THE MINISTER OF NEW AND RENEWABLE ENERGY (DR. FAROOQ ABDULLAH)
(a), (b),(c),(d),(e) & (f): A statement is laid on the Table of the House.
Statement
Statement referred to in reply to parts (a), (b), (c), (d), (e) & (f) of the
Lok Sabha Starred Question No. 423 for answer on 02.09.2011 regarding Funds
for Renewable Energy Sources
(a): Projects for power generation from various renewable energy sources
are being set up mostly in private sector with largely private investment
backed with fiscal and financial incentives from the Union Government. The
eligible Central Financial Assistance (CFA)/ Subsidy is disbursed to project
developers either directly or through designated State Nodal Agencies/
Departments. State-wise details of the CFA provided for these projects
including those in Uttar Pradesh, during the last three years and the
current year (as on 31.07.2011), are given in Annexure.
(b) & (c): The utilization of funds is a dynamic process. Mostly the
funds are released to project developers only after projects completion to
ensure complete utilization. Some funds are released to/ through State Nodal
Agencies in installments linked with projects progress, with further releases
being made only after utilization of the funds released earlier. The Ministry
holds periodic meetings with concerned implementing agencies to review the
progress of the projects and hasten the pace of funds utilization.
(d),(e) & (f): Yes, Madam. The Government has taken several measures to
facilitate private sector participation in setting up of the renewable energy
projects. These include:
# Fiscal and financial incentives such as, capital/ interest subsidy/ generation
based incentive, accelerated depreciation, nil/ concessional excise and
customs duties;
# Generation Based Incentives Scheme introduced for Wind power and Solar
Power to attract private investment by Independent Power Producers not
availing Accelerated Depreciation benefit.
# Directives under Electricity Act 2003 to all States for fixing a minimum
percentage for purchase of electricity from renewable energy sources;
# Preferential tariff for grid interactive renewable power in most potential States
following the provisions made under the National Electricity Policy 2005 and
National Tariff Policy 2006; Uniform guidelines by CERC for fixation of such
preferential tariffs being issued every year.
# Jawaharial Nehru National Solar Mission initiated in January 2010 to enable
large scale capital investment in solar energy applications; Payment Security
Mechanism for Grid Connected Solar Power Projects under the Mission.
As a result, Grid-interactive power generation capacity of around 20,800 MW
(14,723 MW wind power, 3,133 MW small hydro power, 2,898 MW biomass power,
and 46 MW solar power) has been installed in various States, including 638 MW
in Uttar Pradesh (25 MW small hydro power, 608 MW biomass power, 5 MW Waste-to-
power and 0.4 MW solar power) as on 31.7.2011, majority of which is in private
sector.
