Annexure -I
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
SCHEME FOR PROMOTION OF GRID INTERACTIVE POWER GENERATION PROJECTS BASED ON RENEWABLE ENERGY TECHNOLOGIES
The Ministry of New and Renewable Energy (MNRE) has been providing subsidy to grid-interactive power generation based on various renewable energy sources. Through this scheme, the Ministry would provide subsidy to projects in government/ private / joint / co-operative / NGO sector. to set up grid-interactive power generating projects based on the following renewable energy sources:
Small Hydro
Biomass
Wind Power (only demonstration projects)
2. The subsidy for private sector, joint sector, cooperative sector etc. projects will be released after successful commissioning, and commencement of commercial generation and testing of the project, except in the case of cooperative/public and joint sector bagasse cogeneration projects. For Government projects only, subsidy would be released linked to physical progress.
3. The Ministry reserves the right towards grant of subsidy and to review/recall the sanctioned/released subsidy in the event of subsequent developments coming to its notice, which is in violation to this scheme or may adversely affect the project. The Financial Institution (FI) and the Developer shall be bound by the decision of the Ministry in this regard.
I. DEFINITION
Small Hydro Power (SHP) Project: Hydro Power projects with a station capacity upto and including 25 MW.
Biomass: For the purpose of eligibility under this scheme, biomass will include wastes produced during agricultural and forestry operations (for example straws and stalks) or produced as a by-product of processing operations of agricultural produce (e.g., husks, shells, deoiled cakes, etc); wood produced in dedicated energy plantations or recovered from wild bushes/weeds; and the wood waste produced in some industrial operations.
Cogeneration: It is the process in which more than one form of energy (such as steam and electricity) is produced in a sequential manner by use of biowaste of a renewable nature, including bagasse and rice husk.
Bagasse Cogeneration: Cogeneration is combined heat and electricity (CHP) in the sugar mills using bagasse.
Biomethanation: Means a process which entails enzymatic decomposition of organic matter by microbial action to produce methane rich biogas.
Biomass Power using Advanced Technologies: This includes technologies such as Biomass Integrated Gasification and Combine Cycle (BIGCC); Integrated Pyrolysis Combine Cycle (IPCC); Fluidized Bed Gasification (FBG) and plasma.
Biomass Combustion: Biomass materials are burned to produce steam (Rankine Cycle)
Surplus Electricity: Quantum of installed electricity generation capacity which is over and above the captive requirement of the mill, colony etc.
Special category States and Islands: Seven States of NE Region, Sikkim, Himachal Pradesh, J&K, Uttaranchal and Island Uts.
II. ELIGIBILITY
A. Capacity and other Parameters
Projects with the following capacity/parameters will only be eligible under the scheme;
Small Hydro
:
· Upto 25 MW
Biomass Based Project
Biomass Power (combustion)
:
· Minimum 62 bar steam pressure
· Maximum of upto 15% use of fossil fuel of total energy consumption in K.cals or as per DPR, whichever is less.
· For only new boilers and turbines
(capacity limited to in accordance with the estimated potential in a state)
Co-generation
:
· Minimum 40 bar steam pressure
· Maximum of upto 15% use of fossil fuel of total energy consumption in K. cals. or as per DPR, whichever is less, during crushing season.
Biomass power with advanced
technology
:
Wind Energy
(only for State Governments)
:
· WEG installed capacity greater than
500 KW
· not more than 1% of technical potential of the state or 6MW, which ever is less
· states where commercial activity has not yet been initiated. / taken off
III. SUBSIDY
Following subsidy is proposed to be provided to new grid connected power projects. The subsidy for the projects is linked to capacity(C in MW)of the project and the per MW subsidy will decrease with increase in capacity of the projects above I MW and vice versa.
