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Karnataka renewable energy policy 2009-2014

Date of issue

23 December 2009

Title of policy document

Karnataka Renewable Energy Policy 2009-2014

Nodal agency

Karnataka Renewable Energy Development Ltd (KREDL)

Capacity target and period

300 MW from biomass and 281 MW from cogeneration by 2014

Offtake arrangement

Power Purchase Agreement (PPA)

PPA between the power producers and Karnataka Energy Regulatory Commission (KERC)

Grid interfacing

Biomass Power Producer (BPP)

Cost of transmission lines from the project site to the substation as per grid norms.

Transmission company

Karnataka Power Transmission Corporation (KPTCL) will undertake the augmentation of transmission lines and lying of new lines and receiving stations as required.

Time schedule / penalty provisions

It is mandatory for the developer to complete the project in all respect and commission the project with grid synchronization within a period of 3 years from the date of the statutory clearances. KREDL will endeavour to issue all required statutory clearances within 6 months period.

Incentives by State Government


The various concessions and incentives allowed by the Ministry of New and Renewable Energy (MNRE) will  ipso-facto continue under the State Government.

Demand cut exemption

Maximum 50% of the installed capacity assigned for captive use purpose.

Industrial grant

Generation of electricity from renewable energy (RE) sources will be treated as ‘industry’ under the provisions of the Industrial Policy 2009 and incentives available to industrial units under such schemes will also be extended to the RE power projects.

Land allotment

KREDL will sublease developed land to the developers for a period of 30 years, after which the lease may be given for a period of five years subject to fulfilment of conditions stipulated by the Government.

Government land: Barren Government land is reserved, as per the industrial planning for industrial use, at declared RE sites. 10% of such land will be kept at the disposal of KREDL for developing the RE power projects.

Private land: KREDL will make arrangements to purchase land from suitable private land directly from the owners of the land, as per section 79(a), 79(b) and 80 of the Karnataka Land Reforms Act.

Stamp duty

Various agreements by developer will be considered for revision of registration fee under the relevant provisions of Karnataka Stamps and Registration Act by suitable amendment.

Value Added Tax (VAT)

VAT applicable on various RE equipment and instruments will be considered for suitable revision under the provisions of Karnataka State Sales Act.

Wheeling and transmission charges

Wheeling charges at 5% will be applicable, subject to the KERC norms.

Single window clearance

A State Level Empowered Committee with the Chief Secretary, Government of Karnataka as Chairman will provide single window clearance.

Open access regulation

Allowed, subject to availability of adequate transmission facility to any transmission licensee’s system within the State on payment of various charges as specified.

Other promotional schemes

Akshaya Shakthi Nidhi Green Energy fund will be established. The funds will be administered by KREDL for promotion of RE, particularly in Public Private Participation (PPP) mode, and decentralized generation and distribution of RE projects for the benefit of rural sector. The funds may also be utilized for land acquisition and land development activity for RE projects.

KREDL will facilitate Clean Development Mechanism (CDM) benefits.

Contact details

Karnataka Renewable Energy Development Ltd (KREDL)

No. 39, Shanthigruha, Bharath Scouts and Guides Building
Palace Road, Bangalore 560 001
Tel: 080 2220 7851 / 080 2220 8109
Fax: 080 2225 7399

Policy document


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Last updated on: May 20, 2016