Centre allocates Rs228 crore as subsidy for solar power plants over canals
12 December 2014
The central government has sanctioned Rs228 crore for setting up solar power plants across and on the banks of canals on all feasibile locations across the country.
The funding will support the government's target of 100 megawatt (MW) capacity on canal banks and canal tops by 2017. India currently has two canal top solar power projects, both on the Narmada canal in Gujarat.
The government has estimated the total cost of setting up 100 MW of canal bank and canal top solar power plants at Rs975 crore and proposes to provide subsidies to the extent of Rs228 crore for this.
The objective is to gainfully utilise the unutilised areas on top of the canals and also the vacant government land along the banks of canals wherever available for setting up solar power generation plants for feeding power to the grid, the ministry of new and renewable energy has said.
The canal top and canal bank projects will help states meet their renewable purchase obligation (RPO) mandates and also provide opportunities to local population, the ministry said.
Under the scheme, the government will give the investor a subsidy of Rs3 crore per MW or 30 per cent of the project cost - whichever is lower - for a canal top project, and Rs1.5 crore per MW or 30 per cent of the project cost - whichever is lower - for a canal bank project.