master plan will be issued by MEDAindependently.

4 Wind Power Project Following benefits will be payable for projects of 2000 MW capacity

4.1 Evacuation Arrangement • MEDA and Maharashtra State Electricity Transmission Company (MSETC)

• Maharashtra State Electricity Distribution Company (MSEDC) to jointlyundertake the survey of LV, HV and EHV substation and requiredtransmission and distribution lines of these projects.

• Private Developers to undertake erection of these substations,transmission and distribution lines as per the technical specifications andestimate approved by MSETC/MSEDCL

• Evacuation system would include strengthening or modification of existingsystem and the 33 kV lines to be connected to HV and EHV sub-stationfrom the project site.

• After commissioning, the evacuation arrangement will be transferred toMSETC/MSEDCL.

• Ownership of evacuation arrangement, maintenance and repair work torest with these companies.


4.2 Expenditure of Evacuation • For payment through Green Energy Fund, the amount of estimatedSystem expenditure approved by MSETC/ MSEDCL or the actual expenditure of

the evacuation arrangement whichever is less will be treated asevacuation expenditure.

4.3 Refund from Green Energy Fund • After the Evacuation arrangement is completely transferred to MSETC/for Evacuation Arrangement MSEDCL, MEDA to reimburse 50% of the approved expenses on theExpenditure- Subsidy evacuation arrangement to Developer/ promoter from Green Energy Fund

as a subsidy as per the availability of fund.

4.4 Approach Roads • Developer/ Promoters to submit to MEDA the lay out plan of the proposedapproach roads in the vicinity of the wind power projects.

• Developer/ Promoters to make a project report of proposed approachroads with estimated cost in consultation with PWD, Maharashtra StateRoad development Corporation

• 100% expenditure for the roads shall be payable as a subsidy fromgreen energy fund.

• Promoters/ Developers to carry out the repairs / strengthening /reinforcement work of the existing roads in PWD/ZP areas, if required fortransportation of the machinery for their project at their own cost.

• Refund of the expenditure done on these account will not be payable tothe Developer/ Promoters from Green Energy fund.

4.5 Electricity Duty • Developer using electricity generated from the project for their own captivepurpose, electricity duty will not be levied for the first 10 years from theCOD.

• This benefit will also be applicable for third party sale.

4.6 Encouragement to Co-operative • A subsidy of 11% of the total share capital of the project shall be paid fromSector green energy fund for the wind power project installed and commissioned

by Co-Operative Institutions.

4.7 Letter of Credit • MSEDCL to make available the facility of Letter of credit to the Developerfor realizing their payment in scheduled period for the sale of electricity. ·The cost of opening for the letter of credit to be reimbursed to MSEDCLfrom Green Energy Fund by MEDA as 100% subsidy.

4.8 No Objection Certificate issued by • Geology and Mining Department shall notify the sites where “No ObjectionGeology and mining Department Certificate” from this department is required to be submitted.

• It is mandatory for the Developer to produce “No Objection Certificate”issued by the Geology and Mining Department for installation of windpower project at such sites.

• Developer through MEDA, to make available the information and mapsof wind sites in the State to the Geology and Mining Department.

4.9 No Objection Certificate issued • Development Commissioner (Industries) to issue “No Objectionby Development Commissioner Certificate” within a period of two weeks.

(Industries) • Once the promoter has taken the permission for wind power project,then “No Objection Certificate” is not required separately fromDevelopment Commissioner (Industries) while transferring the windpower project in the name of investor.

4.10 Octroi Tax/ Entry Tax • 100% of refund of Octroi Tax/ Entry Tax for equipments of Wind PowerProject will be made through Green Energy Fund by MEDA

4.11 Govt. Barren Land for Wind • If the Developer/ investor of wind power project applies to Collector forPower Project on Lease Basis the barren land of Govt. at declared wind site and if the land is permissible

for industrial use as per planning, the Govt. barren shall be allotted forthe wind power project on rental basis with 30 years lease agreementwith regular terms and condition.

Note: All the facilities will be applicable to wind power projects installed aftercommissioning of 750 MW capacity under the wind policy dated 26th

February 2004 up to the declaration of this policy


5. Baggase based Co-generation Following benefits will be payable for projects of 1000 MW capacityPower Project/ EnergyGeneration Project

5.1 Evacuation Arrangement Same facility as per Wind Power Project (Sl. No 4.1 to 4.3)

5.2 Electricity duty Same facility as per Wind Power Project (Sl. No 4.5)

5.3 Capital Subsidy • For getting Capital grant of Rs.1 Cr. Per project for HV/ EHV substation, itis essential to get the HV/EHV sub - stations certified from MaharashtraState Electricity Distribution Company/ Maharashtra State ElectricityTransmission Company.

• The above capital subsidy will be disbursed only after project runs withminimum 80% PLF for minimum one year

• If Co-operative sugar factory installs projects, 100% exemption for thenext 10 years to be given on 3% purchase tax which is charged on sugarcane purchased for crushing.

• To be applicable for existing Cogeneration projects as well as new projects.

6. Agricultural waste Based Following benefits will be payable for projects of 400 MW capacity. This benefits(Biomass) Power Project will also applicable to projects which are commissioned in the year 2007-2008

6.1 Evacuation Arrangement Same facility as per Wind Power Project (Sl. No 4.1 to 4.3)

6.2 Electricity Duty Same facility as per Wind Power Project (Sl. No 4.5)

7. Small Hydro Project Following benefits will be payable for projects of 100 MW capacity.

7.1 Evacuation Arrangement Same Facility as per Wind Power Project (Sl. No 4.1 to 4.3)

7.2 Electricity Duty Same facility as per Wind Power Project (Sl. No 4.5)

7.3 Capital Subsidy • Applicable up to 5 MW Capacity SHP based on Kolhapur type weir,waterfall, and run of the river.

• Subsidy of Rs.50, 000/- per kW.

• Maximum limit of subsidy will be Rs.1.5 Cr. Per project.

Note: The above capital subsidy will be disbursed only after project runs withminimum 80% PLF for minimum 1 year.

8. Other Points • Apart from above mentioned points, all the decision taken by MERC fromtime to time will be applicable to above projects.

• All promoters/ developers/ investors who do not wish to obtain facilities –concessions under this policy, need not take infrastructure clearance fromthe Government


GOVERNMENT OF MAHARASHTRA

HYDEL POLICY FOR DEVELOPMENT OF SMALL HYDRO POWER PROJECTS -THROUGH PRIVATE PARTICIPATION


1 Order No. PVT-1204/(160/2004)/ H P Dated: 15th September 2005.

2 Title State Hydel Policy for Development of Small Hydro Power Projects

3 Objective To harness green power with help of private sector and create environment forattracting private sector.

4 Applicable Also for any Government or semi Government organization of GOM who ownswater resources.

5 Nodal Agency Government of Maharashtra, Water Resources Department (GoMWRD)

6 Operative Period • From the date of publication till revised.

• SHP allotted shall be on Build, Operate & Transfer Basis (BOT).

• BOT period to be 30 years.

• At the end of the BOT period the absolute ownership of the SHP alongwith land, switchyard & allied equipment shall automatically standtransferred to GoMWRD free of cost.

• GoMWRD may extend the BOT period at its discretion. If the period isextended, GoMWRD reserves the right to review the charges.

7.1 Process of Allotment • List of sites for SHPs to be displayed on the web site of GoMWRD.

• GoMWRD to offer projects through public notification. Bidding open toboth CPP and IPP.

• Criteria for pre-qualification of Developers to be technical & financialcapabilities, past experience and other relevant attributes of the developer.

• Main bidding documents to be issued only to pre-qualified developers.

• Minimum threshold premium mentioned in the bidding document.

• Bidders to quote a premium payable to the Government of Maharashtra(GoM) over and above threshold premium and support his bid by EarnestMoney Deposit (EMD).

• Upfront premium to be the main consideration for allotment of project.

• Threshold premium shall be Rs.50 Lakhs/MW in case of SHPs in whichGoMWRD has already made investment on trash rack and penstock.

• In other cases it shall be zero.

• GoMWRD to issue Letter of Permission (LoP) to the selected developerto empower him to make necessary investigations and prepare Techno-Economic Feasibility Report (TEFR).

• If the developer comes forward with his own site for development of theproject, GoMWRD to issue LoP directly provided the proposed project isnot already investigated by GoMWRD. Decision of Secretary (CAD), GoMshall be final.

• TEFR to be prepared, such that generation is synchronised with the releaseof water as per irrigation /domestic /industrial demands.

• GoMWRD reserves the right to decide the release schedule and modify itfrom time to time as per the requirements.

• No claims of compensation on these grounds to be entertained.


• Developer to submit the TEFR to GoMWRD within three months from thedate of LoP along-with the processing fees as given below:

Sl.No. Installed Capacity Processing Fees in Rs. lakhs.

1. Up to 999 kW 1

2. 1000 kW to 1999 kW 3.5

3. 2000 kW to 4999 kW 5

4. 5000 kW to 25000 kW 10

• Under any circumstance, whether the project is viable or not, thedeveloper is not entitled for any reimbursement of expenditure made oninvestigations, preparation of TEFR and its scrutiny.

• In normal situation development in stages will not be allowed. However,under specific conditions, Secretary (CAD), GoM is authorised to allowstage wise development.

• On receipt of LoA developer to deposit the Performance Security andsign the Hydro Power Development Agreement (HPDA) with GoMWRDwithin eight days.

• On submitting the documentary proof of clearances & financial closure ,GoMWRD to issue letter to the developer (within 8 days) to deposit theamount of Upfront Premium offered by him within one month.

• Failure of developer to deposit amount of Upfront Premium within stipulatedperiod will result into automatic cancellation of HPDA and forfeiture ofPerformance Security.

• GoMWRD to authorise the developer to start the development work within8 days from payment of Upfront Premium.

7.2 Project Implementation and • Project to be made operational within 24 months from the date ofMonitoring authorisation for development.

• During the project implementation the progress of the developer to bereviewed at various milestones and for delay if any are found to be beyondthe control of the developer, necessary time extension may be given other-wise developer would be liable to pay a penalty as detailed in the HPDA.

• Developer to insure the assets of the project and keep them insured duringthe term of HPDA.

• GoMWRD engineers to inspect the power project before and after themonsoon.

• Developer to render all requisite help and cooperation for such inspection.

• Similarly, statutory inspection from Factory inspector / Electrical Inspectorto be got done. Inspection Reports to be furnished to GoMWRD annually.

• Developer to maintain all the record regarding capacity, generation, PLF,downtime with relevant constraints etc. and make available all theserecords to inspecting authority for inspection.

7.3 Surrender of Allotment In case of surrender of allotment by developer due to any reason he will bepenalised and no compensation would be payable as indicated below:

Sl. Stage at which project PenaltyNo is surrendered

1. Before signing HPDA Forfeiture of Earnest Money Deposit exceptin the event the project is found unviable

2. After signing HPDA Forfeiture of Performance Security exceptwhen any state/central level clearances aredenied.

3. After permission for Forfeiture of Performance Security plusdevelopment is given amount of Upfront Premium.


7.4 Statutory Clearances • Developer to arrange the necessary clearances & financial closure within6 months from the date of signing HPDA.

• GoMWRD to facilitate developer in getting clearances.

• Period may be extended if there are valid reasons for such extension, &to be decided by Secretary (CAD), GoM.

• Failure of developer in arranging the various clearances & finance withina stipulated period will result into automatic cancellation of HPDA andforfeiture of Performance Security.

• In case, any of the state level or central level clearance is denied for aparticular reason the performance Security only to be refunded to thedeveloper.

7.5 Land Acquisition • Land under the possession of the government to be handed over to thedeveloper on lease rent.

• If no government land is available for setting the unit, the developer has toarrange for land acquisition from private parties at his cost.

7.6 Security Deposit Amount of Security deposit shall be such that yearly charges payable toGoMWRD on account of water royalty, maintenance charges and land leasecharges could be recovered from it.

8 Consultancy Developer may avail the Consultancy services of GoMWRD in respect ofinvestigations, preparation of TEFR, estimates, designs & drafting specificationsetc. at mutually agreed rates & conditions.

9 Generation without License Developer may establish, operate and maintain a power project with out licensesubject to :

• TEFR is approved by GOMWR

• All statutory clearances are there

• Technical standards relating to connectivity with grid as per EA are followed

10 Grid Interfacing As per MERC regulations

11.1 Transmission / Distribution • Developer may construct and maintain dedicated transmission linesfrom the generation plant to the destination of his use.

• However, he will have the right to access for existing transmission facilitiesin the State and other dispensations of MERC regarding TransmissionOpen Access.

• Local distribution licensee permitted to evacuate power from SHP directlyif he desires to do so.

• Developer to sign Energy Wheeling Agreement with Transmission entity /Distribution licensee.

• When an open access is provided by MERC, the developer is responsiblefor payment of transmission charges & surcharge thereon as decided byMERC for the energy sold to Third Party Consumer/Distribution Licensee/Power Trading Company.

• Metering of energy generated at generating station and correspondingcredit at the consumption point shall be on ToD (Time of Day) tariff slots.

11.2 Wheeling Developer to sign wheeling agreement with Transmission entity / Distributionlicensee when transmission lines of Transmission entities are used, rates ofwheeling charges and transmission losses to be as decided by MERC andwheeling transactions to be settled accordingly.

12 Banking As per MERC

13 Generation Restrictions • In case of threat to security of State, public order, natural calamity, or inpublic interest.

• Developer to follow the directions of State Government in this regard


14 No Compensation for Grid To Developer/ Third party consumer/ Captive user in the event of grid failure,Dailure shut down, interruption in power supply.

15 Developers to Pay • Water royalty at the rate of Rs.0.05 per unit of energy generated quarterly.

• Charges for maintenance of intake structure, penstock etc. at the rate ofRs 0.05 for every unit generated quarterly.

• Land lease charges for the GoMWRD land at Rs.1/kW of installed capacity,Year at beginning of FY.

• All these charges to be settled within 30 days after the receipt of the invoice.

• Thereafter the interest at S.B.I. prime lending rate plus 2% per annum ondelayed payment for delayed period to be made applicable.

• Rates of royalty, maintenance and lease charges are for the first year tobe increased every subsequent years by 5% by compounding. These tobe reviewed after 30 years if lease period is extended.

