Madhya Pradesh has released a fresh solar policy with several attractive features for the investors after the previous one expired last year. The government also approved four solar energy parks with capacity of generating 200 MW power each under public-private partnership model.
The new policy grants four per cent subsidy by the state under wheeling charges, besides 10-year exemption in electricity fee, cess and banking of power generated and exemption as per VAT rules and entry tax.
Madhya Pradesh gets abundant sunshine and has given clearance for commissioning 297-MW capacity solar power projects so far. It also boasts of the biggest solar power project in the country with a generating capacity of 130 MW power to be set up in Neemuch district.
The policy divides solar projects in to four categories. The first category is of the projects selected on the basis of open tender by Madhya Pradesh State Power Distribution Company or Madhya Pradesh State Power Management Company. The second category includes those who will sell power through free purchase and free access within or outside the state. The third category will deal with renewable energy certificate while projects under fourth category will be set up as a part of Jawaharlal Nehru National Solar Mission (JNNSM).