Maharashtra Energy Development Agency

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Maharashtra Energy Development Agency
Pune Welcomes all the participants
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MAHARASHTRA ENERGY DEVELOPMENT AGENCY
Policy initiatives by Maharashtra State for
Renewable Energy Development by Dr Sudhir
Kumar General Manager, MEDA
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Introduction

• MNES policies till 1985
• No specific State Policy
• Withdrawal of subsidy from 1993 by MNES
• CEA first time announced policy for private
• participation in power sector
• GoM policy for power generation from private
• 1995
• Series of policy announced for power generation
  
• for private generation after 1995

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• General Policy
• No Individual / Organization to generate power
  Electricity Act 1948
• Permission to generate power for private use- GR
  dated 28-12-1995
• Captive generation along with supply to MSEB
• Sell power to any industrial unit
• Exempted from electricity duty.

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• Private participation in power generation upto
  400 crores GR dated 29-01-1996
• MEDA authorised for Technical and Financial
  scrutiny of proposal for wind and municipal power
  projects
• MSEB made responsible to purchase electricity
  from Renewable energy
• Power generation exempted from electricity duty.
• Concept of wheeling, banking and 3rd party sale

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Wind Power Projects

• Less private investors after January 1996 policy
• Exclusive policy for wind dated 12-03-1998
• Fixed tariff- Rs 2.25/- per unit with 5 annual
  
• escalation for first 10 years
• banking for 1 year, wheeling _at_2 charge
• 3rd party sale to two parties
• Financial support to developers for
  Infrastructure Development

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Wind Power Projects

• Capital subsidy of 30 of capital investment
• Octroi was exempted
• Sales tax benefits
• Promoters created own wind park
• 400 MW wind power projects installed with
• investment of 2000 crores.

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Wind Power Projects

• Clarification of procedure for getting Sales tax
  benefit by further GR dated
• 01-10-1999
• 25-07-2001
• 07-01-2002

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Wind Power Projects
Sales Tax incentive withdrawn vide GR dated
01-01-2000 Projects eligible for sales tax
benefit i.e sanctioned before 01-01-2000
commissioned and connected to MSEB before
31-03-2002 Wind sector achieved full
commercialization.
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Wind Power Projects

• New wind power policy announced 26-02-2004
• Target 750 MW by March 2007 on 28 feasible
• sites
• Electricity duty exemption for 5 years
• Infrastructure facilities
• 100 expenditure on approach roads
• 50 expenditure of power evacuation
• 11 equity grant for cooperative societies

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Wind Power Projects

• New wind power policy announced 26-02-2004
• Tariff Rs 3.50
• Escalation of Rs 0.15 per year upto 13 years for
  
• projects commissioned till March 2007
• 1035 MW projects installed
• 400 MW proposals seeking clearance

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Baggase Co-generation

• First Policy 18-10-1997
• Tariff- Rs 2.25 per unit
• Escalation 5 per year for first 10 years
• Foreign exchange fluctuation to be absorbed by
  government.
• MSEB to bear expenses of power evacuation
• No attraction of private investors in sugar
  factory
• Tariff to be reviewed after March 2007 or after
  attaining the addition of 300 MW
• 3rd party sale allowed, Banking allowed
• Wheeling at the rate of 3 charge

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Waste to Energy Projects

• Government of Maharashtra Policy 13-05-1998
• 100 banking for 1 year
• Tariff Same as Baggass Co-generation
• Wheeling _at_ 2 charge
• Land at lease rent Rs 1 per sq. mtr/ year by
  Municipal corporations
• Free supply of solid waste at site
• 3rd party sale allowed, Octroi was exempted

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Waste to Energy Projects

• Sales Tax benefit upto 50 of eligible investment
  in six equal investment
• Withdrawn of sales tax benefit , GR 03-05-2000
• MERC tariff MC and promoter to be mutually
  decide

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Small Hydro Project

• 25 MW SHP handled by MNES
• 5 MW SHP transfered by GoM
• Policy announced -- 22-09-1999
• Tariff Rs 2.25 per unit
• Wheeling and banking allowed
• Concession in excise duty, turn over tax
• Octroi exemption, Sales tax incentive,
• Concessional electricity duty

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Small Hydro Project

• New Policy Hydro power policy to promote private
  sector participation in development of captive
  power generation through hydro electric projects
  -- 28-11-2002
• Captive power generation allowed for 25 MW
• Wheeling and banking allowed
• 3rd party sale allowed

