Applicability of the Policy and exclusions
- All renewable energy technology-based projects, (except projects specifically excluded in this Policy) shall be eligible for benefits under this Policy. Renewable energy technology-based projects
- All eligible renewable energy technology-based projects generating any form of energy, as may be defined in this Policy shall be entitled to avail the benefits prescribed under this Policy or Scheme(s) formulated under this Policy;
- To avail benefit and incentives provided under this Policy, projects need to be registered with NRE
- This Policy shall be applicable for all renewable energy technology-based projects of capacity equal to or more than 500 kW, unless capacity specified otherwise
Incentives For RE developers
Following incentives shall be available for projects registered under this Policy
- a) Exemption in Electricity Duty and Energy Development Cess:
As per the provisions of Madhya Pradesh Vidyut Shulk Adhiniyam, 2012, projects shall be entitled to receive hundred percent (100%) exemption from payment of Electricity Duty on generation of electrical energy for a period of ten (10) years from the date of COD;
ii. No energy development cess shall be payable on the power supplied by renewable energy projects for a period of ten (10) years from the COD. - b) Reimbursement of Stamp Duty
50% reimbursement on stamp duty on purchase of private land for the project shall be available to developers. - c) Government Land on concessional rate:
Government land, if available, shall be provided on concessional rate (rebate of 50% on circle rate) to developers. - d) Waiver of wheeling charges:
Facility of wheeling will be available to all RE power projects through MPPTCL/ MP Discoms, as case may be, as per wheeling charges specified by MPERC. 50% waiver on wheeling charges shall be applicable or as may be approved by Madhya Pradesh Electricity Regulatory Commission from time to time. This waiver shall be applicable for 5 years from COD. - e) Carbon credits or any other similar incentives, which are available for such projects, can be availed by developers, as per the guidelines issued by the concerned authorities from time to time or as per the provisions of arrangement between developers and procurer/ user.
Incentive of RE equipment manufacturers
The incentives shall be available to all manufacturers, based on the investment size, from start-ups to multinationals, from component designers to system developers, using a host of new technologies from Artificial Intelligence to Information Technology to advance the design and development of RE projects. To foster the concept of green manufacturing, RE equipment manufacturers will be encouraged to use RE power for manufacturing activities.
8.2. The RE equipment manufacturing shall be categorized as “Industry”.
8.3. RE equipment manufacturing units shall be eligible to avail the following benefits:
Investment size < Rs. 50 Cr. | Investment size => Rs. 50 Cr. |
Eligible to avail general incentives as per respective policy of Industry/MSME Department based on investment size. | Eligible to avail special incentives earmarked for RE Equipment Manufacturing Sector under Industrial Promotion Policy. |
Additional Incentives for Production of Green Hydrogen
- a) Basic Investment Promotion as per IPP 2025:
Basic Investment Promotion Assistance shall be limited to a maximum of ₹200 Crores provided in 7 equal annual installments. - b) Infrastructure Development Assistance:
Units shall be eligible for 50% assistance for developing power, water, gas pipeline, road, drainage, and sewage infrastructure up to the factory gate, subject to a maximum of ₹5 Crores if the investor acquires private land or gets undeveloped Government land for setting up the unit. - c) Green Industrialisation Assistance:
50% assistance, up to ₹5 Crores for waste management systems (ETP, STP, pollution control devices), and up to ₹10 Crores for ETP with Zero Liquid Discharge, in 2 equal annual installments. - d) IPR Assistance:
100% reimbursement of expenses incurred for filing patents, copyrights, trademarks, and geographical indications (GI), up to a maximum of ₹10 Lakh per unit for the first 5 years. - e) CCIP Customized Package:
Mega Industrial Units with an investment of more than ₹500 Crores in this sector shall be eligible to avail customized package under CCIP.