• During first 10 years after commissioning, if in any particular year, 75% ofthe 75% dependable water is not made available to the developer, waterroyalty charges and maintenance charges for that year to be waived off.

16 Taxes & Duties • Developer to pay taxes, duties & other levies as applicable unlessspecifically exempted.

• CPPs exempted from Electricity Duty and Tax on sale of electricity.

17 Transfer of Allotment Allowed with approval of GoMWRD. GoMWRD may give such approval provided,

• Financial institution has consented such transfer.

• GoMWRD is satisfied that the new developer shall consume the generatedenergy primarily for his own use ( in case of CPP only).

• Proposed developer agrees to all the terms & conditions agreed to by theoriginal developer.

• New developer deposits transfer fees with GoMWRD at Rs. 1 Lakh/ MWof installation. Transfer fee may vary as per prevailing Whole Sale PriceIndex with base index of 2003-04. Transfer fees are in addition to transferfees payable if any, to other Authority.

18 Sale of Power • To any consumer located in the state of Maharashtra or any willingdistribution licensee or any power trading company.

• However, Maharashtra Electricity Distribution Company shall have thefirst right of refusal.

• Sale of power to be as per MERC regulations.

19 Jurisdiction of MERC • MERC has jurisdiction on those provisions of Policy which are within itsregulatory mandate such as electricity sales rates, power purchaseagreements and provisions regarding wheeling, banking distribution andtransmission loss charges etc.

• MERC has jurisdiction as per the provisions of EA- 2003 as regards thepromotion of non-conventional energy sources, facilities for transmissionof energy, sale of power to any interested consumer and sharing ofpurchase of power amongst the STU/Transmission Licensee/DistributionLicensee.

• Orders regulations, directives, guidelines issued by MERC regarding theseissues from time to time shall be binding on all.

• In the event of dispute between developer & GoMWRD or STU/Transmission Licensee/Distribution Licensee, the same shall be referedto MERC.

20 Obligation of GoMWRD • Nodal officer of GoMWRD to assist in obtaining the clearances


• If the TEFR satisfies all the prerequisites, GoMWRD to approve the TEFRand issue Letter of Allotment (LoA) within one month from the date ofsubmission of TEFR or date of giving all the clarifications by developer,whichever is later.

• GoMWRD to hand over the site for project within 15 days from the accordof permission accorded to commence the work.

• Developer to be allowed to use the approach road to the power house if itis in possession of GoMWRD. Developer at his own cost shall carry outthe maintenance of the same.

• GoMWRD shall provide residential quarters, if available near the projectsite for developer for his staff during construction period on rental basis.Developer at his own cost to carry out the maintenance of the same.

• GoMWRD to make available the piece(s) of land if available for constructionof residential quarters/office of maintenance staff on reasonable terms tobe agreed between GoMWRD & Developer.

• Period of agreement to be the same as that of HPDA.

• Developer to handover such buildings to the GoMWRD at the end of theagreement free of cost.

• Developer not allowed for making any commercial use of such land.

21 General Conditions • Developers to whom CPP is allotted by GoMWRD under previous policy& willing to opt for the provisions of this policy may apply for the samealong-with the necessary processing fee of Rs. 0ne lakh per MW ofinstallation.

• GoMWRD to accord permission if all conditions fulfilled subject toprovisions of item No.19.

• Processing fee may vary prevailing Whole Sale Price Index with baseindex of 2003-04.

• IPPs & CPPs are free to change their option (entity) in due course of time.However, this permission shall be subjected to provisions of Section A-17of this policy and dispensation emerging from the tariff and procurementprocess determination exercise initiated by MERC.

• Change in option from sale to third party to Licensee and vice versa andswitching from one third party consumer to other third party consumerwithout change in entity shall also be governed by provisions of Item19.

• In normal circumstances Policy review shall be after three years.However, GoM reserves the right to amend / delete certain provisions ofthis policy.

• Such amendments shall be made applicable with prospective effects only

22 Incentive by the State • If the developer commissions the project at earlier date (given time is 24Government months), he will be exempted from water royalty charges & maintenance

charges to an extent of units generated before scheduled date ofcommissioning.

• CPPs exempted from Electricity Duty on the self consumption of electricityfor first five years after commissioning if the consumption unit is located inMaharashtra.

• CPPs exempted from tax on Sale of Electricity only if the consumptionunit is located in Maharashtra.

• Technical Consultancy at nominal charges.

• MEDA, Pune shall assist the developers in getting incentives from MNRE,GoI.


GOVERNMENT OF MANIPUR

POLICY ON RENEWABLE SOURCES FOR PROMOTION OF GENERATION THROUGHNON-CONVENTIONAL ENERGY SOURCES


1 Order No.1/1/2005- S& (Misc) dated 12-09-2006

2 Title Policy on Renewable Sources for Promoting Generation of Additional Powerthrough Non-Conventional Energy Sources

3 Nodal Agency Manipur Renewable Energy Development agency (MANIREDA)

4 Objective • To promote generation of Grid- grade Power through New & RenewableEnergy Sources like wind, solar, mini hydel, SHP, biomass and other waste.

• Ensure Provision of energy security in all villages

• Priority for village electrification by generation through RE sources.

5 Operative Period From the date of its publication in the official gazette till superseded or modified.

6 Eligible Producers • All Power producers generating Grid-grade electricity from RE Sourceswith installed capacity not exceeding 25 MW

• Producers generating electricity for captive consumption

• Companies, Co-operative, partnerships, Village Development Board/Village Authorities, individuals etc.

7 Grid Interfacing • Interfacing including transformers, panels, kiosk, protection, metering, hightension lines etc as required from the point of generation to the nearesthigh tension lines, as well as their maintenance to be undertaken by theproducer as per the specifications and requirements of the StateGovernment at the entire cost

• Alternatively, these works and their maintenance could be undertaken bythe Power Department at charges to be decided by the Department

• Power Department to undertake augmentation of the sub-station capacityat 33/11 kV or higher levels at its cost to receive the power generated.

• Power Department to undertake, at its cost, augmentation of transmissionlines, if required.

• Producer to install two separate meters at his cost, one for receipt andother for release of power from the grid, on HT side. Meter and meteringboxes to be sealed by State Govt.

• Producer to install necessary current limiting devices such as Thyristorsin the generating equipment. Capacitors of sufficient rating to be providedin the equipment to ensure power factor above 0.80

8 Facilities by PowerDepartment, Governmentof Manipur

8.1 Wheeling • Department to transmit on its grid the power generated by producer andmake it available to him for captive use or to a third party for sale withinthe State, at a uniform wheeling charge of 2% of the energy fed to thegrid,

• Third party to be a HT consumer of power.

8.2 Purchase of power by Power • Rs.2.25/- per unit (minimum)Deptt. Govt. of Manipur • Rate to be increased every year for 10 operational years.

• Thereafter the rate of increase to be mutually settled between PowerDeptt. and developer.


8.3 Settlement on monthly basis All transactions between power Deptt. and producer involving wheeling, bankingor sale of power to be settled on monthly basis

8.4 Development of SHP To be installed by MANIREDA either by direct implementation or through(up to 25 MW) producers.

8.5 Banking Allowed up to 1 year

9 Power Purchase Agreement 20 years unless Developer wants shorter period(PPA)

10 Incentives by the State Govt.

10.1 Exemption from electricity duty 5 years from COD for captive use or sale to a third party.

10.2 Grant of incentive available • Producers to be treated as industrial units and similar incentives availableto industries to them

• Concession given to Industrial units in backward areas to be provided

• Infrastructural facilities such as approach road, water supply, powerduring construction period, etc. will be provided on the lines of provisionsfor such facilities to other industrial units if such generation plant is setup in industrial area developed by State Govt.

• Incentive for generation of energy through RE sources by the Governmentof India under the following heads namely : (a) Industrial policy forRenewable energy development in India; (b) Incentives for promotion ofrenewable emery/ non conventional energy sources and (c) Policymeasures in vogue to be applied in Manipur as given in the Annexure-I,Annexure-II and Annexure-III. (Refer policy)

• Exemption of tax on RE devices and spare parts.

10.3 Sale Tax Exempted

11 Facilities by Manipur • All scheme under RE Sources to be implemented through MANIREDARenewable Energy • To facilitate detailed survey, preparation of DPR, funding, support &Development agency imparting training for project management and training etc.(MANIREDA) • Accord of clearances for execution of RE projects.

• Grant of loans by IREDA & MNRE• Clearance for the project generating electricity from RE Sources at the

State and Central levels.• Incase of failure to get private investors to take up the projects for

electrification of villages, MANIREDA to take up the project. In such casesitem not funded by MNRE including grid interfacing mentioned under item7 above shall be borne by the State Government as share of Statecounterpart funding. Appropriate allocation of funds to be made by planningDeptt. to meet such liabilities.

12 Availability of Water for • Allowed to use water for power generation, wherever possible.Power Generation • Cost of modification(s) required, if any, in the existing canal system to be

done by the Irrigation Department, at the cost of the producer.

• Royalty for use of water at a rate not exceeding 10% of the electricity tarifffor electricity consumers.

13 Application and Clearances • Producers to submit application for setting up projects and grid interfacingto MANIREDA/ Power Deptt., Govt of Manipur

• MANIREDA/ Power Deptt. to provide clearances at the earliest.• An agreement to be entered within one month from the date of clearance.• If the applicant does not take effective steps (i.e., at least 10% of the total

project cost not incurred within six months) to implement the project, theagreement to be terminated and site to be allotted to another applicant.

14 Monitoring by State Level SLAC headed by Chief Secretary , to monitor the progress of generation ofAdvisory Council (SLAC) electricity through RE source , undertake review of policy, to aid and advice the

State Nodal Agency to make necessary changes according to necessity etc.


GOVERNMENT OF MEGHALAYA

POLICY FOR GENERATION THROUGH RENEWABLE ENERGY SOURCES


1 Title Policy for Promoting Generation of Power through Non-conventional EnergySources

2 Eligible Producers • Power producing entrepreneur. Companies, cooperative, partnershipindividuals etc.

• All power producers generating grid-grade electricity.

• It is compulsory for Developers to sell electricity to DISCOM or its successorcompany.

• Power producers having installed capacity of less than 10 kW and morethan 25 MW will not be treated as "Eligible Producers".

• Power producers producing electricity for captive consumption

3 Grid Interfacing • Interfacing, including transformers, panels kiosk, protection metering, HTlines from the points of generation to the nearest HT lines etc. as well astheir maintenance will be undertaken by the producers, as per thespecification and requirements of the DISCOM, and producer to bear theentire cost.

• Alternatively, these works and their maintenance could be undertaken bythe DISCOM at charges to be decided by the DISCOM/ SERC when it isset up.

• Two separate meters, one for import and other for export of power from/to the grid, to be installed on the HT side by the eligible producers at hiscost.

• Meters and metering boxes will be sealed by the State Transmission Utility(STU).

4 Wheeling Charges • STU to transmit on its grid the power for captive use of developer or to athird party nominated by eligible producers for sale within the state, at anapplicable wheeling charge.

• However, the third party will have to be HT consumer of the power unlessthis condition is relaxed specifically by the DISCOM.

5. Sale of Power DISCOM to purchase electricity offered by the developer as per the tariff fixedby the SERC on mutually accepted terms and conditions.

6 Incentives by State • Developer to use the water for power generation.Government • Royalty on the water used for Small Hydro Projects will be charged as

admissible.

• Infrastructural facilities such as approach roads, water supply, crane, powerduring construction period etc will be provided on the lines of industrialestates.

• Consumption of electricity generated by eligible producer for its captiveuse or upon sale to a nominated third party will be exempted from electricityduty for a period of 5 years.

• Producer will be eligible for Sales Tax/ VAT deferment/ remission underthe provision of schemes notified in this respect by Finance Departmentas modified from time to time


7 Process of Allotment by • Meghalaya Non-Conventional and Rural Energy Development AgencyNodal Agency (MNREDA), as a state nodal agency, shall facilitate clearances for the

projects at the State and Central levels

• MNREDA shall also facilitate grant of loans to such projects by IndianRenewal Energy Development Authority (IREDA) and subsidies by theMinistry of Non-Conventional Renewable Energy (MNRE).

• Developer to submit their applications for projects and for grid interfacingto MNREDA and DISCOM.

• MNREDA/ State government to provide clearance within a period of 2months from the date of submission of application.

• An agreement will be entered into with the applicant producers within aperiod of one month from the date of such clearance provided.


GOVERNMENT OF MIZORAM

POLICY FOR POWER THROUGH NON-CONVENTIONAL ENERGY SOURCES


1 Title Power Policy For Power through Non-Conventional Energy Sources

2 Objective To promote generation of grid-grade power through Non-Conventional EnergySources (NCES)

3 Nodal Agency Zoram Energy Development Agency (ZEDA)

4 Operative Period From the date of publication in the official gazette until superseded or modifiedby another order

5 Land acquisition Not withstanding the provisions in the existing Revenue Acts and Rules, landlease can be considered for a period not exceeding 99 years, based on merit orlife of the project, as the case may be.

6 Eligible Producers • Companies, cooperative, partnerships, individuals, charitable societies,Non-Governmental Organizations, etc.

• All power producers generating 10 kW to 25 MW of grid-grade Electricityfrom NCES.

• Renewable energy producers in the joint-sector, formed by Governmentagencies and the producers.

• Power producers producing electricity for captive consumption.

7 Grid Interfacing • Interfacing including transformers, panels, kiosk, protection, metering, hightension lines from the point of generation to the nearest high tension lines,etc. as well as their maintenance will be undertaken by the producer asper the specifications and requirements of the Power & ElectricityDepartment, and producer to bear the entire cost.

• Alternatively, the above works and their maintenance could be undertakenby the Department at charges to be decided by the Department and theproducer on mutual agreement.

• Department to undertake to augment the sub-station capacity at 33/11 kVor higher levels at its cost to receive the power generated by eligibleproducer.

• Department will also undertake, at its cost, augmentation of transmissionlines, if required.

• Power Producer at his cost to install meters to measure the outflow andinflow of energy as per the prevailing Rules and Regulations of theDepartment, which will be jointly sealed by the Department and theproducer.

