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Financial Incentives for Small Hydro

 

Incentives from the Government of India  

Sl. No.

Programme/Scheme

Amount of Subsidy

1

Capital Subsidy for Small Hydro Projects upto 3MW Station capacity in North East States.

Up to Rs. 3 Crores /MW or 50% of the cost of the project, whichever is lower.

2

Capital Subsidy for Small Hydro Projects upto 100 KW capacity, for Hilly region, N.E., and A&N Islands for projects executed by Government Deptt., Agencies, NGOs, Local Bodies.

@ Rs. 15,000/-per KW.

3

Interest Subsidy for Small Hydro Power Projects upto 3 MW station capacity in the Hilly region, N.E. region and A&N Island.

5% interest subsidy upto Capitalized amount of Rs. 1.12 Crores per MW

4

Interest Subsidy for Small Hydro Power Projects upto 3 MW station capacity for other areas.

Interest Subsidy for Small Hydro Power Projects upto 3 MW station capacity for other areas.

5

Renovation/Modernization and capacity up-rating of SHP station upto 3 MW capacity.

@ 75% of the R&M cost upto Rs.2.00 crore per MW.

6

Assistance for Detailed Survey and Investigation

100% of the cost Subject to a maximum of Rs. 1.5 lakh per site.

7

Assistance for DPR Preparation

50% of the cost subject to a maximum of Rs. 1 lakh per DPR.

8

Subsidy for development and upgradation of Water Mills

 

a. Mechanical Output only

a. Upto Rs.30,000/- or 75% of actual cost

 

b. Mechanical and electrical output

b. Upto Rs.60,000/- or 75% of actual cost

Incentives from the State Government

  Waiver of water royalty: The state government has waived the levy of water royalty on small hydro projects with a generating capacity upto 20 MW.

  Wheeling and banking facility: KPTCL has permitted banking of electricity produced by small hydro projects at 2% of the month-end balance of energy banked as is the case of wind. The wheeling charges are different and depend on the generation capacity of the power plant. The wheeling charge is 2% upto 1MW generation capacity, 5% in respect of generation capacity exceeding 1MW but less than 3 MW and 10% for capacity exceeding 3MW but less than 20MW.

  Others: Other facilities and incentives noted in the section on wind are common to all non-conventional energy projects.

More Details Visit Http://www.mnes.nic.in