Piyush Goyal

Breaking: ₹8,100 cr Budget Allocated to double solar parks capacity to 40GW

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In an unprecedented move this Wednesday, the Cabinet Committee on Economic Affairs cleared an 8100 cr. proposal to double the solar park capacity to be achieved by 2019-20 to 40 GW.

This move was reportedly motivated by the enthusiastic response received for Rewa’s Ultra Mega Solar Power Park.

Piyush Goyal, Minister of State for Power, said: “The enhanced capacity would ensure setting up of at least 50 solar parks each with a capacity of 500 MW and above in various parts of the country.” The scheme allows for State governments to identify land and select developers. They will then send proposals to MNRE for sanction of grants for preparing Detailed Project Reports and Central Financial Assistance of up to ₹20 lakh/MW or 30 per cent of the project cost including grid-connectivity cost, whichever is lower.

The scheme will be administered by the Solar Energy Corporation India which has done well in the past with projects of scale. Currently, 34 solar parks with a total capacity 20 GW have been approved and are at various stages of development.

This is quite a bold move which will ensure development of solar parks in previously undeserved states such as Himachal Pradesh or Jammu & Kashmir.

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