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J & K Solar Policy - 2013

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Nodal Agency

Jammu and Kashmir Energy Development Agency (JAKEDA)

Applicable Technologies

Solar PV based

Policy Period

-Until superseded or modified by another policy

Policy Review

Possible mid-term review after 3 years or as need arises


Applicable as per JKSERC regulations, amended from time to time

Eligibility Conditions

  •  Private sector entities, central power utilities, state governments or any other government entity and their joint ventures.
  • Innovative projects combining latest technologies as standalone or with solar powerplants, completely owned by private parties/companies.


Developer shall pass on benefits to the licensee with whom PPA is signed, as per CERC regulations


Meters shall be sealed at the interconnection point with state grid, by developer and power development departments, and accounting shall be done at 00:00 hrs on the last day of the month.

Evacuation Arrangement

Developer shall be responsible for evacuation facilities up to interconnection point. In remote areas it shall be in accordance with policy of GoI.




Self-Identification  of Project Sites

  • Shall be fully permissibleand the Nodal Agency shall proceed to examine the feasibility of the site for setting up a solar project and determine the optimum power potential that can be harnessed.
  • Swiss challenge method shall be adopted with the first right of refusal given to the party which has identified the project.
  • Each case for grant of lease of govt. land to the entrepreneurs shall be referred to the Revenue Department for accordance with the relevant norms.

Incentives to the Power Developer

  • No entry tax will be levied by the state on power generation/transmission equipment and building material used for solar power plants.
  • Govt. land, if required for power projects, shall be acquired by JAKEDA for the developer and leased to him on payment of premium/rentals determined by the government till expiry of concession period.
  • In case of non-availability of govt. land, land shall be arranged by Independent power producer or developer for Science & Technology Department/JAKEDA/LREDA/KREDA and will be leased out to the IPP at token rate decided by IPP.
  • In case of forest land, the state will facilitate permission for use under J&K Forest Conservation Act. The compensation to be paid by the entity, includes the amount required for net present value, compensatory afforestation, etc..
  • No royalty will becharged.
  • IPPs will be granted exemption from court fee for registration of documents related to lease of land.
  • Electricity generated from SPPs for captive consumption/third party sale shall be liable to pay 4 paisa/per unit as per J&K Electricity Duty Act, 1964.
  • Exemption from demand cut,upto 50% of installed capacity of the SPPs, assigned for captive use, shall be permitted.

Schedule of Implementation

  • The IPP shall be responsible for providing and submitting all documents to the concerned authorities within l2 months from the date of allotment.
  • The IPP shall achieve financial closure within three months from the date of receipt of all statutory approvals and clearances given by the state and central governments. Financial closure would imply firm commitments for financing the entire project, with all pre-disbursement conditions being fulfilled.
  •  The Project shall be completed and made operational within 24 months after receiving all statutory clearances.
  • The entity shall deposit, upfront, premium to the nodal agency on the basis of advertised capacity within one month from the date of allotment of site. Additional upfront premium, if any, based on upward revision at DPR stage, shall be paid within one month of accord of approval.

Registration Fees/ Wheeling charges

  • For sale of power within or outside the state, transmission/wheeling charges shall be applicable as per JKSERC/CERC regulations.
  •  Facility of banking for captive use/third party sale shall be provided for a period of two months. 

Open Access

  • Infrastructure facilities of PDD, as available, shall be given to the developer for wheeling and transmitting energy.

  • For supply of power, the State T&D network can be used by developer for which open access charges, T&D losses will be applicable as per JKSERC regulations.

  •  T&D losses for intrastate wheeling/transmission, will beas per JKSERC regulations. Beyond state transmission network CERC regulations shall apply for respective charges. 

Provision for Policy Review

Mid-term review after a period of 3 years or as and when need arises. 



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