Solar Parks are becoming increasingly popular & MNRE is leaving no stone unturned to make them a success. The ppt mentions the nuts & bolts of the Solar Park Scheme of MNRE.

1. Ministry of New and Renewable Energy
19/03/2015
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2.  Hon’ble Finance Minister, inter-alia, announced as
under:
“New & Renewable Energy deserves a very high priority. It
is proposed to take up Ultra Mega Solar Power Projects in
Rajasthan, Gujarat, Tamil Nadu, and Laddakh in J&K. I
have set aside a sum of Rs. 500 crores for this. We are
launching a scheme for solar power driven agricultural
pump sets and water pumping stations for energizing one
lakh pumps. I propose to allocate a sum of Rs. 400 crores
for this purpose. An additional Rs. 100 crores is set aside
for the development of 1 MW Solar Parks on the banks of
canals. Implementation of the Green Energy Corridor
Project will be accelerated in the financial year to facilitate
evacuation of renewable energy across the country.”
Budget Announcement 2014-15
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3. Bird’s Eye view of Charanka Solar Power
Project, Gujarat

4.  Solar power park: Is a large chunk of land developed for setting up of a
number of solar power projects wherein the solar power developers will be
made available land which is free from statutory clearances with common
infrastructure facility such as water, transmission lines, roads, drainage,
communication network etc. in place.
This is on the lines of Charanka Solar Power Project in the state of Gujarat.
 Ultra Mega Solar Power Projects:
 Ultra Mega Solar Power project is a single power project with capacity of
over 500 MW. These projects may be set up in some of these Solar
Parks.
 The projects may be bid out after developing the park or simultaneously
with park developments. In some cases full park may be one Ultra Mega
Project.
 In such cases the J.V. set up to develop the Ultra Mega Solar Projects
may become the implementing agency also.
Concept of Solar Power Park and Ultra
Mega Solar Power Project
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5. A1 A2 A3 A4 A5 A6
POOLING STATION
66KV
AC
AC AC AC
Solar Park
POOLING STATION
66KV
POOLING STATION
66KV
AC AC
B1 B3
SUB-STATION 220KV/400KV
TRANSFORMER
A & B= Solar
Projects
AC to Grid
B2 B4 B6B5
Schematic Representation of Solar Park
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6.  Setting up of 25 Solar Parks and Ultra Mega Solar Power Projects, each with a
capacity of 500 MW and above, thereby targeting 20,000 MW of solar power
installed capacity.
 Duration: Span of 5 years starting from 2014-15
 Eligibility:
 All the states and Union territories are eligible for benefits under the
scheme.
 Capacity of Solar Park:
 500 MW and above.
 Smaller parks in Himalayan & other hilly States where contiguous land
may be difficult to acquire in view of the difficult terrain will also be
considered.
 Smaller parks may also be considered in States where there is acute
shortage of non-agricultural lands.
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7. • Implementation Agency:
 MNRE’s Nodal Agency - Solar Energy Corporation of India (SECI) on
behalf of Government of India (G0I). SECI to handle funds to be
made available under the scheme on behalf of GOI.
 The states, to designate an agency for the development of solar
parks to be developed in following three modes:
 Mode 1: The State designated nodal agency undertakes the development
& management of the solar park. This agency could be a State
Government Public Sector Undertaking (PSU) or a Special Purpose Vehicle
(SPV) of the State Government.
 Mode 2: A JV Company is set up between State designated nodal agency
and SECI for the development & management of solar park with 50%
equity from SECI and 50% equity from the State Government Agency
(State Government may also allow more than one agency provided total
equity from State Government remains 50%).
 Mode 3: The State designates SECI as the nodal agency and SECI
undertakes the development and management of solar park on behalf of
State Government on mutually agreed terms.
 Mode 4: Private entrepreneurs promote solar parks without any equity
participation from SECI, but may have equity participation from the State
Government or its agencies.
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8.  Activities to be undertaken by the Implementation Agency or
SPV:
 Develop, plan, execute, implement, finance, operate and maintain the
Solar Power Park.
 Identify potential site and to acquire/possess land at potential sites for
Solar Power Park.
 Carry out site related studies/investigations.
 Obtain statutory & non statutory clearances and to make area
development plan within Solar Power Park.
 Design a plan for sharing development cost between the developers and
the park.
 Create necessary infrastructure like water, transmission lines, roads,
drainage etc. to facilitate Solar Power Project developer for faster
implementation of Solar Power Projects.
 Frame out transparent plot allotment policy and specify procedures
pursuant to the relevant State policies and their amendments thereof.
 Provide directives for technology-specific land requirements.
