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Implementation of pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops - 2014

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Nodal Agency

Ministry of New and Renewable Energy 

Applicable Technologies

Grid-connected solar PV power plants on canal banks and canal tops (of minimum 1 MW and maximum 10 MW capacities). 

Policy Period

12th Five Year Plan  

Target under Policy

Capacity addition of 100 MW in demonstration mode and project mode. 

Incentive Amount

Solar Energy Corporation of India will handle funds under the scheme, on behalf of  GoI.

  • Canal-top SPV projects – Rs.3 crore/MW or 30% of the project cost, whichever is lower.

  • Canal-bank SPV projects – Rs.1.5 crore/MW or 30% of the project cost, whichever is lower.


Release of Incentives

  • 40% on project sanction (Day 0).

  • 60% on successful commissioning of the project (15 months).

Eligibility Conditions

  • State power generation companies/state government utilities/any other state government organizations/PSUs/GoI PSUs or GoI organizations operating in the power sector or who own canal irrigation systems.
  • Proposals from states in project mode.

Additional Information

The implementing agency will enter into a long term (25 years) tie-up with concerned state irrigation dept./relevant organizations for utilization of canal-tops/banks for setting up power plants and PPA with State Utility/DISCOM for evacuation and purchase of power generated from their plants at tariffs mutually agreed or as fixed by the SERC. 

Evacuation Arrangement

  • Transmission interconnection with STU or any other transmission utility at voltage level of 33 kV or above.
  • Interconnection with DISCOM network accepted in case DISCOM is the ultimate buyer of the entire quantity of power.


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