• Producer to ensure the quality of power delivered in accordance with theprevailing Regulations.

8 Wheeling • Department to undertake to transmit on its grid the power generated andmake it available to him for captive use or to a third party nominated byeligible producer for sale within the State, at a uniform wheeling charge of2% of the energy supplied to the grid.

• However, the third party will have to be HT consumer of the power unlessthis condition is relaxed specifically by the Department.

9 Sale of Power (Tariff) • Department to purchase electricity at a minimum rate of Rs. 3.50/unitapplicable for the year 2002-03.

• Escalation at the rate of 5% every year on 1st April for a period of tenoperational years.


• Thereafter the rate of increase shall be mutually settled betweenDepartment and the Producer.

• It shall not be compulsory for such power producer to sell the electricitygenerated to Department

• Developers have the option with concurrence of the Department to sellthe electricity to a third party within and outside the State, at a rate to bemutually settled between them.

• However, if the third party is a consumer of Department, and needs supportof the Department's system , in case of outage of the power station, thenhe will have to pay minimum charges as per Schedule of Tariff of theDepartment in force.

• All transactions between the Department and the Producer involvingwheeling, banking or sale of power will be settled on a monthly basis.

10 Banking of Power Allowed for a period up to one year

11 Settlement on Monthly Basis All transaction between Department and Developer i.e. wheeling, banking, saleof power to be settled on monthly basis.

12 Exemption from Demand Cut A reduction in contract demand to the extent of 30% of installed capacity of thepower plants shall be permitted by the Department, in case power plant is notutilizing Department's Grid for supply of power to the consumer.

13 Power Purchase Agreement • Minimum period of 10 years between Department and Developer(PPA) • However, if any eligible producer intends to enter into PPA for shorter

period, the Department will consider such proposal on the merit of thecase

14 Security Package • Irrevocable, divisible revolving and confirmed LC by Nationalized Bank

• LC to be equal to the expected three months payments by the Department.

15 Incentives by State • Consumption of electricity generated by producers for its captive use orGovernment upon sale to a nominated third party to be exempted from electricity duty.

• Producers to be treated an eligible industry under the schemesadministered by Industry Department and incentives available to "eligibleproducers" for establishing such power generation plants.

• Concession given to the industrial unit in the backward areas to be providedto Developers.

• Infrastructural facilities such as approach road, water supply, power duringconstruction period, etc.

• To provide facilities on the lines of provisions for such facilities to otherindustrial units

• State Government to extend all incentives and facilities granted by theCentral Government for similar Undertakings in other States.

• Renewable Energy equipment and materials shall be exempted from Statesales tax.

16 Statutory Clearances • ZEDA to facilitate clearances for the project for producing electricity from(Facilitation by ZEDA) NCES at the State and Central levels

• Agency shall also facilitate grant of loans to such projects by IREDA andsubsidies by the MNES, Government of India.

17 Availability of Water for • Producers will be allowed to use water for power Generation, whereverGeneration possible.

• Cost of modification(s), in the existing canal system to be done by theMinor Irrigation Department or Agriculture Department, at the cost of theproducer.

• Department will not charge royalty for use of such water.


GOVERNMENT OF ORISSA

POLICY GUIDELINES ON POWER GENERATION FROM NON-CONVENTIONALENERGY SOURCES DATED 3RD DECEMBER, 2005


1 Order Resolution No. 6971/ST, Bhubaneswar, ST-IV-RE-13/2005, dated 3-12-2005

2 Title Policy Guidelines on Power Generation from Non-Conventional Energy Sources

3 Potential Sources

(i) Solar Power - Photovoltaic Power Mode

(ii) Biomass Energy - Bio-methanation, Gasification & Cogeneration, sanitary landfill &incineration Mode Agro/ Animal and Municipal waste

(iii) Wind Energy - Wind power generation mode

(iv) Ocean/Tidal/Wave Energy - Thermal/ Hydro Power Mode

(v) Micro/Mini/ Small - Hydro Power ModeHydro Energy

(vi) Geothermal Energy - Thermal power generation mode

4 Classification of SHP Micro Power Projects – Capacity up to 100 kW with individual generationunit a few kW to 100 kW

Mini Power Projects – Capacity up to 2000 kW (2MW) with individualgeneration unit more than 100 kW to 1000 kW(1 MW)

Small Power Projects – Capacity up to 25 MW with individual generationunit from1 MW to 5 MW

5 Operative Period With immediate effect and will remain in force for a period of 10 years

6 Eligibility Any Public Sector, Private Entrepreneur, Registered NGOs, Cooperatives,Consortia etc. fulfilling the following criteria:

• Technical soundness of the pre-feasibility survey & investigation

• Financial solvency of the party

• Experience of the party in the relevant field

State Government to enter into MOU with eligible parties

7 Grid Interfacing & Metering • Grid interfacing with the generating units to be constructed by the developerat their own cost.

• Scheme for inter connection to the nearest substation shall require theapproval of GRIDCO/ DISTCO and shall form the part of DPR.

• Main and check meters to be installed by the developer at theinterconnection points of GRIDCO/ DISTCO substation after testing.

8 Wheeling • Allowed, subject to payment of transmission/ distribution and wheelingcharges both for captive use and out side the State as approved by OERC

• Developer may supply energy to any one area or any area not served bythe licensee .

9 Open Access Permitted.

10 Power Banking Allowed on annual basis. Banking charges - 2.5% of energy dispatched.

11 Sale of Power • To the bulk suppliers/ distribution licensee on the basis of PPA with thelicensee, with the approval of OERC

• Energy from the project, not utilized during the year by developer for hiscaptive use will be treated as sold to GRIDCO/ DISTCO.


12 Incentives • Exempted from electricity duty

• Government land if available will be allotted for units generating powerfrom RE Sources

• No transmission charges shall be levied for CPP or NRSE maintenancefor a period for 5 years from the date of commissioning.

13 Guideline for Preparation of • The intending producer after MOU to prepare DPR through reputedProject Report. consultant and submit the same to Chief Executive, OREDA for detailed

scrutiny.

• Capital subsidy allowable, Financial Assistance of IREDA (if sought for),MNRE Subsidies and other such allowable financial & fiscal incentivesshall be considered by the Chief Executive, OREDA.

• Thereafter clearance by the State Technical Committee (STC) headed bySecretary, Science & Technical Deptt. will be processed

14 Clearances All the required clearances from State Government Agencies to be obtainedbefore submission of the DPR to STC.

15 Application Procedures • Eligible entrepreneurs, to apply to Chief Executive, OREDA in theprescribed format for obtaining Government approval.

• If Grid interface is required, approval of GRIDCO/ DISTCO will benecessary.

• If the applicant does not take effective step to implement the project within6 months from the date of obtaining possession of land the agreementshall be terminated.

• For Small, Mini and Micro hydel projects, Administrative Department willbe the Energy Department and the Science & Technology Department.

• Government of Orissa will handle the rest of the programmes.

16 Procedure for Setting up of • The Chief Executive (CEO), OREDA to make a list of all projects to thePower Plant Projects intending producers, along with pre feasibility report (PFR)

• CEO, OREDA to advertise, in the month of January every year, all thefeasibility reports, inviting letters of interest.

• First preference to be given to producers who wants to set up the projectsas Captive Power Plant, exclusively for their own use.

• After receipt of letters of interest, the same to be segregated in to CPPand IPP Groups.

• State Govt. to allocate project through MOU, on receipt of report from theCEO, OREDA.

• In case of more than one application for a single project, the same will beshort listed by the STC.

• In case there is no response for any particular project, the same will beassigned on a “first cum first serve” basis.

• State Govt. to allocate project based on pre-qualification evaluation.

• Producer to prepare DPR along with Power evacuation agreement (PEA)and submit to the CEO, OREDA and DISTCOS/ any lawful Authority forapproval.

• CEO, OREDA to process the DPR for placement before STC.

• STC to scrutinize and approve the DPR on receipt of the clearance forpower evacuation arrangements from GRIDCO/ DISTCOS/ any lawfulAuthority.

• Producer for Captive use to seek permission of OERC before start up theproject.


• IPP to take up the project on approval of tariff schedule for sale of powerby the Govt.

• DISTCOM / State Government may approve the tariff if the cost per kWh iswithin + 10% of the highest cost of energy purchased by the DISTCOduring the year from any source.

• If the cost is higher than the limit, specific approval of the State Govt.required.

• All commissioned projects to be reviewed for their fitness and powergeneration capabilities every 2 years by OREDA.

• In the event of project work not being started within a year of approval ofthe PPA, the MOU and PPA will automatically stand cancelled.

17 Nodal Agency OREDA as a single window for promotion and facilitation of all projects.


GOVERNMENT OF PUNJAB

NEW AND RENEWABLE SOURCE OF ENERGY (NRSE) POLICY, DATED 24TH NOVEMBER, 2006


1 Order No.10/106/2006-STE(1)5390 dated 24th Nov, 2006.

2 Title New and Renewable Source of Energy (NRSE) Policy- 2006)

3 Targets • To add generation capacity of 1000 MW by the year 2020 through RESources and bring the share to 10% of conventional power.

• To motivate all sectors of economy to ensure conservation of energy tothe extent of 20% by the year 2020.

4 Measures to be adopted • In case share of power generated through RE Sources is less than 10%,STU/ Licensees to purchase power from RE Projects out side the State inthe Northern region at same tariff as applicable in Punjab.

5 Thrust areas To promote investment through private / public sector participation in the followingareas:

• Small / Micro Hydro Projects: Untapped estimate potential of 200 MWto be tapped by the year 2012.

• Co-generation: Sugar, paper, fertilizer chemical, textile and otherindustries with estimated potential of 220 MW to be exploited by the year2012.·

• Power Generation from Biomass/ Agro Residue and Waste: Estimatedto be about 22.65 million tons for generating decentralized power of morethan 1500 MW to be exploited by the year 2020. Only one biomass powerproject to be allocated through competitive bidding route in Tehsil (Taluka)in the State to have sufficient command area·

• Power Generation from Urban, Municipal and Industrial Liquids/SolidWaste: To exploit about 5000 Metric Tons Municipal, urban, and industrialsolid waste, which can lead to power generation of 100 MW, through wasteenergy project.·

• Power Generation from Solar Energy: The state is endowed with vastpotential of solar energy estimated at 4.7 kWh/m2 of solar insolationlevels and the Governments keen to tap this resource by setting up solarenergy based power projects.·

• Wind Power: Self identified projects in the sector shall be promoted byallowing private developers to set up wind power projects on first comefirst served basis on the basis of wind data assessment carried out bythem.·

• Energy Conservation: Energy Conservation measures shall beimplemented and enforced in the State in accordance with the provisionsof Energy Conservation Act. 2001 by PEDA.

6 Incentives • If Government land is available, the required land for setting up RE projectsto be provided on nominal lease rent Rs.1/sq.meter/annum for a period of33 years subject to further renewal.

• If the land belongs to local bodies/ gram panchayat, the State wouldencourage them to provide the land for RE project.

• Agricultural land shall be allowed for setting up of RE project withoutconversion charges.

• Value Added Tax (VAT) shall be levied @ 4% on manufacturing and saleof NRSE device systems, and equipments /machinery required for REprojects.


• Octroi on energy generation and equipment/machinery for RE powerprojects exempted.

• PSEB to purchase power from RE projects with out any restriction.

• Private developer, at its own cost to provide the evacuation systemincluding transmission lines.

• For use of river/ canal water, cess @ one paise per unit of electricitygenerated will be charged for SHP Project developed by the privatedevelopers.

• For providing administrative support for obtaining clearances, financialand technical assistance etc., the facilitation service charges @ 0.1% ofthe project cost as per DPR will be charged by PEDA on all NRSEprojects.

• All project developers (private as well as Government) can seek assistanceof PEDA in terms of seeking carbon credit under CDM for NRSE projects.

The various physical and financial incentives available for setting up NRSEpower projects are detailed in Appendix-II (Refer Policy)

7 Facilities by Punjab StateElectricity Board

(i) Wheeling • 2% of energy fed to the grid

(ii) Sale of power

(a) Mini/ Micro Hydel • Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 3% project up to 2011-2012

(b) Bagasse/ Biomass co- • Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 3% generation projects up to 2011-2012

(c) Biomass power projects • Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5%up to 2011-2012

(d) Power generation from • Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5% urban, Municipal and up to 2011-2012 Industrial Liquid/ solid waste

(e) Power generation from • Rs.7.00 per unit (Base year 2006-07) with five annual escalation @ 5% Solar energy up to 2011-2012

(f) Wind Power projects • Rs.3.49 per unit (Base year 2006-07) with five annual escalation @ 5%up to 2011-2012

Note: At the end of above specified escalation periods, the tariff payable shallbe the last escalated tariff or the PSEB HT tariff applicable in that yearwhich ever is higher

(iii) Settlement of Bill • All transactions between PSEB/Licensees and the producer involvingwheeling or sale of power to be settled on monthly basis.

• PSEB/Licensees to pay interest on payment delayed beyond a month @State bank of India short term PLR rate plus 2%, for delayed amount foractual period of delay.

(iv) Banking • Allowed.

(v) Exemption from Electricity • ExemptedDuty

(vi) Letter of Credit (LC) • PSEB/licensee will provide facility of irrevocable and revolving, letter ofcredit issued by any nationalized bank

• Amount of L.C. shall be equal to the bill amount of one month on the basisof average of last three months.


8 Clearance for NRSE Projects • State government to provide the clearances in time bound manner througha single window clearance mechanism within a period of 60 days

The detailed procedure for according approvals/ clearances andcomposition of empowered committee- refer Appendix-I of policy

9 Allotment of Project • On the basis of financial and technical parameters contained in the tenderdocument, bids would be invited and evaluated by an expert technicalcommittee appointed by PEDA.

10 Nodal Agency • Punjab Energy Development Agency (PEDA) .

11 Amendments/ relaxation/ • Powers vested with the Governmentinterpretation of Provisionof the Policy

12 Applicability • Five years w.e.f. 8th December, 2006.


GOVERNMENT OF RAJASTHAN

POLICY FOR PROMOTING GENERATION THROUGH NON-CONVENTIONAL ENERGY SOURCES


1 Order Energy Deptt. letter no. F.20 (4) Energy/2004 dated 25.10.2004 and amendedvide letters of even nos. dated 10.3.2005, 16.7.05, 18.8.05, 24.2.06, 30-11-06,19-1-07, 27/29-3-2008, 15.5.2008, and 10-11-2008.