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9.  Engage the services of national/global experts/consultants to promote
Solar Power Park related activities.
 Facilitate the State Government to establish educational
institutions/training facilities within Solar Power Park for development
of manpower skill related to Solar Power.
 Any other activities related to Solar Power Park as per the directives
from MNRE and the State Government.
 Environmental clearances before allocating the land to prospective
developers.
Note: All infrastructural requirements outside the park such
as connecting road, provision of water supply, construction
electricity, etc. to make the park functional, will be the sole
responsibility of the concern State Government.
Contd...
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10. Financial model:
 Allotment price of plot:
 The implementing agency will sell/lease out the plots to prospective
project developers. Lease period of 30 years or as per State land
policy.
 The Allotment Price per metre square (inclusive of all applicable taxes,
duties, cess etc.) payable by the plot applicant for the applications
must be specified in a transparent manner.
 The allotment price will be reviewed annually and an annual increment
may also be specified.
Registration for the plot:
Suggested Recovery Pattern:
 A one-time registration fee (per project or per MW) will be collected
by inviting applications from the prospective buyers when the scheme
is finalized, land identified and marked.
 An advance will be collected from the prospective buyers when 50% of
the land is acquired. This advance will be 10% of the sale price or
lease amount.
 Another instalment of 25% of the price of land or lease amount may
be taken when full land is acquired.
 Further instalments may be collected while plot are being developed.
Final 15% of the price of land or lease amount may be collected at the
time of allotment of the plot to the buyer.
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11. Self sustenance of the Implementation Agency:
 The surplus money that will accrue from the sale may be converted
into equity of promoters so that the implementing agency gets a
financial strength for long term sustenance.
 The implementation agency may put in some of its own equity and
can raise loans, depending on the availability of funds and
requirement.
 The subsidy of MNRE under the scheme would bring down the cost
of the project to that extent.
 The SPV will also create a small corpus fund to ensure upkeep and
maintenance in the future, which may be supplemented with some
annual charges.
Land acquisition / site selection:
 Land for the setting up of the solar park will be identified and made
available by the State Government.
 States to identify sites receiving good solar radiation and sites which
are closer to CTU (i.e. Power Grid), preferably locations with spare
solar installed capacity and water availability.
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12. Power Purchase arrangement:
The selected solar power developer for solar park, shall enter
into Power Purchase Agreements (PPAs) with the beneficiary of
solar power, viz. the State Utilities/ Discoms who are willing to
buy power under any State Scheme, or go for any third party
sale.
State Government’s Obligation to purchase power:
 State Government to buy power through its Discom at least
20% of the power produced.
 Preference to such states which agree to buy higher
percentage of power.
 Connectivity with CTU systems to be ensured in case State
refuses to buy power. State to waive off wheeling charges.
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13. Transmission and Evacuation:
 The Implementing Agency to construct few 66KV Pooling stations
and draw transmission lines from Pooling stations to Sub-
stations. CTU/STU to construct 220KV/400KV Sub-station.
 SPD to draw transmission lines from respective project to the
Pooling station.
 STU to create Sub-station nearby Solar Park if substantial power
is purchased by State Government otherwise CTU shall make
transmission arrangements for dispatch of power to load centres.
 If the cost of transmission/evacuation infrastructure is high,
separate proposal for funding through NCEF/External
Funds/Green Corridor Project would be necessary.
Power to remove difficulties
 If there is need for any amendment to the Scheme for
implementational problems, MNRE will be competent to make
such amendments with the approval of Minister-in-charge.
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14. MNRE Support:
 Grant upto Rs. 25 lakhs for preparing DPR, conducting surveys etc.
 Grant at the rate of up to Rs.20 lakhs/MW or 30% of the project cost
including Grid-connectivity cost, whichever is lower, which will be
released as per the following timelines:
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S. No. Milestone % of subsidy
disbursed
1 Date of issue of administrative
approval
5%
2 Land acquisition (50% land
acquired)
20%
3 Transmission plan finalization
(internal and external)
10%
4 75% of Land acquisition and start
of work on transmission
20%
5 Remaining to be disbursed
based on progress and
requirements of funds
35%
6 Final Instalment 10%

