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Chhattisgarh
Policy directives on incentives to units generating power from non-conventional energy sources 2002

Date of issue

8 April 2002

Title of policy document

Policy Directives on Incentives to Units Generating Power from Non-Conventional Energy Sources

Nodal agency

Chhattisgarh Renewable Energy Development Agency (CREDA)

Capacity target and period

NA

Offtake arrangement

Power Purchase Agreement (PPA)

Yes. Chhattisgarh State Electricity Board (CSEB) may purchase the power generated by these units as per requirement.

Use for captive

There will be no restrictions on generation capacity. The parties may use the power generated themselves at the point of generation or at any other place or sell it to a third party after obtaining permission from CSEB.

For sale of power to a third party, the rates will have to be settled mutually between the producer and the third party which would purchase the power.

Sale to third party

Grid interfacing

Biomass Power Producer (BPP)

BPP will install the transmission/distribution lines and transformers required for transmitting power from biomass power plant to the nearest grid substation of CSEB and also equipment required for synchronizing, protection etc. as per specifications of CSEB, or these can be installed by CSEB at the cost of the producer. These lines/equipment will be maintained by CSEB, but the producer will be required to pay operation and maintenance charges as fixed by CSEB, from time to time.


BPP will install the meters and equipment required for the sale of power as per the cost and points decided by CSEB. These meters and components will have to be duly approved and tested by CSEB.


If the power producer takes reactive power from CSEB, he will be required to pay reactive power charges to CSEB.


If power producer requires start up power for operation and maintenance of the power plant, he will have to pay double the charges of CSEB for 33 kV two part tariff.

Wheeling charges

Wheeling through CSEB's transmission/distribution system will be allowed on payment of wheeling charges to CSEB at rates fixed by CSEB from time to time.

The wheeling charges will be irrespective of the distance to which the power is wheeled.

Registration of projects

For setting up biomass power plant, application needs to be sent to Chief Executive Officer (CEO), CREDA with a copy to Secretary, CSEB. After approval by CEO, CREDA, the generating unit and also the user unit will be required to enter into agreements with CSEB.

Time schedule and penalty provisions

Completion time

24 months from commissioning

Incentives by State Government

Electricity duty

Electricity generated sold to third party or consumed by the party itself will be exempted from electricity duty for five years if capacity of power plant is below 10 MW. If capacity of the power plant is 10 MW or above, exemption will be for three years only.

Industrial grant

Yes

Octroi/ Entry tax

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

Land allotment

  • In case of Government land, it will be leased out to the producer as per the norms of
        Industries Department, Government of Chhattisgarh.

  • In case of nonavailability of Government land, private land will be acquired by the
       Government and made available to the producer at acquisition cost. No service charges
       will be payable for use of the land.

  • Permission will not be required for diversion of the land.

  • Producer will have to submit information regarding use of land to the concerned
        District Collector.
  • Contact details

    Chhattisgarh State Renewable Energy Development Agency
    Department of Energy, Government of Chhattisgarh
    2 Floor, CSERC building
    Shanti Nagar, Raipur
    Tel: 0771 4019225
    Fax: 0771 4268389
    Email: info@creda.in
    Website: www.creda.in

    Policy document

    Policy

    * NA - Not Applicable
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