|
|
Special Category States (NE Region, Sikkim, J&K, HP & Uttaranchal) |
Other States |
|
Small Hydro Power projects |
Rs 2.25 crores X (C MW)^0.646 |
Rs 1.50 crores X (C MW)^0.646 |
|
Biomass Based projects |
||
|
Biomass Power projects |
Rs 25 lakh X |
|
|
Bagasse Co-generation |
Rs 18 lakh X (C MW)^0.646 |
Rs 15 lakh X (C MW)^0.646 |
|
Bagasse Co-generation projects by cooperative/ public/joint sector
40 bar & above 60 bar & above 80 bar & above
|
Rs. 40 lakh * Rs. 50 lakh Rs. 60 lakh Per MW (maximum support Rs. 8.0 crore per project) |
Rs. 40 lakh * Rs. 50 lakh Rs. 60 lakh Per MW (maximum support Rs. 8.0 crore per project) |
|
Biomass Power using Advanced Technologies |
Rs. 1.2 crore X (C MW)^0.646 |
Rs. 1.0 crore X (C MW)^0.646 |
|
Wind Power projects |
Rs 3.00 crores X (C MW)^0.646 |
Rs 2.50 crores X (C MW)^0.646 |
*For new sugar mills (which are yet to start production and sugar mills employing backpressure route/seasonal/incidental cogeneration) subsidies shall be one-half of the level mentioned above.
(i) Subsidy for Renovation and Modernisation of old SHP projects and for completion of languishing SHP projects would be limited to 50% of the subsidy amount for new SHP projects. This support is only for the government sector.
(ii) Subsidy for identification of new potential SHP sites and preparation of perspective plan by State agencies and Water mills will be same as in the present scheme.
(iii) The activities of R&D, support for seminar/symposium, strengthening of technical institution etc will continue to be supported by the Ministry on case by case basis.
IV. QUALITY OF PROJECT
Quality of project and the equipment utilised therein is considered important for reliability and long-term operations. Project developers would be required to follow various international standards or national standards harmonized with the same as applicable to respective technologies. This would be an important criterion in granting subsidy for a project. The Ministry would issue list of such standards time to time.
SHP
For SHP projects, equipment must conform to the following standards.
|
Equipment |
Standard |
|
Turbines and generator (rotating electrical machines)
|
IEC 60034 – 1: 1983 IEC 61366-1: 1998 IEC 61116-1992 IS: 4722-2001 IS 12800 (part 3) 1991
|
|
Field Acceptance Test for Hydraulic performance of turbine |
IEC 60041: 1991 |
|
Governing system for hydraulic turbines |
IEC 60308 |
|
Transformers |
IS 3156 – 1992 IS 2705 – 1992 IS 2026 - 1983 |
|
Inlet valves for hydro power stations & systems |
IS 7326 - 1902 |
Wind power projects must confirm to relevant international/national codes of practices, including the following standards:
|
Equipment |
Standard |
|
Wind Turbines safety and design |
IEC 61400 , IEC 61400-1 Ed2 IEC 61400-2 |
|
Power performance |
IEC 61400-12 |
|
Noise Measurement |
IEC 61400-11 |
|
Mechanical load Measurement |
IEC 61400-13 |
|
Wind Turbine Certification |
IEC 61400-22 |
|
Blade Structural Testing |
IEC 61400-23 |
|
Power Quality |
IEC 61400-21 |
The projects would also be required to be tested for performance as per DPR norms. For SHP projects, AHEC IIT, Roorkee would carry out the performance test and cost towards this would be borne by the developer whereas for wind projects C-WET will carry out the same at the cost of the developer.
Biomass and Cogeneration
Standards being issued separately.
V. SUBMISSION OF REQUEST FOR SUBSIDY
(i) Application for subsidy should be submitted in the prescribed format complete in all respects after erection and successful commissioning of the project in cases where subsidy is back ended. However, in case where part subsidy is upfront, application is required to be sent before commencement of the project with a copy to the concerned SNA. The prescribed format are enclosed.
(ii) For projects where loan is being availed, the application should be submitted complete in all respects through the lead FI.
(iii) The Developers/Agencies/State Government/Institutions/Industries setting up projects through their own resources may submit the application complete in all respects directly with a copy to the concerned SNA.
(iv) In case where there is upfront subsidy/part subsidy, the application, complete in all respects, should be submitted in the prescribed format after obtaining all necessary statutory clearances and financial closure. The application should clearly indicate the expected date of completion of the project, performance guarantee test and commencement of commercial generation of electricity.
(v) Mere submission of application, or in case additional information is sought by MNRE, the same would not tantamount to eligibility for subsidy.
