Concessions also include exemption from electricity duty and demand cut of 50 per cent of the installed capacity. Units that start production before December 31, 2010 can avail these concessions.
Talking to mediapersons, state energy minister Saurabh Patel said, "Today solar power is very costly, but it needs to be developed urgently in view depleting conventional sources of energy and their highly-fluctuating costs. This policy has been proposed to plan out things for the next decade."
Though the capital cost for setting up a solar photovoltic solar plant is Rs 20 crore per MW and Rs 15 crore for thermal solar plant, Patel said, "These concessions will enable top companies to do cost-effective research and development in Kutch, Banaskantha, Jamnagar and Bhavnagar for alternative sources of energy. A lot of these companies have already explored possibilities of setting up solar plants."
Under the policy, a maximum of 500 MW project will be allowed for installation, while minimum installed capacity of any project will be five MW. Any company or entity will be allowed to set up the solar power project for either captive use or for selling of electricity.
However, no fossil fuel will be allowed to be used in the power generation process in the project.
"The state's policy is particularly radical since the Centre's cap for solar power projects in India is 50 MW, while Gujarat has put a cap of 500 MW 10 times more than the Centre. Rajasthan has also announced a policy with a cap of 50 MW," a senior official added.
Source- Times of India