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Maharashtra
Comprehensive Policy for Grid-connected Power Projects based on New and Renewable (Non-conventional) Energy Sources - 2015

Date of issue

20 July 2015

Title of policy document

Comprehensive Policy for Grid-connected Power Projects based
on New and Renewable (Non-conventional) Energy Sources - 2015

Nodal agency

Maharashtra Energy Development Agency (MEDA)

Capacity target and period

1,000 MW – cogeneration projects
300 MW - biomass power projects

Offtake arrangement

Power Purchase Agreement (PPA)

Yes

Use for captive

Yes. However, it will be necessary for BPP to sell the power primarily to distribution licensee in the state to fulfil the renewable purchase obligation (RPO) at the preferential tariff fixed by Maharashtra Electricity Regulatory Commission (MERC)

Sale to third party

Grid interfacing

Biomass Power Producer (BPP)

BPP will undertake the erection of High Voltage (HV), Low Voltage (LV) and Extra High Voltage (EHV) substations and transmission and distribution lines as per the technical specifications and estimate approved by Maharashtra State Electricity Transmission Company Limited (MSETCL)/Maharashtra State Electricity Distribution Company Limited (MSEDCL) and under the supervision of MSEDCL/MSETCL.

This evacuation system would include the strengthening or changes in the existing substations and transmission and distribution lines.

BPP will transfer the evacuation arrangement to MSETCL/MSEDCL after commissioning of the project. The maintenance of the project will also be undertaken by MSETCL/MSEDCL.

Evacuation arrangements

MEDA and MSETCL/MSEDCL will jointly undertake the survey of LV, HV and EHV substations.

Expenditure on evacuation system payable by financial assistance from the green cess fund will be the amount as per the estimate approved by MSEDCL/MSETCL or as per the actual expenditure on evacuation arrangement, whichever is less, will be treated as evacuation expenditure. MEDA will reimburse upto a maximum of Rs 1 crore per project for expenses on the evacuation arrangement from Green Cess Fund.

Registration of projects

NA

Time schedule and penalty provisions

The projects which got infrastructure clearance dated 14-10-2008 but not commissioned yet should be commissioned within two years from the date of this policy, to avail the benefits under the policy dated 14-10-2008.

The projects which are commissioned before 01-04-2015 but not obtained infrastructure clearance from MEDA vide Government Resolution dated 14-10-2008 and 14-7-2010 will be required to obtain infrastructure clearance within six months from the date of this policy to avail the benefits under the earlier policies. The projects failing to do in the stipulated time will not be eligible for any incentives under this and earlier policies.

Incentives by State Government

Electricity duty

BPP using electricity for captive purpose, electricity duty will not be levied for the first 10 years under this policy.

Capital subsidy

For bagasse and biomass cogeneration projects, the capital subsidy is Rs 1 crore per project.
The capital subsidy will be given only after the commissioning certificate is issued from MSEDCL and upon submission of certificate in respect of transmission of electricity from MSETCL / MSEDCL.

Incentives

The incentives under this policy will be applicable to the projects which obtain clearance from MEDA from 01-04-2015 onwards and which get commissioned.

Purchase tax on sugarcane

Exemption from tax on sugarcane purchase is as mentioned in Government Resolution no. Bagasse-2013/C.R.165/Energy-7 dated 31.01.2014 will be applicable to the project established under this policy.
The limit of exported surplus grid-electricity will be minimum 3 MW or more for availing exemption in tax on sugarcane purchase.

Rural employment under the policy

The biomass projects implemented under the policy will provide the rural employment by recruiting 80% of unskilled workers and 50% of semi-skilled workers from the gram panchayat area, where the plant will be located. The policy also specifies the employment to one of the members from the family who provide land for biomass projects.

Benefit to society

BPP will utilise the 2% of the total profit from biomass project in social benefits in local gram panchayat area such as water supply schemes, health services, establishment of schools & non-conventional energy applications.

Contact details

Maharashtra Energy Development Agency
MHADA Commercial Complex, II floor
Opposite Tridal Nagar, Yerwada
Pune 411 006
Tel: 020 2661 4393 / 020 2661 4403 
Fax: 020 2661 5031 
Email: dg@mahaurja.com 
Website: www.mahaurja.com

Policy document

Policy

* NA - Not Applicable
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