(vi) All application should reach the respective divisions in MNRE as follows:
(i) SHP proposals – Attention: Dr. P. Saxena/Shri A.K. Chopra
(ii) Biomass and Cogeneraiton – Attention: Dr. J.R. Meshram
(iii) Wind – Attention: Dr. J.R. Meshram
VI. SANCTIONING OF SUBSIDY
VII. RELEASE OF SUBSIDY
Upfront subsidy/part subsidy
(i) For government sector projects, subsidy would be released as: 25% at the time of sanction, 50% with physical progress on ground and 25% after successful commissioning of the project as per DPR norms and performance testing.
(ii) For bagasse cogeneration projects in cooperative / public/ joint sector sugar mills 50% of eligible subsidy will be released to the FI after sanction of the loan towards reducing the loan amount. Balance 50% will be released after successful commissioning of the project as per DPR norms, and performance testing during which operations should be demonstrated for atleast 90 days and 100 per cent rated capacity for atleast 72 hours.
(i) Sanctioned subsidy amount shall be released in a single installment, on successful commissioning of the project and performance testing during which 80 per cent of rated capacity should be demonstrated for 90 consecutive days and 100 per cent rated capacity for atleast 72 hours. A certificate from the concerned SEB/transmission company (the authority designated in the State for signing PPA) will have to be produced to this effect. The subsidy would reduce the loan by an equivalent amount and would be deemed as a pre-payment of the loan by the developer. In case the project is set up by the developer through its own resources, the subsidy would be released directly to them.
For all projects
(i) The developer or his successor will be required to provide data on its generation performance on a six monthly basis to MNRE for a period of 10 years after it has commenced commercial generation.
(ii) The Ministry will have the right to publish case studies/success stories/ articles/ technical papers on projects provided subsidy/part subsidy.
(iii) Award of subsidy by the Ministry will not make it a party to any liability which may arise on account of operation of the project such as accidental injury to persons, damage to surroundings, rehabilitation of displaced persons etc. The promoters will have to expressly undertake at the time of application to absolve the Ministry in totality of all such liabilities.
VIII. INCENTIVES TO STATE NODAL AGENCIES
The State Nodal Agencies would be given an incentive/service charge @ 0.25% of subsidy in order to facilitate developers in setting up projects except in the case of SHP projects. This would be released after release of full subsidy amount.
IX. ONGOING SANCTIONED PROJECTS AND PENDING PROPOSALS
In order to rationalize incentives given by the Ministry under its old schemes for grid interactive renewable power, it is proposed that such projects which have been supported by the Ministry in past under its interest subsidy schemes would be given option to get the un-disbursed subsidy amount adjusted against the outstanding loan amount as one time support after successful commissioning of the project as above. The subsidy total amount as per the proposal will be equivalent to the original sanctioned interest subsidy amount, taking the appropriate discount factor used in the case of release of funds to IREDA. This would not lead to any additional outgo of funds as the same have already been released to IREDA / other FIs
X. The scheme would be applicable from date of its issue and would continue upto the end of 10th Five-Year Plan i.e. 31 March 2007.
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PROFORMA SHP-I
APPLICATION FORMAT FOR SUBSIDY TO COMMERCIAL SHP PROJECTS
UNDER SMALL HYDRO POWER PROGRAMME
(TO BE FILLED IN BY DEVELOPER/PROMOTER)
A. GENERAL
1. Name of the project :
2. Address, phone, Telex and Fax numbers of the project office :
3. Name of the Developer & his address :
4. Constitution of the Organisation :
(private sector/joint sector/ public sector/ co-operative etc.)
B. PROPOSED PROJECT
5. Name of Project :
6. Location
(a) State (b) District : (c) Village :
7. Name of river :
8. Cost of the project ( with break-up of costs) :
9. Means of Financing
i) Promoter's Contribution :
ii) Term loans and name/address of FIs providing it :
iii) Any other :
10. Conditions of loan approved by the financial institution
i) Security :
ii) Promoter's contribution :
iii) Payment schedule :
iv) Interest rate :
v) Any other :
11. Scheduled date of completion of the project
performance guaranty tests and
commencement of commercial generation
C. PROJECT PROFILE (TECHNICAL)
12. Capacity in MW :
13. Number of units and size :
14. Design Head in meters :
15. Design discharge in Cumecs :
16. Annual Energy Generation :
17. Generation cost Rs./KWH :
(To be signed by authorised signatory)
Dated: _____________
Enclosures:
