MNRE Extends Deadline For Solar Park Scheme Upto 2025-26

The Ministry of New and Renewable Energy (MNRE) has now issued an official notification, ordering an extension in the deadline for developing solar parks under the Solar Park Scheme and ultra mega solar power projects in the country.

The new order from the ministry said that the deadline had been extended till March 31, 2026, without any additional financial implication. The ministry had earlier issued guidelines for the solar park scheme on March 21, 2017. Later further notifications on the issue were also issued in 2018 and 2021. 

MNRE gives several incentives for starting solar parks. Photo by-Chevanon/Freepik

Earlier, the deadline for developing solar parks and ultra mega solar power projects was up to 2024. It comes after there was a slow deployment of such projects on a large scale. The MNRE has also admitted it before its recent statement before the Lok Sabha.

The ministry claims that it approved 57 Solar Parks with an aggregate capacity of 39.28 GW as of February 28, 2023. Out of these Solar Parks, nine were fully complete, and an additional eight were partially complete, with a cumulative capacity of 10,117 MW solar projects commissioned in these parks. The ministry claimed that after successful bidding for the setting up of solar projects, 14 Solar Parks were delayed.

“The reasons for the delay in establishing Solar Parks include challenges in the acquisition of clear land, mismatch in timelines between solar projects and power evacuation infrastructure, environmental issues like Great Indian Bustard (GIB) issue, regulatory challenges like non-approval of solar tariff by SERCs, etc,” the minister had told the Parliament in a written reply. 

As per the norms, all State Government Organizations and PSUs are eligible to set up Solar Parks. Most Solar Parks are being taken up by State Government organizations and PSUs, though. 

The ministry also gives several types of incentives for setting up such projects like Rs.20 lakhs/MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, or a Central Financial Incentive of Rs 25.00 lakh per park for DPR preparation of solar parks, conducting surveys among others.