2 Title Policy For Promoting Generation Of Electricity through Non-Conventional EnergySources - 2004

3 Objective To promote Generation of power from non-conventional energy sources,

4 Nodal Agency Rajasthan Renewable Energy Corporation (RREC). It will also play the role offacilitator for:-

• Execution of Power Purchase Agreement (PPA) / Wheeling and BankingAgreement (WBA) with Rajasthan Vidyut Prasaran Nigam (RVPN) /Discoms

• Loans from IREDA/PFC/REC/Financial Institutions/Commercial Banks.

5 Sale of Power • Power Producers may use the power for captive consumption or for saleto consumers/licensees including Discoms.

• The cap on purchase of energy from power generated through NonConventional Energy Sources shall be in accordance with that specifiedby the Rajasthan Electricity Regulatory Commission.

• Energy to be offered to open access consumer/ Discoms/ CPPs withinthe State for fulfillment of RE Obligation as per RERC

• After fulfilling RE Obligation developers may sell surplus energy out sidethe State.

• The price of power to be sold by the Producer to consumers / licenseesother than Discoms to be determined by the mutual understanding /agreement between the seller and the purchaser.

• For the Discoms the price of such power will be as per RERC order 09-03-2007 & amendment 14-03-2007

• For wind farms commissioned after March 31, 2007 and for biomass powerplants commissioned after September 30, 2008, the tariff shall be inaccordance with that specified by RERC.

6 Grid Interfacing (A) Except in case of solar power not exceeding 220 KW the grid interfacingarrangements will be made by Developer/ RVPN/ Discom as under:-

• Pooling Station:

Interfacing arrangements from the points of generation to the poolingstation including the pooling station shall be developed andmaintained by the Power Producer as per the specifications andrequirements of the RVPN/ Discom, and the entire cost for this willbe borne by the Power Producer.

• Receiving Station

RVPN/Discom shall finalise the location in consultation with RERCof receiving station and electricity generated will be received atminimum 33 kV level.

• Power Producer to pay Rs. 2 lacs per MW to RVPN/ Discom, creationfor proper facility for receiving Power.

• Charges to be 30 days of allocation by RERC for wind projects


• Transmission from Pooling Station to Receiving Station:

To be developed by the Power Producer at his own cost.

• This will, however, be deemed to have been transferred to RVPN /Discom for O&M as soon as interconnection between pooling stationand receiving station is established.

Note: In case the length of the transmission system up to ReceivingStation is at a distance longer than that specified by RERC,compensation shall be provided to Developer as to be determinedby RERC.

• Transmission and Distribution Network Augmentation:

For augmentation of transmission/ distribution systems to evacuatethe power from receiving station, RVPN / Discom shall develop/augment the necessary transmission/ distribution network withinmutually agreed timeframe.

(B) RVPN/ DISCOM to grant inter-connection facility, wherever adequatepower evacuation capacity is available, within one month of intimation orCOD, whichever is later.

(C) Power Producer to install necessary current limiting devices such asThyristor in the generating equipment.

• Capacitors of sufficient rating to be provided in the Wind Farm toensure that the average power factor is maintained as perrequirements of State Load Despatch Centre, measured at meteringpoint of the Wind Farm.

(D) Power Producer shall comply with Grid Code including Load Despatchand System Operation Code, Metering Code, Protection Code, SafetyCode etc.

7 Wheeling • Except in case of power sold to Discoms, the Power Producer to paywheeling charges @ 10% of the energy billed into the grid inclusive ofT&D losses.

• In respect of third party sale and / or captive use for which PPAs aresigned after March 31, 2007, the transmission, wheeling and other chargesshall be as specified by RERC.

8 Banking • Allowed

• Discoms at the end of 31st December of every calendar year, to pay to theProducer for the energy billed into the grid but has remained un-utilisedby the Producer at the pooled rate for procurement of power by the Discomin the preceding financial year

• If at the end of the calendar year it is found that the Power Producers hasdrawn more electricity than that billed by him into the system, he shall beliable to pay the cost of the same at the HT tariff prevailing at the end ofthe proceeding financial year.

• In respect of third party sale and / or captive use for which PPAs aresigned after March 31, 2007, the banking of power generated shall be asspecified by RERC.

9 Power Purchase Agreement • Sale of electricity by Power Producer to Discoms to be governed by the(PPA) and PPA executed between the Discom and the Power Producer and witnessed

by RREC.

Wheeling & Banking • PPA for wind power will be for 20 years.Agreement (WBA) • For power Projects other than wind power PPA will be for 10 years.

• At the end of the period of PPA the new PPA can be executed at mutuallyagreed rates

• Power Producer to execute WBA with the Discom for banking.


• Wheeling agreement with RVPN to be executed separately if the Producerintends to use the system of RVPN for wheeling power

• PPAs & WBAs to be assigned, in parts, on one-time basis in each case,to other parties after completion of the project and its connectivity to thegrid, with the consent of RREC & RVPN / Discom(s) on payment of Rs.1.00 lac per application to RREC

10 Settlement of Accounts On monthly basis except banking arrangements which will be settled within onemonth of the closing of every calendar year.

11 Merit Order Dispatch Not applicable

12 Incentive by the State • Consumption of electricity generated by Power Producers for its captiveGovernment use or for sale to a nominated third party exempted from Electricity Duty

@ 50% for a period of 7 years from COD.

• Generation of electricity from RE Sources to be treated as eligible Industryunder the schemes administered by Industries Department and incentivesavailable to industrial units to be available to the Power Producers.

• A State Level Empowered Committee headed by Addl. Secretary(Infrastructure) to provide single window clearance

13 Land Acquisition • Government land required for RE projects is to be allotted to PowerProducer at concessional rates viz, 10% of DLC rates as detailed below:

(a) Site for wind power project to be chosen by the Developer afterascertaining the wind parameters.

(b) Land other than the Government land to be procured by the Producer/Developer at his own cost.

(c) While land may be allotted to the Developer / Producer for theproject, signing of lease agreement by the Collector shall only beafter deposit of the Security Money in RREC for at least 10% of theProject capacity for which the land was allotted.

• RREC to forward land allotment application for the identified Govt. land tothe concerned District Collector within a period of 7 days from the receiptof the application.

• The land application in case of wind farm can be forwarded only if thesame is for site for which wind parameters are certified by C-WET.

14 Registration of Projects • Power Producer to register the application with RREC in prescribedproforma along with the required project report, documents, attachmentsand the interfacing scheme etc.

• Power Producer to deposit an amount of Rs. 50,000/- per MW with RRECtowards processing fee, which shall be non-refundable along with theapplication.

• In case the applicant had already submitted an application for a projectunder Wind Policy 2003, along with processing fee, and re-apply for thesame project under the new NCES Policy 2004, the processing fee paidearlier for the same project may be adjusted in the total processing feedue under the NCES Policy 2004.

• For the projects registered from April 1, 2007 onwards the processing feeshall be Rs. 25,000/- per MW.

• Power Producer to select the site for establishing the power project andsubmit the application to RREC for allotment of Government land if any.

• Every application would be given a registration number by RREC.

• List of registered applications shall be displayed on the notice board ofRREC.


• In exceptional circumstances, where the wind pattern changes adverselyfor any particular location, RREC may permit re-location of a project to analternative site once during the life of the project, so long as the investorremains the same. For such change, no additional charges shall be leviedother than for the land so allotted.

• In case such relocation entails additional investment for evacuating thepower on the part of RVPN / Discom, the connectivity charges shall belevied as per actuals.

15 Approval of Power Project • RREC to forward the grid interfacing plan submitted by the applicant toRVPN/Discom for technical acceptance.

• RREC to issue in principal clearance for the project on verification offollowing:

(a) Plan/layout of the project to be strictly in accordance with standardguidelines of MNRE/C-WET.

(b) Suggested grid interfacing arrangement of the applicant is acceptedand approved by RVPN/Discom.

• Project proposal “in principle cleared” by RREC and put up before theState Level Empowered Committee (SLEC).

• Decision for single window clearance (approval of project) will be takenby the SLEC within one month.

• Power Producer to initiate activities on the identified / allotted land onlyafter approval of SLEC.

• If any Producer initiates activities on the identified or the allotted landwithout project approval, subject to regularization of land by the competentauthority, grid connectivity would be allowed to such project only afterpayment of an amount @ Rs. 5.00 lacs per MW as penalty amount byPower Producer to RREC.

• If this provision is violated second time by the Power Producer, no gridconnectivity would be permitted to such project.”

16 Security Deposit and it’s • Developer to deposit a refundable amount as security deposit with RREC,forfeiture towards completion of the project in the prescribed time frame, within 30

days of the approval of the project by SLEC in the case of solar powerprojects and Capacity allocation by RREC in the case of wind energyprojects

• In the case of biomass power projects. SECURITY DEPOSIT, as per item16A

(A) Wind Energy Projects:

(a) In Jaisalmer district : Rs. 10 lacs per MW

(b) In other districts : Rs. 5.0 lacs per MW

Provided that:

(i) Amount to be Rs. 5.0 lacs with effect from April 1, 2007.

(ii) For projects up to 25 MW, the security deposit shall be in the form ofcash, on which no interest shall be payable.

(iii) For projects exceeding 25 MW, the security deposit may be in theform of bank guarantee.

(iv) If the security amount is not deposited within the time specified, theapproval shall stand withdrawn and priority would be accorded tothe next applicant.

(v) For re- submission to SLEC, the applicant to re-register the case,along with the processing fee, within the next 30 days, failing whichthe land allotted shall stand cancelled.


(B) Biomass Energy Projects:

Rs. 1.0 lac per MW. - in the form of cash or bank guarantee.

(C) Solar Power Projects:

Rs. 5.0 lac per MW. - in the form of cash or bank guarantee.

TIMEFRAME FOR COMPLETION of

A. Wind Energy Projects: (from date of allocation of capacity byRREC)-

Capacity (MW) Period (Months)

Up to 25 6

26 - 50 12

51 - 75 16

76 - 100 20

101 & above 24

B. Biomass Energy Projects: (from date of project approval bySLEC)- 20 to 28 months

C. Solar Power Projects:

- As determined by SLEC.

EXTENSION OF TIME SCHEDULE

RREC may extend the time schedule and provide new schedule if:-

(a) Power Producer makes an application giving convincing reasonsfor delay along-with extension fee, at least 15 days before the expiryof the prescribed period

Extension Period Amount(After the date of scheduled (Rs. / MW)commissioning)

One-month 50,000

Two-months 1,00,000

Three-months 2,00,000

More than three months 5,00,000

(b) The reasons given by the Power Producer in the application arefound convincing.

(c) In the case of solar power projects, a request for extension in theoriginal time frame stipulated by SLEC for the completion of theproject shall be examined by a Committee and it’s recommendationwould be placed before the SLEC for appropriate decision in regardto extension of the time period.

FORFEITURE

(i) Security deposit to stand forfeited in event of not adhering to the prescribedtime schedule.

(ii) Allotment of land shall also stand cancelled if the Project is not completedwithin the time frame

(iii) Producer shall not be considered for allotment of land thereafter.

17 Special Concessions/ RESERVATION OF AREA FOR BIOMASS COLLECTION :Conditions For Biomass When a Biomass based power plant of 7.5 MW is being set-up at a duly approvedProjects site, no other Biomass power plant shall be allowed within a radial distance of

40 kM provided that;

(i) State Government shall have the right to review the Biomass availabilityand reduce the reservation area to not less than 30 kms radius, if it


would not affect the sustainability of existing plants. However, such reviewshall not beheld before 2011.

(ii) Projects cleared under Policy dated 11.3.99 and complying withconditions laid down vide amendment dated 28.2.03 shall continue toenjoy 50 Km. reservation facility.

(iii) Small capacity Biomass based Gasifiers being set-up under anyprogramme of the State Govt. / GOI, through RREC or otherwise, wouldbe allowed to be set-up within the reserved area defined as above.

(iv) If Producer desires to install lower/higher capacity plant or wants toenhance the capacity of the power plant above 7.5 MW, the reservationarea could be reduced/ extended by RREC to meet proportionate Biomassrequirement for the plant.

A. TIMEFRAME OF COMPLETION FOR BIO MASS PLANT (from date ofregistration)

(i) Deposit of Security amount (Rs. 1 lac / MW) - within 1 month

(ii) Finalization of land and power evacuation plan - within 4 months.

For non-compliance of above conditions, the registration shall standcancelled and the security deposit, if deposited, shall be refunded.

B. EXTENSION OF TIME SCHEDULE

On submission of application to RREC, along with convincing reasons, 15days prior to expiry of the time-limit, along with penalty amount :

- For extension up to 1 month - @ Rs. 0.50 lacs / MW

- For extension up to 2 months - @ Rs. 1.00 lacs / MW

- No further extension beyond this limit.

C. USE OF CONVENTIONAL FUEL

In the event of reduced biomass availability, Power Producer could bepermitted to use conventional fuel

(i) Up to 30%, computed on the basis of declared heat rate linked toP.L.F, plant of the aggregate capacity of 15 MW and above at aparticular location

(ii) up to 25%, on similar basis, for those below 15 MW.

D. AVAILABILITY OF WATER

• Producers allowed to use water for generation, wherever possible.

• The modifications(s) required, if any, in the existing canal systemto be done by the Irrigation Department at the cost of the PowerProducer.

• For use of ground water, specific approval from concerned authoritieshas to be taken.

18 General Conditions (Savings) • Power projects established / for which PPAs have been signed under thePolicies -1999, 2000 and 2003 to be governed as per the terms & conditionsunder the concerned policies provided the power projects getscommissioned before 31st March 2005..

• Renewal of terms & conditions, if any, will be guided by this Policy or anyother Policy prevalent at that time.

• For projects based on biomass the period of commissioning will be up to30th September, 2008.

• Wind power project approved by RERC for which land has been allottedand settings also approved by RREC before promulgation of this Policyand substantial investment (50% of the proposed capital investment) hasalready been made by Power Producer will be governed by Policy-2003.


