Policy Framework and Key Incentives for RE Technologies

Si
Technology Policy Framework Key Incentives
No

Fiscal and financial incentives import duty on specified wind turbine Parts
Wheeling, banking, Third party sale, Buy-back
1 Wind Power 80% accelerated depreciation
facility by
 Capital states and sales tax incentives in
subsidies
Customs and Excise duty relief
certain states
Loans through IREDA (Indian Renewable Energy Development Agency
Limited )

 Fiscal and financial incentives  Detailed project report preparation at discounted price
 Wheeling, banking, Third party sale,   Buy-back
Grant for setting up projects in North Eastern States
Small Hydro facility by states
2
Power  Financial support for renovation, modernization and   capacity up-rating of
 Capital subsidies and sales tax
old SHP (Small Hydro Potential) stations
  incentives in certain states  Financial support for development/upgradation of water    mills
 Soft loans from IREDA for setting up of SHP projects upto 25 MW capacity

 Enactment of favorable policy regimes   at the

state as well as the Central   levels
3 Biomass Power Buy-back/Wheeling/Banking of generated
electricity by the SEBs
Incentives in the form of sales tax   exemptions,
equity and grants, etc.
subsidy for commercial biomass power projects
 Upto 3% interest subsidy for biomass/bagasse   cogeneration (commercial
projects)
 Capital subsidy for cogeneration projects in Joint
  Venture model/IPP ( Independent Power Project ) mode in
cooperative/public sector sugar mill
 Financial assistance under the National Biomass
  Resource Assessment Program (NBRAP)

Easy allotment of land, supply of garbage and

facilities for evacuation, sale and purchase of
Energy from  Commercial Projects: Financial assistance as interest subsidy for reducing
4 power to encourage setting up of waste-to-
Waste rates of interest
energy projects

Demonstration Project: Financial assistance on   capital cost of the project

 Power Generation at Sewage Treatment Plants:
  Financial assistance on incremental cost for Generation of power from the
bio-gas
 No specific conditions for JV formation
Solar EOU to set up a manufacturing   plant
5
Photovoltaics  Technology transfer for the   manufacture of
silicon solar cells and and PV Systems
Central subsidy to users
 Remuneration to SEWs
 Dealership support to Fair Price   Shops
6 Biogas
Organizational and infrastructure
  support to implementing agencies
 Technical and training support
MNES financial incentives for solar PV grid  
  connected power projects
IREDA financial package for solar photovoltaic    (power generation
systems)
MNES(Ministry of Non- Conventional Energy Sources) Financial Incentives
for Solar Photovoltaic Systems
 Special incentives are available for turnkey
  entrepreneurs in rural areas
Loans from commercial and cooperative banks for  setting up of biogas
plants under Agricultural Priority Area
 Automatic refinancing by NABARD( National Bank Of Agriculture and Rural
Development)
Source: Ministry of New and Renewable Energy, India.