The "Development of Solar Parks and Ultra Mega Solar Park Projects" scheme has been extended by the Union Ministry of New and Renewable Energy through FY26. According to a notice from the government, the extension would not have any further budgetary consequences. March 2024 was the intended expiration date for the plan.
The programme was launched in December 2014 with the goal of assisting states and union territories in establishing solar parks at various sites across the nation in order to provide the necessary infrastructure for the development of solar power plants.
A solar park is a sizable plot of land that has been constructed with amenities including transmission infrastructure, roads, water, drainage, and communication networks, among others, and has received all necessary statutory approvals.
For the purpose of preparing the detailed project report (DPR), the ministry under the programme offers central financial assistance (CFA) of up to Rs. 25 lakh per solar park. Additionally, upon meeting the milestones outlined in the scheme, CFA up to 20 lakh per MW or 30% of the project cost, including grid-connectivity cost, is paid.
The extension occurs as solar park construction makes only modest progress. Union Minister for New and Renewable Energy (MNRE) RK Singh had stated in response to a question in the Lok Sabha in March that as of February 2023, only nine of the 57 solar parks with a combined capacity of 39.28 GW were entirely built and another eight were only half complete.
"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 the Great Indian Bustard (GIB) issue, regulatory challenges like the SERCs' refusal to approve solar tariff, etc.
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