Central power utilities such as the NTPC and NHPC are likely to be made to pick up the tab for the first 1,000 mw of solar power capacity that is set to come up by 2013 in India under the National Solar Mission (NSM).
This will ensure a “painless and extra-budgetary” mechanism for meeting the bill for the incentives that need to be doled out to encourage the industry to take up solar power generation in the country, said a ministry of new and renewable energy (MNRE), official who did not want to be named.
The central utilities, which, in turn, sell the power to state utilities, can average off the price of solar power with conventional power resulting in minimal increase in per unit cost thereby making solar power less pinching on consumer, said the source.
The New and Renewable Energy Minister Farooq Abdullah confirmed on Wednesday the National Solar Mission (NSM), will be cleared by the Union Cabinet on Thursday and have a “nice” formal launch on Friday.
The NSM, seeks to have an installed solar generation capacity of 20,000 mw by 2020-22 in the country with 1,000 mw, which will be eligible for central government incentives, sought to be put in place by 2013.
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