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Solar / Wave Power Plant Policy
Government of Maharashtra announced policy for
New Technology 9-07-1999 The incentives are
exactly similar to Waste to Energy projects
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Policy on Stand Alone Systems

• Systems
• Solar Thermal, Solar Photovoltaic, Biomass
• Devices, Solar Wind Hybrid as per MNES policy
• Compulsion of Solar Water heaters announced by
• few Municipal corporations
• Circular issued by UDD instructing Municipal
• Corporation to use solar systems.
• GoM issued GR 08-10-2005 for Zilla Parishads
• and Panchayat Samitis to include Energy
• Development as new subjects in schedules.

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• URJANKUR
• NIDHI

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URJANKUR NIDHIGR -- 21-01-2006

• Green Energy funds created by charging
• Rs 0.04 per unit
• Charges to commercial and industrial units
• only for 10 years starting 2004-05
• Rs 100 crores per year collection
  estimated
• The fund to be used for renewable energy
  projects
• Part of it (Rs 418 crores) to be used to
  create Urjankur Nidhi for attractive larger
  investments from open market

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Objectives of the Fund

• Assistance in Project Development
• Creation of a frame work for replicating
  sucessful projects
• Providing Risk Capital, Debt, Credit Enhancement
• Leveraging the available capital to attract
  further investment in the sector
• Targeted Project investment mobilization Rs
  2800 crores
• Targeted Power Generation capacity up to 1000
  MW
• Attracting professional management

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Urjankur Nidhi

• Approval of Cabinet
• The Energy Fund named as Urjankur Nidhi has
  been set up to develop projects in the
  non-conventional energy sector
• Appointment of Investment Manager for the Fund
  for a management
• Approve the transfer of Rs. 218 crores from Green
  Cess Fund

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Urjankur Nidhi

• Approval of Cabinet (contd..)
• Approve the transfer of Rs. 100 crores in the
  first year (2005-06), Rs.100 in the second year
  (2006-07) and Rs. 18 crores in the third year
  (2007-08) from the Green Cess being collected,
• Nominate Hon. Minister Non-conventional Energy
  Sources, as ex-officio Chairman of the trust.
  Principal Secretary (Energy), Principal Secretary
  (Finance) and Director General, MEDA as
  ex-officio Trustees.
• Allow selected fund to (a) nominate 3 Trustees
  from Banks/ FIs and (b) nominate two experts in
  this field.

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RENEWABLE ENERGY COMPREHENSIVE POLICY
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Renewable Energy Comprehensive Policy
Government of Maharashtra declared the GR
8/12/2005 for the development of Non Conventional
Energy Sources in Maharashtra.
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Renewable Energy Comprehensive Policy

• Highlights
• Plantation of Jatropha/ Karanj for Biodiesel
• - Establishment of Biofuel Park
• - 3,00,000 hec waste land will be made
  available
• for plantation
• - 60 of above land to be leased on nominal
  rent
• for 30 years to govt/ semi govt office etc
• - 40 above land to be leased for 30 years to
  
• private parties.
• - MEDA will establish shops for collection of
• seeds at district level.
• - 2000 acres land near Pune to be provided to
• MEDA

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Renewable Energy Comprehensive Policy

• Tribal Land to be provided on lease for Wind
• power projects
• - Tribal land available for private investors
• - Tribals to be suitably compensated
• - Ownership protected for tribals.
• Small/ Mini hydro at KT-Wier, waterfall, canal
• Carbon Development Mechanism (CDM)

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Renewable Energy Comprehensive Policy

• Highlights
• Availability of Land for New Technology Projects
  
• such as Power generation from waves,
• geothermal
• Power generation from Waste
• 15 amount to be reserved in annual budget for
  
• development of Non Conventional and Energy
• Conservation Projects by Zilla Parishads and
• Municipal Corporations

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Renewable Energy Comprehensive Policy

• Formation of Steering committee to review the
  
• development of renewable energy work in
  
• Maharashtra State as per policy
• 5 of budgeted loan amount to be reserved for
• Non Conventional Energy/ Energy Conservation
  
• projects by cooperative banks.
• Inclusion of RE as a subject in school education
• Certificate course in polytechnic and ITI
  syllabus

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• Renewable Purchase Obligation
• MOU with PFC
• MEDA ready to support

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Thank You