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Bihar policy for promotion of new and renewable energy sources 2011

Date of issue

14  June 2011

Title of policy document

Bihar Policy for Promotion of New and Renewable Energy Sources 2011

Nodal agency

Bihar Renewable Energy Development Agency (BREDA), except for small/ micro/ mini hydro projects, for which Bihar State Hydro Power Corporation (BSHPC) shall be the nodal agency.

Capacity target and period

Valid for 5 years from the date of notification

Offtake arrangement

Power Purchase Agreement (PPA)

Yes, executed between project developer and Bihar State Electricity Board (BSEB)

Use for captive

Yes. Allowed. If excess power of more than 1 MW is available, can be sold to State grid/BSEB.

Sale to third party

Sell to third party/utilize generated power at the place of generation or at any other place for captive use, through BSEB network on payment of applicable Open Access charge,  surcharges and additional surcharge or any other charges as approved/notified by Bihar Electricity Regulatory Commission (BERC).

Grid interfacing

Biomass Power Producer (BPP)

BPP shall necessarily offer to supply to BSEB/Distribution Licensee a minimum of 25% of power generated from the biomass or renewable energy (RE) projects. For captive projects, however, the acceptance of such offer for supply of power shall be at the sole discretion of BSEB/Distribution Licensee.

In case BPP proposes to sell full or part of its generation to the grid or use the grid for wheeling power to third parties, BPP will design the system at own cost, such that interfacing with the State grid/ BSEB grid is done as per the latter’s specifications and requirements/Indian Electricity Grid Code/Bihar Grid Code, as amended from time to time.

The capital cost of the transmission system for evacuation of power to the nearest State/BSEB grid/substation (including all metering and the protective instruments) shall be borne by BSEB, provided the developer offers to supply at least 50% generation, subject to a minimum of 2 MW. Else, this entire cost shall be borne by the developer.

Registration of projects

BREDA is the nodal agency for evaluation and recommendation of the application for biomass projects.

BPP shall be required to submit the application to State Investment Promotion Board (SIPB), Department of Industries, Government of Bihar along with a pre-feasibility report, applicable processing fee and site details.

Time schedule and penalty provisions

Completion time

24 months from commissioning

Incentives by State Government

Electricity duty

Exempted from electricity duty

Identification and assistance for selection of sites

BREDA will provide necessary information and assistance regarding identification and selection of feasible sites.

Octroi/ Entry tax

Entry tax on new and RE sources, devices, equipment, and machinery shall be exempted.

Land allotment

In case of Government land in industrial area, it may be leased in accordance with Government of Bihar policy for the allotment of land.

In case of private land, BPP may directly purchase the land from the owner of the land.

Applicability for biomass based projects

In order to ensure availability of biomass and sustainability of commissioned projects with aggregate capacity of more than 2 MW, SIPB shall not approve any other biomass based project within a radial distance of 25 Km from the approved project.

The project developer shall carry out biomass assessment in the region before finalizing the capacity of the project and submitting the proposal for approval to SIPB.

The following shall be applicable to projects approved before this policy came into operation.

  • All projects have to submit a progress report and the current status of the project to

  • Projects which have not made any significant progress shall be reviewed by the nodal
        agency and the recommendation for continuance or cancellation shall be provided
        to SIPB with the objective of allowing other serious promoters in that area to set-up
        biomass based projects.

  • Among the approved projects, if there is a conflict of area regarding biomass, which
        may affect the sustainability of the project, suitable measures will be taken by SIPB
        based on the progress made in the project.
  • Contact details

    Bihar Renewable Energy Development Agency
    3 Floor, Sone Bhavan
    Birchand Patel Marg
    Patna - 800 001
    Tel:  0612 250 7734
    Fax: 0612 250 6572

    Policy document


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