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home >> programmes >> state-wise >> policy
State policy on renewable sources 2006

Date of issue

12 September 2006

Title of policy document

State Policy on Renewable Sources

Nodal agency

Manipur Renewable Energy Development Agency (MANIREDA)

Capacity target and period


Offtake arrangement

Power Purchase Agreement (PPA)

Yes. Minimum period of 20 years. 
If eligible producer intends to enter into PPA for shorter period, the request can be considered by Power Department, Government of Manipur.

Use for captive

Yes, on mutually agreed price.

Sale to third party

Grid interfacing

Biomass Power Producer (BPP)

Developer to install the interfacing equipment (transformers, panels, kiosk, protection, metering, high tension lines etc.) as required from the point of generation to the nearest high tension lines. The maintenance of the equipment will also be done by the developer as per the specifications and requirements of the State Government.

If developer requests Power Department for installation and maintenance of the equipment, the producer will pay the entire cost to the latter, at charges decided by the Department.

BPP will install two separate meters, one for importing power from the grid and another for exporting power to the grid, on the High Transmission side at own cost. The meters and metering boxes will be sealed by the Power Department, Government of Manipur.

The power producer will install necessary current limiting devices such as Thyristors in the generating equipment. Capacitors of sufficient rating will also be provided in the equipment to ensure that the power factor is always maintained above 0.80.

Transmission and augmentation

Power Department, Government of Manipur to augment the substation capacity at 33/11/kV or higher levels, at its cost, to receive the power generated by the producer. The department will also undertake at its cost augmentation of transmission lines, if required.

Wheeling charges

Power Department to transmit on its grid the power generated by the producer and make it available to the power producer for captive use or to a third party nominated by the power producer for sale within the State, at a uniform wheeling charge of 2% of the energy fed to the grid, irrespective of the distance from the generating station.
However, the third party will have to be a high transmission consumer of the power unless this condition is relaxed specifically by the Power Department.


Power Department to permit electricity generated by producers to be banked for a period upon one year.

Registration of projects

  • Developer intending to install electricity generation plants using non-conventional
        energy sources to submit applications for setting up such projects and for grid
        interfacing to MANIREDA/Power Department, Government of Manipur.

  • MANIREDA/Power Department of Manipur will provide clearance at the earliest
        possible date.

  • An agreement will be entered into with the applicant within a period of one month from
        the date of such clearance.

  • If the applicant does not take effective steps (i.e. at least 10% of the total project cost is
        not incurred within six months) to implement the project, the agreement could be
        terminated by Power Department, Government of Manipur / MANIREDA and the site
        allotted to another applicant.
  • Facilities by MANIREDA

    MANIREDA shall facilitate clearance of projects for producing electricity from non-conventional sources at the state and central levels on the line of facilitation provided by Bureau of Industrial Promotion (BIP). MANIREDA shall also facilitate grant of loans for projects by Indian Renewable Energy Development Agency (IREDA) and subsidies by the Ministry of New and Renewable Energy (MNRE).

    Single window clearance


    Role of State Developer Advisory Council (SLAC)

    A State Level Advisory Council headed by the Chief Secretary as Chairman, and the Chairman of MANIREDA as Vice-Chairman will be constituted. The function of SLAC will be to monitor the progress of generation of electricity through non-conventional energy sources, undertake review of the policy, to aid and advise the State Nodal Agency to make necessary changes, etc.

    Incentives by State Government

    Electricity duty

    Electricity generated sold to third party or consumed for captive use will be exempted from electricity duty for five years from the Commercial Operation Date (COD).

    Industrial grant

    Yes. The power producers will be treated as eligible industry under the schemes administered by Industry Department and shall be entitled to incentives available under industrial units. Concessions to industrial units in backward areas will also be available to power producers. Infrastructural facilities such as approach road, water supply, power during construction period etc. will be provided on the line of provisions of such facilities to other industrial units if such generation plant is set up in an industrial estate by the State Government.

    Sales tax

    Sales tax exemption/sales tax order deferment under the provision of schemes notified in this respect by Finance Department, as modified from time to time.

    Tax on renewable energy devices and spare parts

    Applicable as notified by Finance Department vide their Notification No.5/17/99-FD (TAX) Pt dated 8 May 2001 may continue by making partial modification of their order vide Notification No. 5/6/2002-PD(TAX) Pt dated 23-12- 2005 under SI. No. 131

    Land allotment


    Water availability for renewable energy projects

    Power producer will be allowed to use water for power generation, wherever possible. The cost of modification(s) required, if any, will be done by the Irrigation Department at the cost of the producer. The Irrigation Department will consider charging royalty for use of such water at a rate not exceeding 10% of the prevailing electricity tariff for electricity consumer.

    Contact details

    Manipur Renewable Energy Development Agency
    SAI Complex Takyel
    Imphal 795 001
    Tel: 0385 222 2685

    Policy document


    * NA - Not Applicable
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