(Clarification - The limit of 250 MW on PPAs to be signed by Discomsunder Policy-2003 shall be observed by the Committee while consideringsuch cases)

• A committee headed by Principle secretary (Energy) to determine whetherthe substantive investment has been made.

• Committee to consider only those cases where developer has submittedthe application within 10 days of Notification of the policy.

Govt. of Rajasthan, Energy Deptt. No. F.20(4)Energy/2004 dated 24 -2-2009 Clarification regarding Fulfillment of REObligation for Open Access as given below:

In continuation to the clarification issued by Energy Department vide No.20(4jEnergy-2004 dated 10.10.2008 regarding fulfillmentof RE obligation for open access by the power producers setting up power plants based on RE Sources in the State under NESPolicy 2004, following clarifications are hereby further issued:-

1. Free Electricity to the State- Since the Solar Power Producers would be utilizing vast areas of land in the State,they shall supply free power to the state as given below on the basis of actual generation :

Installed Capacity Quantum of free

(a) 0-50 MW capacity Nil

(b) 50 MW and 100 MW 1% actual generation

(c) 101 MW to 150 MW 2 % actual generation

(d) 151 MW to 200 MW 3 % actual generation

(e) 201 MW to 250 MW 4 % actual generation

(f) Above 250 MW 5 % actual generation

2. First Right of Refusal: The State Discoms would have the first right of refusal to 20% of the total energy generated.The quantum of power to be so purchased would have to meet the Renewable Energy obligations as may be prescribedby RERC at the relevant point of time.

3. Tariff : The tariff for power purchase by State Discoms would be as prescribed by RERC.

4. Open Access connectivity to the transmission system shall be given against the normal charges if spare capacity isavailable. In case spare capacity is not available the Power Producers shall be required to pay the cost of systemstrengthening/ augmentation as per provisions of Open Access Regulations.

5. As per policy, the solar power producer shall be required to draw dedicated transmission line to the feasible sub-stationas decided by RVPN.

6. In case the total power produced is sold to the Discoms within the State then the cost of the system strengthening/augmentation as given at (4) above will not be payable and

7. Open Access for solar power plants shall only be considered in such cases where the land has been procured by thesolar power producer at his own level and not in case of allotment of government land for the project.

8. In case of unforeseen circumstances, like cloudy days, if the generation from the solar power plant is less than thequantum of electricity supplied to the third party by the Discom under third party sale agreement, the power producerwill be liable to deposit to the Discom, charges for the excess power supplied, at the rate on which he sells power to thethird party or the highest rate at which the Discom has procured power in that period, whichever is higher.



POLICY FOR ELECTRICITY GENERATION FROM WIND ENERGY - 2003


1 Order Energy Deptt. letter No.F.20(3) Energy / 98/Pt.III dated 30.4.2003

2 Title Policy for Promotion of Electricity Generation from Wind, 2003

3 Objective To support wind power generation, up to 250 MW, with cap and attract investmentin the State.

4 Operative Period • Applicable to Wind Power Plants commissioned up to 31st March, 2009,unless superseded or modified by any other order.

• Policy supersedes the Policy for Promoting Generation of Power throughWind issued vide Government Order No. F.20(3)Energy/98 dated 4.2.2000.However it shall continue to be applicable to those Wind Power Projects,up to the cap of 100 MW for which Rajasthan Renewable EnergyCorporation (RREC) has given specific approval.

5 Eligible Producers • Wind Farm Developers (WFD), Wind Energy Generator (WEG)manufacturers, Government owned Companies, Private Companies, JointVenture Companies and Private investors.

• Eligible producer to obtain permission for installation of wind power plantfrom State Government.

6 Eligible Wind Farm • WFD or WEG manufacturer who has set up at least 7.5 MW wind generationcapacity in the country

• Manufacturer of WEGs having supplied, installed, commissioned windenergy generation capacity of at least 25 MW in India

• A company promoted by such entrepreneur and/or manufacturer.

• WEG’s installed are new machines .

• Minimum capacity of WEG’s proposed for installation to be 225 kW.

7 Sale of Power • WFD / Investor would be eligible for using the power produced for captiveconsumption or sale to a third party or to Rajasthan Vidyut Prasaran Nigam(RVPN) or any combination of the three options available.

• A PPA or Wheeling Agreement, or both, as the case may be, will be requiredto be entered into with RVPN /concerned Discom(s).

• In the case of power to be sold to RVPN/ DISCOMS, RVPN to pay a rateof Rs. 3.32 per unit for power supplied during 2003-04 which shall beincreased at a simple rate of 2% (of Rs. 3.32) every year on 1st April of theyear for a period of up to 10 years, i.e., up to 2012-13 with Base year2003-04.

• Thereafter, from 2013-14 and onwards a fixed rate of Rs. 3.92 per unitcharges to be paid by RVPN for a period up to the 20th year of the project.

• In case of sale of power to third party the Investor / Developer shall obtainlicense from RERC under Rajasthan Power Sector Reforms Act 1999.

• Tariff for such third party sale to be determined by RERC.

• Investors would be free to negotiate quantum of sale of power, if effectedto a third party, and bill and collect the same directly from such third party.

8 Wheeling • RVPN / Discoms to transmit Power on their grid and make it available tosuch producer for captive use or sale to a third party nominated by suchproducer within the State.


• Wheeling charges would of 10% of the energy fed into the grid.

• Third party if nominated to be consumer of DISCOM of category “LargeIndustrial Service”, as defined in Discom Tariff rules, unless the concernedDISCOM specifically relaxes this condition.

9 Banking of Power • Allowed in a calendar year for the period up to 31st December of the saidcalendar year.

• Banked energy, if not consumed within this period, to be treated to havebeen sold to RVPN at 60% of the prevailing energy charges of ‘LargeIndustrial Service tariff’ rate.

10 Power Purchase Agreement • RVPN to enter into a PPA for a period of 20 years from COD.(PPA) • All transactions between RVPN and the Eligible Producers to be settled

on monthly basis.

• RVPN / concerned DISCOM to sign the PPA / WBA within one month ofits presentation

11 Electricity Duty Exempted for its captive use or for sale to a nominated third party for a period offive years from COD.

12 Grid Interfacing, Metering • Developer to undertake and bear the cost of grid interfacing facilities plusmaintenance cost.

• RREC to finalize plan for the location of pooling station in consultationwith RVPN and respective DISCOM

• Developer to deposit Rs. two lacs per MW with RREC for developingsuch pooling station. This amount would be transferred by RREC toRVPN.

• RVPN/concerned Discom to undertake to augment sub-station capacityat 132/33 or 33/11 kV or higher levels, augmentation of transmission linesand all related works at its cost, to receive the power generated by EligibleProducer.

• Developer allowed to set up own Sub-station and transmission lines attheir cost as per pre-approved laid down specifications and prudent utilitypractices of RVPN.

• The facility so created would be deemed to have been transferred to RVPNby the developers/investor for operation and maintenance.

• Amount for development of pooling station shall not be charged from suchWind Farms.

• RVPN / concerned DISCOM to grant inter-connection facility, whereveradequate power evacuation capacity is available, within 15 days ofintimation or COD, whichever is later.

• Eligible Producer, at his cost, install, at the pooling station, two separatemeters, one for the import and another for export of power from/ to thegrid

• RVPN / Discom to seal the meters and metering boxes.

• In addition to the above one back up metering system shall also be providedat the Wind Farm.

• One meter for recording reactive power drawn from the Grid shall also beprovided.

• Eligible producer to install necessary current limiting devices such asThyristors in the generating equipment.

• Capacitors of sufficient rating to be provided in the Wind Farm to ensurethat the average power factor is maintained above 0.9, measured atmetering point of the wind farm.


• Eligible producer shall comply with Grid Code including Load Despatchand System Operation Code, Metering Code, Protection Code, SafetyCode etc. as applicable from time to time in the State of Rajasthan.

13 Process of Allotment • Applications for allotment of the Wind Project sites to be submitted in theprescribed Application Format to Rajasthan Renewable EnergyCorporation Limited.

• The Developer to deposit an amount of Rs. 25,000/- per MW along withhis application towards processing fee, which shall be non-refundable.·

• RREC / RVPN / Discom to provide clearances within a period of two monthsfrom the date of submission of application.

• Application/ PPA to be terminated for not ensuing to COD

14 Security Deposit • Developer to deposit with RREC a refundable amount of Rs. one lac perMW as security deposit towards completion of the project within thestipulated time.

• Amount to be forfeited in the event of failure to adhere to the stipulatedschedule of COD.

15 Land Acquisition • The Developer to select the site for establishing the Wind Farm, afterascertaining the wind parameters in the wind mast areas mentioned inthe Policy.

• RREC to take all necessary actions for allotting sites to developers, inaccordance with procedure approved by Govt. of Rajasthan.

• State Government to provide land for the proposed wind farm at 10% of‘District Level Committee (DLC) rates on first cum first served basis.

• Land allotment to be treated as cancelled if the project is notcommissioned as per committed schedule, and it is the sole discretion ofRREC.

16 Clearances RREC shall facilitate clearances for the project at the State and Central levelsand shall also facilitate PPA with RVPN/concerned DISCOM and grant of loansby IREDA/ PFC/ REC and other term loan Agencies/Commercial Banks.



POLICY FOR PROMOTING GENERATION OF ELECTRICITY FROM BIOMASS, 2010


1 Order Energy Deptt. Notification No. F 20 (10) Energy/09 dated 26.02.2010

2 Title Policy for Promoting Generation of Electricity from Biomass, 2010

3 Objective To promote generation of electricity from biomas

4 Enforcement From 26.02.2010 till superseded or modified.

5 Use of Power for Captive • Power Producer to use power for captive consumption or for sale to thirdPurposes/ Sale party/ licensee including Discoms

• Minimum Renewable Power Purchase Obligation of State Discoms topurchase energy generated from biomass based power plant to be as perthe Order of Rajasthan Electricity Regulatory Commission (RERC).

6 Grid Interfacing • Grid interfacing arrangements to be made by power producers / RVPN/Discom as under:

(i) Generating Plant sub To be developed and maintained by Power producer as per the grid code andStation. entire cost to be borne by developer.

(ii) Receiving Station Producer to terminate their 33 kV (minimum voltage level) power evacuationfeeder to nearby RVPN's 132/33 kV or 220/132/33 kV GSS or any other RVPNS'sGSS in consultation with RREC.

(iii) Grid Connectivity • Producer to pay grid connectivity charges to RVPN/ Discom as finalizedby RERC within 3 months of PPA.

• Charges to include cost of complete line bay and its interconnection withexisting electrical system at RVPN GSS.

(iv) Transmission from Gene- • Evacuation system beyond Generating Plant Sub Station till the nearestrating Plant Sub Station RPVN's 220/132/33 kV or 132/33 kV grid sub station to be developed byto Receiving Station Producer as per RERC regulation dated 23.1.2009 and amendments.

• If line bay and grid connectivity has been made by RVPN at a particularvoltage (33 kV) and power producer on later date wants to supply thepower on higher voltage, then on feasibility and consent of RVPN, this willbe done by RVPN as a deposit work on behalf of the Producer.

• If Power Producer first connects his feeder to Discm's sub station andlater on wants to connect his feeder to RVPN's sub station, then additionalline work to be done by Producer and the addition of line bay in RVPN substation to be done by RVPN as deposit work on behalf of Producer.

(v) Transmission & To evacuate power from receiving station, RVPN/ Discom to develop / augmentDistribution Net work the necessary transmission / distribution net work within mutually agreed timeAugmentation frame.

• RVPN/ DISCOM to provide interconnection facility one month before CODas intimated by the Power Producer.

• Producer to install necessary current limiting devices such as Thyristor inthe generating equipment, if required.

• Capacitor of sufficient rating to be provided to ensure that average powerfactor is maintained as per the requirement of State Load Despatch Centre,measured at metering point.

• Power producer to comply with Grid Code including Load Despatch andSystem Operation Code, Metering Code, Protection Code etc. as applicablein the State of Rajasthan.


7 Power Purchase Agreement • Sale of electricity to Discom to be governed by the PPA executed between(PPA) concerned Discom and the Power Producer as per the order of RERC.

• For third party sale or for captive use within the State, Producer to executea wheeling Agreement with Discom.

• Wheeling Agreement with RVPN to be executed separately if the Producerintends to use RVPN system for wheeling of power.

• Draft PPA to be finalized by RREC in consultation with RVPN/ Discom.

8 Settlement of Accounts All transactions between the Producer and Discom/ RVPN regarding price ofpower and wheeling charges to be settled on monthly basis.

9 Incentive by the StateGovernment

9.1 Exemption from Electricity Consumption of power for Captive use to be exempted from Electricity Duty @Duty 50% for a period of 7 years from COD.

9.2 Grant of Incentives available To be treated as eligible industry under the scheme administered by Industriesto Industries Department and incentives available to industrial units under such scheme to

be available to the Producer.

9.3 Availability of water for • Allowed to use water from Water Resource Department (WRD) for powerPower Generation generation. In case use of ground water, permission to be obtained from

Ground Water Department/ WRD. Producer to intimate estimated waterrequirement to RREC along with source of water.

• Modification(s) if any, in the existing canal system to be done by WRD atthe cost of power producer.

• Ground water department to accord similar status to Biomass power Plantusing "air cooled technology" as granted to drinking water scheme whilegranting NOC for drilling bore well/ tube well for fulfilling water requirementof the projects

9.4 Land on Concessional Rate Government land to be allotted to Producer at concessional rate of 10% ofDistrict Level Committee (DLC) rates .

10 RREC to be Nodal Agency Rajasthan Renewal Energy Corporation (RREC) to play the role of facilitatorfor:

(i) Execution of PPA/WBA with RVPN/ Discoms;

(ii) Loans from IREDA/PFC/REC/Financial Institutions/ Commercial Banks;

(iii) Allotment of revenue land;

(iv) Water allocation from concerned department;

(v) Approval of power evacuation plan and allocation of bays etc.

(vi) Arranging other statutory clearances/ approvals;

(vii) Various clearances related to energy plantation for use as supplementaryfuel in Biomass Power Plant.

11 Registration of Power Project • Biomass project up to 20 MW capacity to be eligible.

• Provided that project of less than 5 MW capacity can be set up within thereserved area of any plant capacity of 5 MW and more with the permissionof RREC. Further no area to be kept reserved for projects less than 5MW.

