Union Ministry Extends Scheme for Solar Parks, Mega Projects until FY26
POWER & RENEWABLE ENERGY

Union Ministry Extends Scheme for Solar Parks, Mega Projects until FY26

The scheme for 'Development of Solar Parks and Ultra Mega Solar Park Projects' has been extended by the union ministry of new and renewable energy until FY26. According to a notification from the ministry, this extension will not result in any additional financial implications. The original schedule had set the scheme to end in March 2024.

Introduced in December 2014, the scheme aims to assist states and union territories in establishing solar parks across the country, providing the necessary infrastructure for solar power projects. A solar park is a large area of land developed with shared infrastructure facilities such as transmission infrastructure, roads, water, drainage, and communication networks, along with all the required statutory clearances.

Under this scheme, the ministry offers central financial assistance (CFA) of up to Rs 25 lakh per solar park for the preparation of a detailed project report (DPR). Additionally, CFA of up to Rs 20 lakh per MW or 30 per cent of the project cost, including grid-connectivity expenses, whichever is lower, is provided upon achieving the milestones outlined in the scheme.

The decision to extend the scheme comes in light of the slow progress observed in the development of solar parks. In a response to a question in the Lok Sabha in March, RK Singh, the union minister for new and renewable energy (MNRE), revealed that out of the 57 solar parks with a total capacity of 39.28 GW, only nine were fully completed, and another eight were partially completed as of February 2023.

Singh attributed the delay in establishing solar parks to various factors, including challenges related to acquiring suitable land, discrepancies in timelines between solar projects and power evacuation infrastructure, environmental concerns such as the Great Indian Bustard (GIB) issue, and regulatory obstacles like the non-approval of solar tariffs by State Electricity Regulatory Commissions (SERCs). 

The scheme for 'Development of Solar Parks and Ultra Mega Solar Park Projects' has been extended by the union ministry of new and renewable energy until FY26. According to a notification from the ministry, this extension will not result in any additional financial implications. The original schedule had set the scheme to end in March 2024.Introduced in December 2014, the scheme aims to assist states and union territories in establishing solar parks across the country, providing the necessary infrastructure for solar power projects. A solar park is a large area of land developed with shared infrastructure facilities such as transmission infrastructure, roads, water, drainage, and communication networks, along with all the required statutory clearances.Under this scheme, the ministry offers central financial assistance (CFA) of up to Rs 25 lakh per solar park for the preparation of a detailed project report (DPR). Additionally, CFA of up to Rs 20 lakh per MW or 30 per cent of the project cost, including grid-connectivity expenses, whichever is lower, is provided upon achieving the milestones outlined in the scheme.The decision to extend the scheme comes in light of the slow progress observed in the development of solar parks. In a response to a question in the Lok Sabha in March, RK Singh, the union minister for new and renewable energy (MNRE), revealed that out of the 57 solar parks with a total capacity of 39.28 GW, only nine were fully completed, and another eight were partially completed as of February 2023.Singh attributed the delay in establishing solar parks to various factors, including challenges related to acquiring suitable land, discrepancies in timelines between solar projects and power evacuation infrastructure, environmental concerns such as the Great Indian Bustard (GIB) issue, and regulatory obstacles like the non-approval of solar tariffs by State Electricity Regulatory Commissions (SERCs). 

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code