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Draft policy for promoting generation of electricity through new and renewable energy sources

Title of policy document

Draft policy for promoting generation of electricity through new and renewable energy sources

Nodal agency

Tripura Renewable Energy Development Agency (TREDA)

Capacity target and period


Offtake arrangement

Power Purchase Agreement (PPA)

Yes. Minimum for 10 years.
However, if any eligible producer intends to enter into PPA for shorter period, Department to consider such proposal on merit.

Use for captive


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 Power Department / Tripura State Electricity Company Limited (TSECL).

If developer requests Department / TSECL for installation and maintenance of the equipment, the producer will pay the entire cost on mutually agreed charges.

Transmission and augmentation

Power Department to augment the substation capacity at 33/ 11 kV or higher levels at its cost to receive the power generated.

Power Department, Government of Tripura / TSECL to undertake, at its cost, augmentation of transmission lines, if required.

BPP has to install the line equipment as required for grid connectivity and meters as per the prevailing rules and regulations of the Department.

In case of decentralized power generation, Power Department /TSECL to undertake, at its cost, construction of required local transmission and distribution (T & D) lines, if the same do not exist in the locality.

BPP has to pay the wheeling charges to the Department/TSECL for using such T &D lines.

In case of technical problem for synchronizing with grid, BPP has to distribute energy locally as stand-alone source, as authorized by Department.

Wheeling charges

Wheeling charge as decided mutually by the concerned authorities or at 2% of the energy supplied to the grid.

Banking charges

TSECL, TREDA or the Power Department to permit electricity generated to be banked for a period of about one financial year.

If the banked energy is not utilized by BPP within one month of the end of the concerned financial year, the same will be treated as purchased by TSECL/TREDA or the Power Department, as the case may be, and will be settled at the rate specified in the PPA.

Registration of projects

TREDA invites offers for suitable sites/projects for development in private sector.
Project approval committee to scrutinize the offers and submit to the Government with recommendations/comments.
State Government of Tripura to give final decision on the selection/award of the projects.
Decision on selection/award of the project to be communicated to the producers normally within 3 months from the date of receipt of the proposal, but, in no case the period to exceed 6 months.
TREDA/Power Department and BPP to enter into necessary agreement within one month of approval/award of the project.

Security deposits

BPP has to deposit an amount equal to 2.5% of the estimated cost of the project as security deposit to the Power Department within one month after approval of the project. Deposit will be released on successful commissioning of the project within the time frame.

Time schedule and penalty provisions

Sanctioned projects to be completed and commissioned within a period of 12 to 18 months, from the date of issue of formal sanction/approval. If the producer fails to maintain this time frame without sufficient and appropriate reasons, the approval/sanction to be cancelled and all facilities extended to the eligible producer to be withdrawn. Also, security deposit to be forfeited.

Incentives by state Government


Electricity duty

Exempted for its captive use or upon sale to a nominated third party.

Industrial grant

Yes. If the project is located within industrial areas/estates/growth centres/parks, infrastructural facilities such as approach road, water supply, power during construction period, etc. to be provided.

Demand cut

In case producer is not utilizing Power Department’s grid for supply of power to the consumers, a reduction in contract demand will be provided, maximum up to 30% of installed capacity of the power plants, to the producer.

Central Government

Action to be taken as per existing framework for processing of applications received for various incentives under “North East Industrial and Incentive Promotion Policy (NEIIP), 2007”.

Sales tax

Renewable energy (RE) equipment and materials shall be exempted from State sales tax / VAT or other state levies. Alternately, sales tax/VAT paid by the producer on RE equipment and materials to be suitably reimbursed to the producer.

Land allotment

Government land: On lease as per the existing government rules and regulations, subject to its availability.
Private land: If BPP purchases private or agricultural land, land conversion for nonagricultural purpose is allowed.
Forest Land: To be considered by the State Forest Department under the existing provisions of Forest Conservation Act.

Fuel/Raw material

Use of conventional fuel be allowed for biomass based projects in the event of reduced biomass availability, but the usage will be limited to 30% on the basis of the criteria applicable for efficient dual-fuel biomass based power plants as finalized by the Department.

Contact details

Tripura Renewable Energy Development Agency
Vigyan Bhawan, II floor, Pandit Nehru Complex
West Tripura, Agartala – 799 006
Phone: 0381 232 5900

Policy document


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Last updated on: May 20, 2016