Draft scheme by MNRE for development of Solar Parks & Ultra Mega Solar power projects

MNRE recently declared  a draft Scheme for development of Solar Parks and Uirra Mega Solar power projects in India with its implementation agency being Solar Energy Corporation of India (SECI.) 

The Scheme is for setting up 25 solar parks, each with a capacity of 500 to 1000 MW; thereby targeting around 20000 MW of solar power installed capacity. Smaller parks of 100 MW and above may be considered in NE, HP, Uttarakhand and J&K. Smaller parks of 100 MW and above may also be considered in UT's and small States with population less than 2 crores. Higher than 1000 MW capacity parks may also be considered under special circumstances.These solar parks will be put in place in a span of 5 years and the solar projects may then come up as per demand and interest shown by developers.

The solar park will provide a huge impetus to solar energy generation by acting as a flagship demonstration facility to encourage project developers and investors, prompting additional projects of similar nature, triggering economies of scale for cost-reductions, technical improvements and achieving large scale reductions in GHG emissions. Some Ultra Mega projects may be set up in these Parks or entire parts may be an Ultra Mega Power Projects.

Land for the setting up of the solar park will be identified by the State Government. It will be the responsibility of the State Government to make the land available. The park must have at least 5 Acres per MW towards installation of solar projects.The State Government will first identify the nodal agency for the solar park and will also identify the land for proposed solar park. Thereafter it will send a proposal to MNRE for approval. After the solar park is approved by MNRE, the implementing agency can apply for a grant of Rs. 25 lakhs for preparing DPR, conducting surveys etc. Thereafter application can be made for the grant at the rate of up to Rs.20 lakhs/MW or 30% of the project cost including grid connectivity cost whichever is lower, which will be released as per the following timelines:

S. No.



% of subsidy disbursed


Date of issue of administrative approval

Day 0



Land acquisition (50% land acquired)

5 months



Financial Closure

8 months



Construction of Pooling Substation, Land Development and other Common facilities as per DPR

15 months



Transmission line and Grid Connectivity




Final installment on completion




If the park is developed in phases, grant will also be phased out in proportion to expenditure in each phase.

Interconnection of each plot with pooling stations through 66 KV /other suitable voltage underground or overhead cable will be the responsibility of the solar project developer.

For further information, please refer to the attached:

  Download the attached file
Solar PV | News published on 11/09/2014 by Rashmi Nargundkar

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