• Producer to submit application with RREC in the prescribed Performa(Form- A) appended with policy as Appendix 'F' along with the requireddocuments as applicable.

1. Certified copy of the memorandum & Article of Association of theCompany.

2. Certified copy of the registration certificate.


3. Certified copy of the partnership deed.

4. Certified copy of the Authority conferring powers on the person(s)who are competent to execute the MOU/ the agreement with GoR/RREC/ RVPN/ DISCOM.

5. Biomass Assessment Report.

6. Pre Feasibility Report (PFR)/ Detailed Project Report (DPR).

7. Processing fee in the form of DD payable to RREC at Jaipur.

8. Annual report of the Company for last three years.

• Producer to deposit Rs.25000/- per MW along with application with RRECtowards processing fee, which is not refundable. Service taxes and cessetc payable extra as applicable.

• RREC to issue acceptance to the project within one month from the dateof receipt of complete application.

• If Power producer submit an application for a specific area with out PFR/DPR and Biomass assessment report, an application registration number(ARN) will be given by RREC and area will be booked for that powerproducer.

• On submission of DPR and Biomass assessment report within 6 monthsfrom the date of registration of application, project will be registered withRREC.

• If DPR and Biomass Assessment Report are not submitted within thestipulated period of 6 months the application shall be deemed to becancelled and that specific reserved area to be free for any other powerproducer.

• If Producer wants to change the location of power plant due to insufficientavailability of biomass, the application for change to be given within 3months from the date of submission of application (ARN). RREC to reservenew available area within 15 days, but DPR and Biomass assessmentreport for new site have to be submitted within 8 months of the date ofallotment of ARN, otherwise application would deemed to be cancelled.

• Biomass Power plants commissioned under earlier policies of StateGovernment shall continue to be governed by the relevant policies inoperation at the time of commissioning of the project.

• Plant for captive use with out using State grid has to register the projectwith RREC and to take approval of the State Government for setting upthe project.

12 Approval of Power Projects • Site for biomass power plant to be chosen by the Producer afterascertaining availability of biomass, required water and power evacuationfacilities etc.

• RREC to forward land allotment application, grid interfacing plan, waterrequirement etc to the concerned authorities.

• Private land to be procured by the Producer directly from the private parties.

• Project meeting the following requirement to be considered as "in principlecleared" project.

(i) For Government land, the land allotment is approved by the RevenueDepartment.

(ii) For private land, the land has been procured by Power producer &land conversion done by the competent authority.

(iii) Grid interfacing arrangement approved by RVPN/Discom.

(iv) Allocation of water is approved by the concerned Department.


• The "in principle cleared" project proposals meeting the aboverequirements to be put up for single window clearance before the StateLevel Empowered Committee (SLEC) headed by Chief Secretary.

13 Reservation of Area for No other Biomass Power Projects to be permitted within the reserved area ofBiomass Power Plants existing/ approved/ earlier registered projects as specified under:

Sl. No. Capacity in MW Area Reserved (Radius in km)

1 5 60

2 More than 5 and up to 7.5 75

3 More than 7.5 and up to 10 80

4 More than 10 and up to 12.5 85

5 More than 12.5 and up to 15 90

6 More than 15 and up to 20 100

Provided that:

(a) State Government shall have the right to review the biomass availabilityand accordingly reserve the right to change the reservation area.

(b) The reservation of area for plants commissioned/ approved and registeredunder earlier policies to be governed by the provisions as specified aboveprovided that such reservation of already commissioned / approved andregistered power plants does not overlap with the reserved area of anyother power plants commissioned/ approved and registered under anypolicy. In the event of overlapping of reserved areas, the area reservationshall continue to be governed by the respective policy under which thesame is registered.

14 Fuel for Biomass Power Plant • Biomass, i.e., forestry based & agro based industrial residues, energyplantation, forestry and agro-residues to be utilized as fuel for biomasspower project.

• Biomass produced within Rajasthan such as Wheat husk, Millet husk,Barley husk, Jwar husk etc. not allowed to be used as fuel.

• As per RERC order dated 17.08.2009, Biomass producers to be allowedto use fossil fuel (such as coal, lignite, natural gas, municipal waste) up to15% during the lean period in some years.

15 Security Deposit • Producers to deposit security amount @ Rs.1 lakh/MW within 2 monthsfrom the date of issue of PRN.

• Security amount to be refunded to the power producer within 2 months ofcommissioning of the project after recovery of penalty if any.

16 Time frame for completion of • Deposit of security amount (Rs.1 lakh/ MW) - within 2 months from thedifferent activities, subject to date of issue of PRN.force majeure condition • Finalization of land, power evacuation plan and availability of water - within

4 months from the date of issue of PRN

• For non compliance of above condition, the extension in time limit to begranted on submission of application to RERC along with extension feeas follows:

- For extension up to 2 months - @ Rs.15000/- per MW

- For extension of more than 2 months up to 4 months @ Rs.25000/-per MW

- No further extension beyond this limit and- project to be treated ascancelled and security deposit to be refunded by RREC within 15days of expiry of time limit


• Producer to commission the project within 24 months from the date ofapproval of the project. However extension in time schedule to be grantedby SLEC on case to case basis after depositing penalty amount as under:

(a) For delay up to 3 months Rs.25,000/- per MW

(b) For delay more than 3 months Rs.50,000/- per MWbut up to 6 months

(c) For delay more than 6 months Rs.75,000/- per MWbut up to 9 months

(d) For delay more than 9 months Rs.1,00,000/- per MW

• Power Producer to furnish monthly progress/status report of project fromthe date of approval of the project. Non compliance leads to forfeiting ofsecurity money and cancellation of project approval.

• Copy of work order along with cost, delivery schedule of supplies, civilworks execution and erection & commissioning schedule to be suppliedby the producer within 3 months of SLEC approval.

• Financial closure to be completed within 4 months from the SLEC approval

• Incentives for early completion as per RERC tariff order.

• After completion of the project and before commissioning, producer tofurnish the complete up dated project report. Representatives of RREC tobe present during commissioning of the project and commissioning reportto be issued by RREC.

• Obligation of the Power Producer to be excused for the period of forcemajeure.

17 Price of Power and Other • Price of power to be sold by the power producer to consumer/ licenseeCharges other than Discoms to be determined by the mutual understanding/

agreement between seller and purchaser.

• Price of power to be sold to Discoms and other charges/ conditions to bespecified by the Commission. The feed in tariff and other charges formustard husk based project for F.Y. 2009-10 & 2010-11 to be as perAppendix-A appended with the policy.

• Power producer intending to set up biomass power project with nonmustard biomass including Prosopis-Juliflora as a primary fuel source, toseek separate tariff determination by the Commission.

18 Promotion of Development Categories of land available for development of Prosopis- Juliflora/ otherof Prosopis- Juliflora/other Energy Plantation:Energy Plantation on Govt. 1. Degraded forest land through JFM committee.land for use as supplementary 2. Govt. waste land/barren land/ saline land, Panchayat waste/barren land/fuel in Biomass Power Plants saline land through concerned Gram-Panchayat.

Development of Prosopis- Juliflora/ other Energy Plantation on private land:

Developer may develop Prosopis- Juliflora/ other Energy Plantation on privateKhatidari land to be obtained on lease basis for 30 years or purchase landwhich is barren and unutilized for use as supplementary fuel for generation ofelectricity from biomass power plant in excess of ceiling limit prescribed in theCeiling Act, 1973.

18.1 Eligibility Criteria Facility available to Power plant who intends to supply 100% to State Discomsand those Power plants which are commissioned under earlier policies of theState Govt. and are supplying 100% power to State Discoms.

18.2 Identification of suitable land 1. Eligible producer to identify suitable land for development of Prosopis-Juliflora/ other Energy Plantation within the reserved area of power plantregistered with RREC after approval of the project.

2. Maximum 500 Hectare/ MW land in all categories to be permissible fordevelopment of Prosopis- Juliflora/ other Energy Plantation.


18.3 Application for permission for 1. Eligible producer to apply to RREC for identified land for development ofdevelopment of Prosopis- Prosopis- Juliflora/ other Energy Plantation in the prescribed formatJuliflora/ other Energy Appendix-G of the policyPlantation on the identified 2. For non forest land producer to furnish resolution of the concerned Gramland Panchayat in the prescribed format Appendix-B of the policy

3. For degraded forest land producer to furnish resolution of the concernedJFM committee in the prescribed format Appendix-C of the policy

18.4 District Level Empowered A committee under the Chairmanship of District Collector and members ofCommittee (DLEC) concerned departments to be constituted.

18.5 Grant of Permission • Land to be made available to the Concerned Gram Panchayat/ JFMcommittee for a period of 20 years and can be extended by DLEC for aperiod of another 10 years

• After approval of DLEC, a tripartite agreement between concerned GramPanchayat, Zilla Parishad (CEO) and Power Producer to be executed withrespect to the identified land in the format at Appendix-D of Policy.

• For degraded forest land a tripartite agreement to be executed betweenJFM committee, Forest department and Power Producer in the format atAppendix-E of Policy.

• The produce of approved land to be made available to Biomass PowerProducer by the Gram Panchayat /JFM committee on the price as perterms and condition of the agreement .

18.6 Determination of sale price 1. Price of biomass produced from Prosopis- Juliflora/ other EnergyPlantationto be determined by DLEC for every financial year on the basis of fuelcost prescribed by RERC

2. Responsibility of cutting uprooting and transporting of biomass producefrom plantation site to the plant site rest with power producer. 40% of thefuel cost prescribed by RERC to be taken as cost towards cuttinguprooting and transportation on lump sum basis.

3. Producer to establish weighing facility at the plant site under the directionof DLEC.

4. Producer to make the annual payment to Gram Panchayat /JFM committeeas per the price determined at clause 2 above in four equal quarterlyinstallments as per schedule given in the policy.

18.7 One time Uprooting/ Prosopis- Juliflora grown on degraded forest land which is identified by forestharvesting of Prosopis- department for one time uprooting/ harvesting falling within the reserved area ofJuliflora from Degraded Biomass Power Plant to be made available to the plant on priority.Forest Land

18.8 One time Uprooting/ Prosopis- Juliflora grown on Government/ Panchyat land which is identified byharvesting of Prosopis- Gram Panchyat for one time uprooting/ harvesting falling within the reservedJuliflora from Government/ area of Biomass Power Plant to be made available to the plant on priority.Panchayat Land

18.9 Withdrawal of permission for If Power Producer fail to install/ commission the power plant, the permissiondevelopment of Prosopis- given for development of Prosopis- Juliflora/ other Energy Plantation on theJuliflora/ other Energy identified land and all the grants allowed above shall stand cancelled.Plantation

19 EA-2003/ CERC/ RERC Not withstanding any thing contained in this policy the provision of the ElectricityRegulation to prevail Act-2003 and the applicable CERC / RERC Regulations/ Orders issued to prevail

for the purpose of implementation of this policy.

by DLEC


TAMIL NADU ENERGY DEVELOPMENT AGENCY

WIND ENERGY


1 Potential in Tamil Nadu • Tentative Gross potential - 5500 MW

• Harnessed up to 30.10.2008 - 4101 MW

2 Technology for Harnessing • Wind Electric Generator for power generation· Wind mills for waterWind Energy pumping

• Small wind power generator (Small Aero Generators)

3 Incentives offered for investors

(a) MNRE, Govt. of India • Accelerated depreciation on wind electric generator up to 80% for incometax calculations subject to a minimum utilization for 6 months in the yearin which deduction is claimed.

• Import of wind electric generator permitted under Open General License.Custom duty concessions on wind electric generators and certain essentialspares.

• Tax holiday allowed for 10 years in respect of profits/ gains from the privatewind electric generators

(b) Govt. of Tamil Nadu • TNEB to buy surplus energy at the rate of Rs.2.75 per unit from theexisting wind mills commissioned before 15.5.2006 from the date ofrenegotiation of existing agreement

• Rs.2.90 per unit from the wind mill commissioned after 15.5.2006 as perthe new tariff order of May 2006 by Tamil Nadu Electricity RegulatoryCommission.

• Rates have come in to effect as per TNEB order dt.14.9.07

• Confessional wheeling charges levied at 5% for captive use of powerunder which industries can draw power produced any where in the stateat the point of consumption

• Banking facility allowed subject to 5% charges for using power any timeof the year up to 31st March of the financial year

4 Why Tamil Nadu is a favourable • Attractive wheeling and banking facilities on charges of 5% each.Destination for Wind Power? • Favorable terrain in potential locations with easy accessibility

• Higher PLF of 30% and therefore higher power generation per MW

• Reasonable power tariff and regular payment by TNEB

• Adequate infrastructure for power evacuation including permission forinvestors to put up their own substations

5 Service Offered by • Preparation of project report for availing loan etc.Manufacturers / Suppliers • Selection of suitable sites, purchase and registration of land

• Co-ordination and follow up with Govt. and other Statutory Agencies fornecessary clearances

• Assembly, erection and commissioning

• Operation & maintenance services under AMC

6 Small aero Generators It is a stand alone type generator which can be used to produce electricity for(Mini-wind Mills) captive purpose. It can be installed at places where wind speed is more than

15 kmph. 41 sites identified.

(a) Economics (Tentative) • Cost of the system – Rs.2.50 – 3.00 lakhs/ kW.

• Saves around 2500 kWh per kW per annum depending on wind speedand duration


(b) Eligible categories of • Community users such as street lighting

• Direct use of Central and state Govt. agencies

• Individuals, Industrial users

• R&D and Academic Institutions

7 Procedure for ObtainingApproval and Technicalrequirement to be complied with

(i) For Registration 3 Sets of application to be submitted to CE/NCES office (As per details given inthe order)

(ii) Payment at the time As per details given in the orderof registration

8 Metering Arrangement Electronic trivector meter with TOD provision to be provided.

9 Energy Purchase Individual Energy Purchase Agreement shall be executed with TNEB for purchaseAgreement (EPA) of power by TNEB. EPA to be for a period of 15 years or useful life of the plant

which ever is less.

10 Power Evacuation Facilities • Wind electric generator are interfaced at 11 kV, 22 kV, 33 kV leveldepending upon the voltage level of the net work available in the area.

