PATTERN OF CENTRAL FINANCIAL ASSISTANCE (CFA) FOR 2005-06 REMOTE VILLAGE ELECTRIFICATION PROGRAMME

I. Electrification through SPV Systems

Model I and Model II of solar systems as specified hereunder would only be eligible for support. For proposal involving other models, Central Financial Assistance (CFA) would be calculated on the basis of actual prices or a maximum of those given below whichever is lower.

SPV System   General category States Special Category State
Solar Home System Model I 18 W Module , 1 light Rs.6050 Rs.6124
Solar Home System Model 2 37 W Module, 2 lights Rs.9950 Rs.10700
Solar Street lighting System   Rs.19800 Rs.21090
Power Plants with Distribution Lines with 10 years CMC 2.5 kWp Rs.812500 Rs.962424
5 kWp Rs.1432480 Rs.1554252
10 kWp Rs.3123800 Rs.3458376
25 kWp Rs.7135000 Rs.7721000

The CFA is based on the cost which includes supply of the system at the site installation, commissioning and Comprehensive Maintenance Contract (CMC) for five years for home lighting systems including replacement guarantee for parts and components such as battery, electronic, lamps, etc. For Pv modules, the replacement guarantee is for ten years.

II. Electrification through Small Projects.

Region Upto 100 KW Above 100 KW & upto 999 KW
For N.E. Region Sikkim , J & K.H. P. and Uttaranchal CFA & 90% of the project cost. The CFA to be calculated at actual cost or a maximum of the amounts given below, whichever is lower.  
Rs. 60,000/- KW Rs. 60 lakhs + Rs. 43250/KW
Notified hilly regions of other States & Island CFA & 90% of the Project cost. The CFA to be calculated at actual cost or a maximum of the amounts given below whichever is lower.  
Rs. 60,000/- KW Rs. 60 lakhs + Rs. 43250/KW
Plain & other regions of all other States CFA & 90% of the Project cost. The CFA to be calculated at actual cost or a maximum of the amounts given below whichever is lower.  
  Rs. 45,000/- KW Rs. 45 lakhs + Rs. 29250/KW

III. Electrification through Biomass Gasifier Projects.

CFA in the form of capital subsidy on pro-rate basis to the extent 90% of the cost of Rs. 15 lakhs for a basis packages for a 5KW project covering biomass gasifier system, housing and local distribution with the balance to be met by State Agency, Panchayat, beneficiaries, etc. A average size of 50KW has been considered with unit size of 25KW capacity, modular upto 100 KW, and a special rating of 10KW. For cluster of villages, projects upto 1MW can be considered.

Additional Rs. 1.50 lakh per 50KW plant to be provided for regular availability of biomass, including collection, processing and storage and operation and maintenance, including AMC for 5 years after the warrantee period. In addition, for internal wiring, beneficiary will be provided micro-credit facility for three points @ Rs. 1500/- per household.

One-time funding of upto Rs. 5.0 lakhs Rs. 5.0 lakhs to be provided to gasifier manufacturers/suppliers for establishing service centers in area where cluster of systems, minimum 10, are set up.

Financial Assistance for Electrification of Remote Unelectrified Census Villages

7. Pattern of Release of Funds

Release of the Central Financial Assistance for approved projects will be made as per the following pattern:-

  • Initial release alongwith the sanction order (provided Utilization Certificate (UC) for the previous years’ releases have been received) - 50% of the CFA
  • Second installment on supply of equipment at site - 20% of the CFA
  • Final installment after commissioning and one month of satisfactory operation - 30% of the CFA

Audited Statement of Expenditure (SOE) and UC should be provided by the implementing agency along with a certificate for electrification of the remote village having been successfully carried out as per the Sanction Order/DPR norms by the local administration at district / village level, after ascertaining from the beneficiaries, before release of the final installment. A confirmation from the State Power Department / State Electricity Board the agency responsible for village electrification, to the effect that the census villages has been included in the list of electrified villages of the State, would also be necessary before the final installment is released.