15. S. No. Milestone Timelines
1 Date of issue of
administrative approval
Zero Date
2 Land acquisition and
Financial Closure
6 months from zero
date
3 Construction of Pooling
Substation, Land
Development and other
Common facilities as per
DPR
15 months from
zero date
4 Transmission line and Grid
Connectivity
18 months from
zero date
5 Final instalment on
completion
18 months from
zero date

16. S.
No.
State Capacity of Solar Park
(approx..)
Land Identified at Area of Land
(approx..)
1 Gujarat 700 MW Taluka- Vav, Distt.-Banaskantha 1407 hectares
2 Madhya Pradesh Two parks each with
capacity 750 MW
Rewa-Distt.
+
Neemuch & Agar
1400 hectares
1400 hectares
3 Telangana 1000 MW Mehboob Nagar-Distt. 2189 hectares
4 Andhra Pradesh Two parks with capacities
1500 MW & 1000 MW
Anantpur & Kadapa Dist.
+
Kurnool Dist
5628 hectares
5 Karnataka 2000 MW Tumkur Dist 3000 acres
6 Uttar Pradesh 600 MW Jalaun, Sonbhadra, Allahabad &
Mirzapur Dists.
1038 hectares
7 Meghalaya 20 MW West & East Jaintia Hill Dists. 27 Hectares
8 Punjab Two parks each with
capacity 500 MW
Patiala, Fatehgarh Sahib, Ludhiana
& Gurudaspur
5285 Heatares
9 Rajasthan Three parks with capacities
700 MW, 1000 MW &
1000 MW
Bhadla Phase II, Bhadla Phase III
and Jaisalmer Phase I
5400 hectares
10 Tamil Nadu 500 MW Ramanathapuram Dist. 568 Hectares
11 Total 12,520 MW

17. 16

18.  The Total Cost of Solar PV Project in a Solar Park considered is Rs.7.00 Cr/MW
(CERC- Rs.6.91 Cr/MW for FY 2014-15)
 Percentage of Land, Evacuation Cost and Development Cost Out of this total
cost is-
 Land Cost - 2%
 Evacuation Cost - 10%
 Development Cost - 8%
◦ Total Cost - 20%
 The average cost of Solar Park per MW comes to around 20% of total cost, i.e.
Rs.1.4 Cr/MW (20% of Rs.7.00 Cr/MW = Rs.1.4 Cr/MW).
 State Government to arrange land and also make part development of Solar
Park like Roads and other Infrastructure, which comes to around Rs.0.45
Cr/MW.
 The remaining part of Solar Park is mainly the Evacuation Cost and part
development, which works out to around Rs.0.95 Cr/MW.
(Rs.1.4 Cr/MW – Rs.0.45 Cr/MW = Rs.0.95 Cr/MW)

19. Particulars Cost (Rs. In
Cr.)
% of the
Project Cost
Land 0 0.0%
Site Development 87.75 12.5%
- Roads (40 km 30m wide @1.2 Cr./km) 36
-Roads (30 km 15m wide @0.95 Cr/km) 19
-Land levelling/grading etc. (5 million cu.m.@ Rs. 35/ cu.m) 22.75
-Water Supply System 10
Power Infrastructure within Solar Park 230 32.8%
-33 kV substation (4*300 MVA @ 33/Cr/S/s plus 80 km cabling
between projects)
200
-Power Infrastructure – 220 kV 30
Building and Establishment 10 1.4%
Sub Total-A 327.75
Power Infrastructure from Solar Parks to CTU (400/220 kV s/s) 320 45.7%
Preliminary Exp. @ 3% of Sub Total-A 9.8325 1.4%
IEDC and Contingency @ 3% of Sub Total-A 9.8325 1.4%
IDC @ 10% of Sub Total-A 32.775 4.7%
Project Cost Total 700 100.0%