• Developers to carry out the above work with material specified by TNEBafter paying 11% charges on DCW basis.

• Power to be dispatched to the load centre by means of 110 kV and 230 kVlines.

beneficiaries


GOVERNMENT OF TRIPURA

DRAFT POLICY FOR PROMOTION OF GENERATION THROUGH NEW & RENEWABLE ENERGY SOURCES

Sl. Description Summary

No.

1 Title Draft Policy For Promoting Generation of Electricity Through New & RenewableEnergy Sources

2 Objective To promote generation of Grid quality Power through New & Renewable EnergySources.

3 Operative Period From the date of notification in the official gazette until superseded or modified.

4 Eligible Producers • All Power producers generating 10 kW to 25 MW of Grid-grade electricityfrom RE Sources

• RE producers in the joint sector, formed by Government agencies & theproducers.

• Power producers generating electricity for captive consumption

• Companies, Co-operative, partnerships, individuals, charitable societies,Non-Govt. organizations.

5 Selection Criteria • Financial Criteria: Average annual financial turnover of the Producer onEstablishment, Operation & maintenance for last three consecutivefinancial years to be at least 50% of the Estimated Project cost.

• Technical Criteria: Producer to have

(i) Collaboration with proven technology supplier of concerned powerprojects

(ii) During last 10 years, experience of developing / successfulcommissioning of two similar projects costing not less than theamount equal to 40% of the estimated cost of the proposed project.

Or

One similar project costing not less than the amount equal to 60%of the estimated cost of the proposed project.

6 Land Acquisition • Government Land: Land lease, as per existing Government rules andregulations, subject to its availability.

• Private Land: Non-Agricultural Conversion of land allowed , if Private/Agricultural land is purchased by the eligible producers

• Forest Land: To be considered by the State Forest Department under theexisting provisions of Forest Conservation Act.

7 Selection & Process of • Tripura Renewable Energy Development Agency (TREDA), the State NodalAllotment Agency, invite offers for suitable sites/projects for development in private

sector.

• Project Approval Committee to scrutinize the offers and submit to theGovernment with recommendations/comments.

• State Government of Tripura to give final decision on the selection/ awardof the projects .Decision of the Government to be final.

• Producers may also, select suitable sites/projects and submit proposalsto the Agency in specified format available with the Agency.

• Decision on selection/award of the project to be communicated to theconcerned producers normally within 3 months from the date of receipt ofthe proposal but, in no case the period to exceed 6 months.


• Agency/ Department and the producer to enter into necessary agreementwithin one month of approval/award of the project.

8 Plant & Machinery • Plant and machinery of latest design and high efficiency to be preferredfor installation.

• Protective / safety devices as approved by the Department in the gridcode to be incorporated in the systems by the producers.

• Developer to obtain the clearance certificate from the State ElectricalInspectorate before commissioning.

9 Power Purchase • Department and eligible producers to enter into a PPA for a minimumAgreement (PPA) period of 10 years.

• However, if any eligible producer intends to enter into PPA for shorterperiod, Department to consider such proposal on merit .

10 Grid Interfacing • Interfacing including transformers, panels, kiosk, protection, metering, hightension lines etc as required from the point of generation to the nearesthigh tension lines, as well as their maintenance to be undertaken by theproducer as per the specifications and requirements of the PowerDepartment / Tripura State Electricity Company Limited (TSECL), andproducers to bear the entire cost

• Alternatively, these works and their maintenance could be undertaken bythe Department at charges to be decided by the Department / TSECL andthe Producer on mutual agreement.

• Advance intimation to Department / TSECL with the time schedule to befurnished by the eligible producer.

• Department to undertake augmentation of the sub-station capacity at 33/11 kV or higher levels at its cost to receive the power generated.

• Power Department, Government of Tripura / TSECL to undertake, at itscost, augmentation of transmission lines, if required.

• Eligible producer at his cost to install the line equipment as required forgrid connectivity and install meters at his end to measure the outflow andinflow of energy as per the prevailing Rules and Regulations of theDepartment.

• In case of decentralized generation of power for local consumption,Department /TSECL to undertake, at its cost, construction of required localtransmission and distribution lines, if the same do not exist in the locality.

• Department/TSECL to be the owner of the T & D lines constructed at itscost and the producer to pay the wheeling charges to the Department/TSECL for using such T & D lines.

• Producer to ensure the "Grid Quality" of power delivered.

• In the event of technical problem for synchronizing with grid, energyproducer to distribute energy locally as stand alone source, as authorizedby Department.

• Producer to comply with grid code including load despatch & systemoperation code, metering code, protection code, safety code etc. asapplicable from time to time in the state of Tripura.

11 Wheeling Charges • Department to transmit on its grid the power generated by producer andmake it available to him for captive use or to a third party nominated byproducer for sale within the State, at a uniform wheeling charge as decidedmutually by the concerned authorities or @ 2% of the energy supplied tothe grid.

• However, CERC/TERC regulations, if any in force, will be the guidingfactor in deciding such wheeling charges.


12 Tariff • It will be compulsory for the Department / TSECL to purchase electricityoffered by the producers at a Price fixed by Commission/TERC, aspreferential tariff as per provisions of I. E. Act 2003, with no restriction ontime or quantum of electricity supplied for sale.

• Thereafter the rate of increase of tariff every year to be mutually settledbetween Department / TSECL and the producer.

• However, at any point of time, the TERC's Regulation on RenewablePurchase obligation and compliance to be a guideline and decision ofCommission / TERC to be final.

• Producer with concurrence of the Department may sell electricity generatedto a third party within and outside the State, at a rate to be settled as perregulations of the TERC.

• However, if the third party is a consumer of Power Department and needssupport of the Department's system in case of outage of power from thepower station of the producer, the third party will have to pay minimumcharges as per Schedule of Tariff of the Department in force.

13 Use of Conventional Fuel • Use of conventional fuel in the process of generation of electricity to beallowed for Biomass based projects in the event of reduced biomassavailability

• Use of conventional fuel to be restricted to 30% on the basis of the criteriaapplicable for an efficient Duel fuel Biomass based power plants asfinalized by the Department

14 Banking • State Electricity Corporation or the Agency or the Department, to permitelectricity generated to be banked for a period up to one financial year.

• If the banked energy is not utilized by the producer within one month ofthe end of the concerned financial year, the same will be treated aspurchased by the State Electricity Corporation or the Agency or theDepartment, as the case may be and will be settled at the rate specified inthe Power Purchase Agreement.

15 Security Deposit • Producer, within one month upon approval of the project, to deposit withthe Department, an amount equal to 2.5% of the estimated cost of theproject as security deposit towards completion of the project within theprescribed time frame.

• Amount to be released on successful commissioning of the project withinthe time frame.

• Deposit may be in the form of bank guarantee on any Nationalized Bank.

16 Transactions Settlement All transactions between the Department and the eligible producer involvingwheeling or sale of power to be settled on a monthly basis.

17 Exemption from Demand Cut A reduction in contract demand to the extent of 30% of installed capacity of thepower plants to be permitted by the Department, in case power plant is notutilizing Department's Grid for supply of power to the consumer.

18 Exemption from Electricity Exempted for its captive use or upon sale to a nominated third party.

Duty

19 Incentives • Grant of incentives available to Industries: Eligible producers to be treatedan eligible Industry and similar incentives to be available to them.

• Infrastructural facilities such as approach road, water supply, power duringconstruction period, etc. to be provided on the lines of provisions for suchfacilities to other industrial units if located within Industrial Areas / estates/ Growth Centre / Parks.

• Incentives provided by Central Government : Action to be taken as perexisting framework for processing of applications received for various


incentives under "North East Industrial and Incentive Promotion Policy(NEIIP), 2007.

• Sales Tax Exemption: - Renewable Energy equipment and materialsshall be exempted from State sales tax / VAT or other state levies oralternately, sales tax/VAT paid by the producer on Renewable energyequipments and materials to be suitably reimbursed to the producer.

• Free supply of solid waste at site : Concerned Municipal/ urban localbodies to provide garbage at the project site free of cost for urban, Municipal(Solid/Liquid) & industrial waste based power projects.

• Alternatively, the producers will be allowed to collect the garbage at itsown & the concerned Municipal / Urban local body will pay charges to theproducers on mutually agreed terms & conditions.

20 Facilitation by The Agency • Clearances for the project at the State and Central levels.

• Grant of loans to such projects by Indian Renewable Energy DevelopmentAgency (IREDA) and subsidies by the Ministry of New and RenewableEnergy (MNRE), Government of India.

21 Availability of Water for • Producers to be allowed to use water for project construction and for powerPower Generation generation, wherever possible.

• Cost of modification(s) required, if any, in the existing canal system to bedone by the Minor Irrigation Department (MID) or Agriculture Department,at the cost of the producer.

• MID or the Department entrusted with minor irrigation not to charge royaltyfor use of such water for initial period of 7 years.

• In case of mini hydel, the royalties of forest items for construction ofreservoirs / dams / Power House / fore-bay / penstocks etc. to be exempted.

22 Time Frame • Sanctioned projects to be completed and commissioned within a periodof 12 to 18 months, from the date of issue of formal sanction/approval.

• If the producer fails to maintain this timeframe without sufficient andappropriate reasons, the approval/sanction to be cancelled and all facilitiesextended to the eligible producer to be withdrawn.

• Security Deposit to be forfeited.

23 Sharing of CDM Benefit CDM benefits between Developer and Beneficiaries will be as :

• 100% of gross process to be retained by the project developer in the firstyear after the date of commercial operation of the generating station.

• In the second year, the share of the beneficiaries to be 10 % which shallbe progressively increased by 10% every year till it reaches 50%,

• There after the proceeds shall be shared in equal proportion, by thegenerating company and the beneficiary.

24 Monitoring Committee A State Level Monitoring Committee headed by the Chief Secretary of the stateand the Principal Chief Conservator of Forests to monitor the progress ofgeneration of electricity, undertake review of the policy, if required, and makesrecommendations to the State Government accordingly.

25 Quality Control • To be ensured by TREDA.

• For issues relating to grid connectivity & distribution etc., Department tobe ensure the delivery of quality power to consumers.


UTTARAKHAND POLICY FOR RENEWABLE ENERGY SOURCES WITHPRIVATE SECTOR AND COMMUNITY PARTICIPATION

DATED 29 JANUARY 2008


1 Order No.263/I(2)/2008-04(8)-96/2001 29th dated Jan, 2008

2 Title Policy for Promoting Generation of Electricity through Renewable Energy Sourceswith Private Sector & Community Participation

3 Potential Proposed to • Hydro Electric Power – 600 MWbe Harnessed by 2020 • Co-generation – 220 MW

• Biomass/Agro Residue and Waste – 300 MW

• Solar Power Projects – To be setup

• Wind Power – To Assess and Exploit the available Potential

• Urban, Municipal and Industrial Liquid/Solid Waste – Few Projects

• Geothermal Power – To exploit the available potential

4 Applicability From the date of Notification in the official gazette of Government of Uttarakhand

5 Energy Conservation Energy auditing to be made mandatory for industrial units where load exceeds25 kW

6 Incentives

(i) Sale of Electricity • UPCL to have first right of purchase of electricity

• UERC to determine price of electricity

• Government of Uttarakhand to provide guarantee for payments to be madeby UPCL for purchase

(ii) Wheeling • UPCL/PTCUL to transmit the power generated through its grid for captiveuse or third party sale within/outside the state

• Wheeling charges applicable and to be announced in advance

(iii) Banking Allowed at mutually agreed terms

(iv) Evacuation of Energy T&D lines from generation site to be provided by UPCL/PTCUL

(v) Power from Municipal Government land, if available to be provided for the project on nominal leaseSolid Waste rent of Rs. 1/Sqm for 33 years

6 Single Window Clearance High level empowered committee headed by Chief Secretary constituted foraccord of approvals/clearances through a single window mechanism

7 Classification of Projects

(A) Hydro Projects • Micro - up to 100 kW

• Mini - above 100 kW and up to 5 MW

• Small – above 5 MW and up to 25 MW

(i) Self Identified Projects Developers to identify projects, prepare DPR and ask for allotment

(ii) State Identified States/its sponsored agencies to identify projects, prepare DPR and allot theProjects projects

(iii) Allotment of HydroProjects - SelfIdentified Projects

Eligibility Criteria

(a) Micro Projects • Individuals who are domiciles of Uttarakhand,


• Gram Panchayats of Uttarakhand in the vicinity of the site ·Societies of Uttarakhand registered under the Society Registration Act,1860/UP Cooperative Society Act 1965

(b) Mini Projects • Individuals who are domiciles of Uttarakhand,

• Gram Panchayats of Uttarakhand in the vicinity of the site

• Societies of Uttarakhand registered under the Society Registration Act,1860/UP Cooperative Society Act 1965

• Firms registered under the Company Act 1956 and having theirmanufacturing units located in Uttarakhand

(c) Small Projects • Open to all without reservations

• Premium to be decided later

(d) Evaluation Criteria • Technical capability including past experience in developing, constructingor operating Energy Projects – maximum 60 marks;

• Financial capability, including the capacity to invest in the equity of theproject and the ability to arrange for institutional finance. The minimumfinancial capability (Solvency Certificate to be provided) would be Rs.10.00lakhs for Micro projects and Rs.50.00 Lakhs for Mini projects – maximum40 marks.

(e) Mode of Payment In the form of Bank Draft of any Nationalised Bank

(i) Application fee Rs. 5000/-(Non-refundable)

(ii) Processing fee • Micro Projects – Rs. 10,000/-(Non-refundable) • Mini Projects – Rs. 25,000/-

• Small Projects – Rs. 1,00,000/-

(iii) Security Payment • Micro Projects – Rs. 20,000/-(On signing • Mini Projects – Rs. 50,000/-implementation • Small Projects – Rs. 1,00,000/-agreement)

(f) Allotment of Hydro Projects - State Identified Projects

(i) Eligibility and To be provided in the Request for Qualification (RFQ) /Request for ProposalEvaluation Criteria (RFP) biding documents

(ii) Allotment Open competitive biding without reservations through advertisementProcedures

(a) Prequalification • As per prequalification criteria laid down in RFQ

• Broadly based on balance sheet, annual report, technical and financialcapacity

• Applicants to be short-listed after evaluation

(b) Financial Bid Short-listed applicants to submit their financial bids based on premium

(c) Premium • Above 2 MW and up to 5 MW – Rs. 1,00,000/MW

• Above 5 MW and up to 25 MW – Rs. 5,00,000/MW

Note: Project to be allotted to the highest bidder

(B) Other RE Projects Co-generation, Biomass/agro-residue Wind, Solar, Urban and Industrial Wasteprojects etc.