I. Two copies of recent DPR conforming with the CEA/CWC guidelines.
II. Copy of the letter of allotment of SHP site to the developer from the State Govt./ Agency.
III. Copy of MOU between State Govt. and the developer for setting up of project.
IV. Copy of State Govt.'s recommendation addressed to the Ministry.
V. Copies of the Statutory clearance such as
-Clearance from Irrigation Department,
-Clearance from the State Electricity Board/Power Department/State Agenc
-Environmental clearance
-Forest clearance
-Any other statutory clearanc
VI. Copy of the PPA etc.
VII. Documentary evidence indicating land acquisition for the project.
(To be signed by authorised signatory)
Dated: _____________
PROFORMA SHP-II
APPLICATION FORMAT FOR FINANCIAL INSTITUTIONS FOR SUBSIDY OF SHP PROJECTS UNDER THE SMALL HYDRO POWER PROGRAMME
(TO BE FILLED IN BY EACH FINANCIAL INSTITUTION PROVIDING TERM LOANS FOR THE PROJECT)
1. Name of the F.I. Along-with complete address, telephone No.,
Fax No., etc.
2. Name of contact person:
3. Name of the Project & Location for which subsidy is requested
4. Total project cost :
5. Term loan approved :
6. Conditions of loan (copy of approval letter to be enclosed)
- expected schedule for release of loans
- interest rate
- moratorium :
- repayment period :
- security :
- any other :
7. Other term loans, if any, proposed to be taken from any other financial institution alongwith terms
(To be signed by authorised signatory)
Dated: _________________
PROFORMA SHP-III
APPLICATION FORMAT OF SUBSIDY FOR SETTING UP NEW SHP PROJECTS IN THE GOVERNMENT SECTOR
1. Name of the Organisation :
2. Postal Address :
3. Fax No. :
4. Email Address :
5. Name of Chief Executive with :
Designation
6. Tel: Office :
Res. :
7. Name of Project :
8. Rated :
i) Capacity
ii) Head
iii) Discharge
iv) Generation
9. Name of the river/stream/dam/canal
10. Location (incl. District, State) :
11.Whether grid-connected; and the :
distance of grid
12. Estimated cost of the project (Rs. lakhs):
a) Total
b) Civil Works
c) E&M Works
d) Other
13. Means of financing :
a)MNRE support
b) Loans
c) Other sources
15. Period and schedule of completion :
(To be signed by authorised signatory)
Dated:____________
PROFORMA SHP-IV
APPLICATION FORMAT TO AVAIL SUBSIDY FOR RENOVATION, MODERNISATION AND CAPACITY UPRATING OF EXISTING SHP PROJECTS
1. Name of the Organisation :
2. Postal Address :
3. Fax No.:
4. Email address :
5. Name of Chief Executive with :
Designation
6. Telephone No.: Office :
Res. :
7. Name of Power Station :
and installed capacity
8. Location (incl. District, State) :
9. Date of commissioning :
10. Plant Load Factor for last 3 year :
11. Plant Availability Factor for last 3 year :
12. Estimated cost of the R&M works:
a) Total
b) Civil Works
c) E&M Works
d) Other
13. Means of financing :
a) State funds/Own resources
b) Loans
c) Other sources
14.Completion Schedule (in months) :
15. Enclosures
a) Three copies of the R&M reports.
b) Copies of all necessary statutory clearances.
c) Recommendations of concerned State Govt.
d) Commitment for matching funds including financial tie up.
(To be signed by authorised signatory)
Dated:______________
PROFORMA SHP-V
APPLICATION FORMAT OF SUBSIDY FOR LANGUISHING SHP PROJECTS TAKEN UP IN THE GOVERNMENT SECTOR
1.Name of the Organisation :
2. Postal Address :
3. Fax No. :
4. Email Address :
5. Name of Chief Executive with :
Designation
6. Tel: Office :
Res. :
7. Name of Project :
8. Rated :
v) Capacity
vi) Head
vii) Discharge
viii) Generation
9. Name of the river/stream/dam/canal
10. Location (incl. District, State) :
11.Year of start of the project/org. estimated cost:
12. Latest estimated cost of the project (Rs. lakhs):
a) Total
b) Civil Works
c) E&M Works
d) Other
13. Estimated cost of balance works (Rs. lakhs):
a) Total
b) Civil Works
c) E&M Works
d) Other
14. Details of financial tie-ups:
15. Amount of Capital subsidy :
Requested
16. Completion schedule (in months) :
(To be signed by authorised signatory)
Dated:____________