According to reports, the Ministry of New and Renewable Energy (MNRE) is providing Central Financial Assistance (CFA) for setting up of renewable energy based power generation projects in the country.
A statement issued by the union government states that with a view to develop new technologies and to bring down prices, MNRE has a comprehensive scheme to support Research and Development (R&D) in all areas of renewable energy (RE). It provides financial support for the R&D projects taken up by National Research Institutions, Academic Institutions & Universities, Autonomous bodies and Industry. Apart from supporting basic research, the Ministry also supports design, development, field demonstration and performance evaluation of RE systems/devices.
Emphasis is laid on involvement of industry with research institutions for commercialization of RE products and systems. MNRE also provides core support to strengthen R&D in renewable energy Sector to the institutions/organizations. MNRE has established Specialized Centers namely National Institute of Solar Energy (NISE), Centre for Wind Energy Technology (C-WET), National Institute of Renewable Energy (NIRE) and Alternate Hydro Energy Center (AHEC) for carrying out research, development and testing in Solar, Wind, Bio-energy and Small Hydro Power technologies respectively.The government has been encouraging the setting up of solar power plants for feeding power to grid, with fiscal / financial incentives available under MNRE schemes (including JNNSM), backed by facilitating policies of state governments. PSUs are also eligible to set up such plants under these schemes.