(i) Allotment On self identification and wherever possible on tariff based bidding

(ii) Evaluation Criteria • Technical capability including past experience in developing, constructingor operating Energy Projects – maximum 60 marks;


• Financial capability, including the capacity to invest in the equity of theproject and the ability to arrange for Institutional Finance – maximum 40marks

(iii) Mode of Payment In the form of Bank Draft of any Nationalised Bank

(iv) Application fee Rs. 5000/-(Non-refundable)

(v) Processing fee • For projects up to 1MW – Rs. 10,000/-(Non-refundable) • For projects more than 1MW – Rs. 25,000/-

(vi) Security Payment • For projects up to 1MW – Rs. 20,000/-(On signing implemen- • For projects more than 1MW – Rs. 50,000/-tation agreement)

8 CDM Benefits To be passed to the Developers

9 Miscellaneous (i) Not more than three projects in each category (as at item no. 2 above) tobe allotted to a developer

(ii) Preference to be accorded to industrial units located in Uttarakhand in theopen competitive bidding process provided the bid is not less than 80%of the highest bid

(iii) State Government reserves its rights to allot a project to a State ownedEnterprise

(iv) In case Micro/Mini hydro projects remains un-allocated, the same to beallotted to any developer through open competitive bidding

(v) If the developer does not restrict to the prescribed time schedule ofcompletion of project, premium to be forfeited and allotment canceled

(vi) Projects allotted before notification of this policy shall be governed by thepolicy under which the allotment was made.

(vii) In case of augmentation of the capacity of self identified projects, thedeveloper to pay additional premium of Rs. 1 lakh per MW or fractionthereof up to 5 MW and Rs. 5 lakh per MW or fraction thereof above 5 MWalong with requisite amount to take into effect the inflation from the dateof payment of premium.

(viii) In case the developer sells his projects before commissioning, he hasto pay an additional amount equal to the bid premium

(ix) Projects to be offered for a period of 40 years from the date of award,thereafter they shall revert to the State Government or extended furtheron mutually agreed terms

10 Royalty • No royalty on micro, mini and other RE projects

• Royalty @ 18% of energy generated to be charged from 16th year ofoperation of small hydro projects which are governed by this policy.


UTTARAKHAND POLICY ON HYDRO POWER DEVELOPMENT BYPRIVATE SECTOR (UP TO 25 MW)


1 Potential Identified for SHP 175 MW at 35 identified locations


3 Participation Independent Power Producers (IPP) to bid for identified projects.

4 Prequalification • Prequalification criteria shall be specified in Bid Documents.


5 Pre-feasibility of Identified • Uttarakhand Jal Vidyut Nigam Ltd. (UJVNL) to prepare pre feasibilityProjects studies.

• Evacuation arrangements to be specified in the pre feasibility studies.

6 Period of Projects • Forty years from the date of award

• To revert back to Govt. of Uttarakhand (GoU) or extended further onmutually agreed terms after 40 years

7 Process of Allotment • Through advertisement

• Applications to be submitted along with non refundable draft of Rs. 1,00.000payable to UJVNL


• Pre-qualified Bidders to be provided pre-feasibility studies prepared byUJVNL

• Bids shall be invited for minimum premium of Rs 5 lakh/MW payable toGovt. of Uttarakhand.

• Highest Bidder to deposit premium / other amount due, within a periodspecified in Bid.

• In case of identical premium for any site, pre-qualification criteria shall bethe basis for allotment

• In case any project fails to get any acceptable Bid despite being bid outtwice, the GoU may allot the site to a GoU Agency.

8 Sale of Power • HT consumer within Uttarakhand,

• Local rural grids which are not connected to Uttarakhand PowerCorporation Ltd (UPCL) main grid

• Rural Power Distribution entities

• Any consumer outside the state or to UPCL

• All sales to be approved by the Regulator.

9 Wheeling Charges • UPCL to provide infrastructure facilities for wheeling the generated energy

• UERC to determine the wheeling charges for wheeling the energygenerated to third party consumers or outside the state

• For projects which are bid out prior to determination of rate by UERC, thewheeling charges would be 10% of net energy supplied at theinterconnection point

• No wheeling charges are applicable for sale to UPCL/ rural powerdistribution entities/local grids within Uttarakhand


• UPCL to provide standard wheeling and banking agreement draft priorto bidding of the projects

10 Grid Interfacing/ • IPPs to lay lines for connectivity to the nearest grid substation normally atTransmission Line 132 kV or 33 kV

• UPCL to determine the specification for evacuation facilities and the samewill be specified in the application form.

• On specific request from IPP, the UPCL to carry out the implementation ofevacuation facilities at charges to be mutually negotiated.

11 Banking • Allowed within fixed period span of 2 months to be specified in the standardwheeling and banking agreement

• Energy banked to be monetised at the average pooled purchase price

•· Point of Banking would be the interconnection point at which the energywill be fed in the UPCLs system

• Developer to pay the difference between monetised value of the banked- in and the banked - Out energy and the peak period differential adjustmentwithin a period of 30 days failing which a penal interest will be levied onthe outstanding amount.

• In case of a balance to the credit of developers, it shall be payable byUPCL within 30 days with a penal interest on overdue settlement

12 Despatch Priority for despatch in to the Grid ahead of merit / any other source ofsupply subject to any overall restrictions on the proportion of power thatmay be bought from such sources, which may be imposed by the Govt. /Regulator.

13 Royalty (Payment) • Exempted for first 15 years of operation on sale of power out side thestate/UPCL / consumers in rural areas not served or inadequately servedby the concerned existing distribution licensee.

• For sale to other parties, a royalty of 12% of net energy wheeled, afterdeducting wheeling charges, or supplied directly without wheeling wouldbe charged.

• Beyond the 15th year royalty of 18% of net energy wheeled or supplieddirectly to be made to GoU free of charge by IPPs.

• In the event of third party sale, electricity duty as per law will apply.

• No further levies, taxes, charges other than stipulated in the policy wouldbe levied by State Government / its agencies / regulator on the IPPsgoverned by this policy for a period of 10 years from the date of this policy

14 Incentives by State There will not be any entry tax on power generation, transmission equipmentGovernment and building material for projects.


16 Time Limit • IPP shall submit DPR & applications for statutory clearances within 32months from the date of allotment.

• IPPs to achieve the financial closure within 12 months from the date ofreceipt of all statutory approvals & clearances.

• Project to be made operational within 48 months from the date of receiptof all statutory approvals & clearances.

• Failure to reach above milestones will result in automatic cancellation ofallotment of site and forfeiture of upfront premium amounts.

• Incentives for early commissioning

• IPP to pay a penalty to GoU in case it fails to make operational the plantwithin the time limit.


• Penalty to be computed at the equivalent royalty revenue that would havebeen payable to GoU had the project met the milestone.

• In case the project enjoys an exemption from royalty in the initial years,the duration of royalty exemption would be reduced by period of delay.

17 Surrender of Allotment • In case the project is not found techno-economically viable on completionof DPR, IPP may surrender the allotment within the stipulated time frameto GoU

• On surrender, bank guarantee and upfront premium to be refunded backto IPP

18 Role of UPCL Preparation of the standard wheeling and banking agreement draft, determinationof evacuation requirements and overseeing banking, dispatch and royaltyarrangements.

19 Role of UJVNL • Preparation of pre-feasibility studies, carrying out the bidding process andmonitoring of the development of allotted projects / delivery as per timeschedule.

• UJVNL will not participate in bidding process. However, after allotment,upon request from the IPP, the UJVNL may consider participating as aminority partner (with less than 50% share holding interest) or performcertain tasks for the bidder on a consultancy basis.

20 Regulatory Over sight Aspects of this policy that require regulatory approvals would be subject to suchapprovals in the manner approved by the Regulator.

21 Due Diligence Applicant / IPP shall be responsible for carrying out due diligence with regard tohis compliance responsibilities under various applicable central / state / otherlaws, rules and regulations and ensure compliance with the same.

22 Power to Resolve Difficulties Vested with the Government of Uttarakhand.


GOVERNMENT OF UTTAR PRADESH

POLICY GUIDELINES FOR DEVELOPMENT OF SMALL HYDRO POWER PROJECTSUP TO 25 MW CAPACITY IN UP


1 Title Policy Guidelines for Development of Small Hydro Power projects up to 25 MWcapacity in U.P.

2 Power Potential for SHP 167 MW identified at 60 locations.

3 Major Incentives

(a) Announced by Incentives/ financial assistance for SHP by MNRE, GoI may be availed of by theGovernment of India developer.

(b) Announced by • All necessary facilities for SHP in private sectorGovernment of UP

• Land for SHP with sub station to be acquired by the State Govt. andtransferred to the private sector at the acquisition cost with out acquisitionfee and stamp duty for registration of the land .

• Government land if required to be made available, for a period of 30 yearson lease at fixed rate of Rs.100 per acre, which can be further renewed upto 30 years or lesser period equal to the remaining period of life of theproject subject to the approval of both the parties.

• Private developer shall not be required to obtain Govt. permission for theright of way for construction of transmission line and associated workslinking SHP plant with the state grid sub station.

• However, he shall intimate the owner of private land in advance andadequate compensation for use of private land for over head lines as perrule shall be payable by him.

• In case of laying of under ground cables in private land, no compensationshall be required to be paid to private owner provided that the land is filledwith earth and properly levelled.

• In case land belongs to State or local bodies no payment to be made forright of way for transmission lines.

• Power generation from such small hydro power plant shall be exemptedfrom electricity duty.

4 Taxes and Duties Payable by Developer

5 Private Sector Participation • Identified small hydro power projects to be advertised in order to seekbids from private entrepreneurs'.

• Bidders to be assessed for pre qualification based on pre determinedattributes and only qualified bidders to be considered for allotments, toabide by provision of EA.

6 Allotment of Project • Project to be advertised widely to seek bids from private entrepreneurs

• A comprehensive tender document shall be designed for inviting tariffbased bids listing out technical and financial parameters.

• All pre qualified bidders will be subject to pre qualification criteria mentionedin the document.

• Interested parties may bid for more than one potential site with the conditionof submission of separate bid for each site.

• The state Govt. shall constitute high power committee of experts underthe chairman ship of secretary/ principal secretary of additional energy/energy department for final allotment of project.


• For private sector allotment up to 15 MW, Non-conventional EnergyDevelopment Agency (NEDA) will act as a Nodal agency

• For projects above 15 MW and up to 25 MW it will be UPJVNL.

• Accordingly NEDA or UPJNVL be, will act as convener of committee toput the case before the committee for final allotment.

• The bidder with lowest levelised tariff for 25 years will be considered forallotment for SHP.

7 Administrative Charges Facilitation service charges 0.25% of the project cost payable to NEDA/ UPJVNL.

8 Clearance by the Irrigation • To provide No Objection Certificate to the private developer for setting upDepartment UP of SHP proposed after the allotment has been made within 60 days from

the date of application by private developer.

• To provide all assistance in the development of SHP as and when requiredwithin stipulated time frame work.

9 Operational issues • After allotment the private developer shall sign a MOU with the nodalagencies NEDA/ UPJVNL

• If the applicant does not take effective steps to implement the projectwithin six months from the date of allotment of project, the allotment couldbe cancelled and considered for re-allotment to any other development orGovt. agencies for implementation

• Nodal agencies to assist the developer in obtaining statutory /necessaryapprovals required to build and operate the small hydro power project.

• The entire cost of SHP including civil works, E&M works shall be borne byprivate developer. Since the developer is required to sell power to UPPCL/ state DISCOMs, 50% of the cost of transmission system shall be borneby the developer and balance 50% by the UPPCL/ state DISCOMs.

• Private developers to be responsible for laying lines for connectivity to thenearest grid substations at the appropriate voltage which may normallybe 132 kV or 33 kV

• For use of river/ canal water, water royalty shall be charged @ 5 paise perunit sold to be payable by the developer.


GOVERNMENT OF WEST BENGAL

POLICY ON MINI/ MICRO HYDRO ELECTRIC POWER STATION UP TO 3 MW


1 Eligibility High and extra high voltage industrial consumers to set up captive power plantthrough non-conventional energy sources including Mini/ Micro Hydro ElectricPower Station up to 3 MW

2 Transmission and Wheeling • Wheeling charge of 30 paise /kWh that will be revised from time to time.of Power Generated • Wheeling of power will be allowed to not more than one unit of the same

Industrial Undertaking.

• Industrial undertaking to lay its own transmission lines and the associatedsystem up to the nearest grid sub-station of the utility.

• Developers to maintain the transmission lines.

3 Banking Facilities • Allowed for a period of six months

• The industrial undertaking will be allowed to draw power from the bankduring different time blocks of the day.

4 Power and Sale of Unused • If the banked energy is not used for six months it will be sold to the utilityPower at a rate equivalent to weighted average of the sent out fuel cost of Thermal

Generating Station of the utility.

• The entire power/ energy generated at the captive power plant shall beinjected to/ banked with utility’s grid.

• The amount of energy injected to the grid along with the quantum of energywithdrawn from the Bank each month, shall be shared by the company’sconstituent member of Joint Venture Project in a manner to be intimatedin writing to the utility at the beginning of each year.

• A consumer having Solar P.V. installation to be allowed to inject his surplusenergy to the grid with the banking facility as admissible for industrialundertaking having captive Hydel Power Station up to 3 MW.

• There will be no provision of sale of power by the industrial undertaking toany third party. However, a captive power plant set-up through a jointventure company constituted by a maximum of 2 industrial undertakingswill be eligible to exclusively consume the power from the captive powerplant in one unit each of the participating industrial undertaking in the jointventure company.

• Captive power can be wheeled through the system of one utility only.

5 Payment The industrial undertaking shall have to ensure payment of AMGR as per powersupply agreement executed by them with the utilities