MNRE Adds UMREPP In Development Scheme For Solar Parks and Ultra Mega Solar Power Projects

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Ministry of New & Renewable Energy (MNRE) has recently announced Modifications in Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects

So far, there are seven modes under which the scheme is implemented.Ministry has now introduced another Mode-8 named ‘Ultra Mega Renewable Energy Power Parks’ (UMREPP). 

Following are the features of the Mode-8 of UMREPP :

Solar Power Park Developer (SPPD): The developer under UMREPP includes CPSU/ State PSU/ State Government organization or their subsidiaries.A joint venture company (JVC) between two or more of the above entities may also act as the SPPD.

Role of State Government: Under this scheme the state government will provide necessary assistance to the SPPDs in identification & acquisition of land for setting up of UMREPPs and also to facilitate all required statutory clearances. The state government may designate any state government organization for the purpose.

The land for UMREPP will be allotted with a condition that the development must be completed within 2 years (with a provision of extension for one year under extreme cases) failing which the state government may take back the allotted land in consultation with this Ministry.’

A committee needs to be set up under the Chairmanship of Principal Secretary/ Secretary (power/energy/renewable energy) of the concerned state government, having CEO of the SPPD, head of state nodal agency, and 3 experts in the field of Renewable Energy and Power Systems as members of the committee. Then the committee will facilitate setting up of the UMREPP, monitor the progress and also fix the one-time upfront charges and annual Operation & Maintenance (O&M) charges etc. to be charged from the power developers. The UMREPPs are not to be taken as profit-making activities and maximum 16 percent return on equity may be allowed.

For the above activities, state government or any organization designated by the state government would be paid a facilitation charge of Rs 0.05/unit of power being generated from the projects in the UMREPPs for the entire PPA period of the project. This facilitation charge may be paid to state governments only on the quantum of power that is exported outside the state from that UMREPP and only if no facilitation charge or similar charge is levied under the state government policy.

Compensation to the SPPD: The SPPD will be entitled to the compensation for the development and management of the UMREPPs under Central Financial Assistance (CFA).While calling for the bids for power projects the standard bidding guidelines issued by the GoI will be followed.

Power Projects inside UMREPPs: The power projects inside the UMREPPs may be developed either under developer mode via tariff-based competitive bidding (TBCB) process or under EPC mode or any combination of both.The SPPD or any of its individual promoters cannot take part in tariff based competitive bidding process.

Ministry of New & Renewable Energy (MNRE) has recently passed an order in regards with  formation of Project Development Cell (PDC) with the aim of attracting investments in India.The  main two objectives of Project Development Cells (PDCs) is to create projects with all approvals, land available for allocation and with the complete Detailed Project Reports for adoption/investment by investors and to identify issues that need to be resolved in order to attract and finalize the investments and put forth these before the Empowered Group.

The Ministry of New & Renewable Energy (MNRE) had earlier issued notice announcing creation of Foreign Direct Investment (FDI) cell in the Ministry of New & Renewable Energy (MNRE) for processing FDI proposals — reg. The notice states that the Government of India had recently reviewed the FDI policy for curbing opportunistic takeovers acquisitions of Indian companies due to the current COVID-19 pandemic.

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