PolicyforPowerGenerationthroughNew&RenewableEnergySourcesin

Andaman&Nicobar(A&NIslands)Islands

PREAMBLE:
TheAndaman&NicobarIslandshaveconsiderablepotentialforpowergeneration
through New & Renewable Source of Energy which is yet to be harnessed. The
CentralGovernmenthasformulatedanddeclaredtheNationalElectricityPolicyand
TariffPolicyundertheprovisionsatClause5.12,Sec3oftheElectricityAct,2003.
Both the policies provide for measures to undertake the development of power
projectsthroughRenewableEnergySources.

TheMinistryofNewandRenewableEnergySources(MNRE),GovernmentofIndia
has formulateda legal, financialand administrative framework for promotion of
investment in this sector and has advised the State Governments to formulate
policiesthereunder.

This policy is framed in the light of the State Development Report, 2006 for
Andaman&NicobarIslandsinordertotapthepotentialforRenewableEnergyin
A&N Islands the Electricity Department, A&N Islands has formulated this policy
guidelines to provide greater thrust to promote and develop renewable energy
technologiesandapplications.

1.TITLE&ENFORCEMENT:
ThispolicywillbeknownasAndaman&NicobarRenewableEnergyPolicy2012.This
policy willcomeinto operation with effectfrom thedate ofitspublicationin the
officialgazetteofA&NAdmn.andwillremaininforcetill2017oruntilsuperseded
ormodified.A&NAdmn.reservestherighttoamend,relaxorinterruptanyofthe
provisionsunderthispolicy.Forgivingeffecttothispolicy,necessaryamendments
invariousenactments,wherevernecessary,shallbeexpeditiouslyundertakenbythe
departmentconcerned.

1. ThispolicywillbeknownasPolicyforPromotingGenerationofElectricity
throughNew&RenewableSourcesofEnergyinA&NIslands.
2. AllActs,RulesandRegulations,TariffPolicy,GuidelinesofGOI,A&NAdmn.,
ElectricityRegulatoryCommissionandotherGovernmentauthoritieswillbe
applicableandfollowed.

Contd..2/

2.NODALAGENCY
The Electricity Department, A&N Administration will be the nodalagency for the
implementation of New and Renewable Sources of Energy (NRSE) policies. The
ElectricityDepartment,A&NAdministrationwillberesponsibleforlayingdownthe
procedureforinvitingofproposalsfromPrivatePowerProducers,DPR,evaluationof
project proposals, project approvals, project implementation and operation &
monitoring.

3.OBJECTIVESANDSTRATEGIES
ThemainobjectiveoftheNewandRenewableEnergyPolicyofA&NIslandsare:
To reduce dependents on conventionalsources of power generation,
especiallyfromDieselPowergeneration.
Development,propagationandpromotionofRenewableEnergySources
andTechnologies.
Development of Ecofriendly Projects and Harnessing of Natural
ResourcestoavailGreenPower.
Accelerationofidentification,developmentandimplementationofNew
& Renewable Energy Projects with the longterm objective of
substitutingallconventionalsourceofenergy.
Encourage the industries with cogeneration potential to set up
cogenerationplantsofRenewableEnergyexpeditiously.
Decentralize and micro level power generation through renewable
energy sources to provide energy supply to agriculture, industries,
commercialandhouseholdsector.
ProvisionofSingleWindowservicefortechnicalconsultation,sources
offinanceandprojectclearance.
Creation of suitable environment for private sector participation in
RenewableEnergyPowerGeneration.
To establish linkages with national and international institutions for
active collaboration in development, demonstration and
commercializationofnewandemergingRenewableEnergytechnologies.
To take concretesteps for energyconservation, energy efficiencyand
cleandevelopmentmechanism.
ExploringofNaturalResourcestoavailcheaperpower.
Generationofemployment.

Contd..3/

4.TARGETS
ThePowerGenerationinA&NIslandsislargelythroughDieselfuelwhichaccounts
for94%ofthetotalpowergenerationwhileremaining6%isthroughHydelandSolar
power generation. The A&N Administrationintends toachieveatleast25% of the
totalpowergenerationthroughNewandRenewableSourcesofEnergybytheendof
2017.

5.ELECTRICITYACT,2003
(A)Determinationoftariff
Section62(1):TheAppropriateCommissionshalldeterminethetariffinaccordance
withtheprovisionsofthisActfor
(a) Supplyofelectricitybyageneratingcompanytoadistributionlicensee:
ProvidedthattheAppropriateCommissionmay,incaseofshortageofsupplyof
electricity,fixtheminimumandmaximumceilingoftariffforsaleorpurchase
ofelectricityinpursuanceofanagreement,enteredintobetweenagenerating
companyandalicenseeorbetweenlicensees,foraperiodnotexceedingone
yeartoensurereasonablepricesofelectricity.

Section63:Determinationoftariffbybiddingprocess:
Notwithstandinganythingcontainedinsection62,theAppropriateCommission
shalladopt the tariffifsuch tariffhas beendetermined through transparent
process of bidding in accordance with the guidelines issued by the Central
Government.

Section86.(1):TheStateCommissionshalldischargethefollowingfunctions:
(e)promotecogenerationandgenerationofelectricityfromrenewablesources
ofenergybyprovidingsuitablemeasuresforconnectivitywiththegridandsale
of electricity from such sources, a percentage of the total consumption of
electricityintheareaofadistributionlicensee;
(B) NationalElectricityPolicy2005:
The National Electricity Policy2005stipulates that progressively theshareof
electricity from nonconventionalsources would need to be increased; such
purchase by distribution companies shall be through competitive bidding
process; considering the fact that it will take some time before non
conventional technologies compete, in terms of cost, with conventional
sources,thecommissionmaydetermineanappropriatedeferentialinpricesto
promotethesetechnologies.

Contd..4/

(C) TariffPolicy2006:
TheTariffPolicyannouncedinJanuary,2006hasthefollowingprovisions:
Pursuant to provisions of section 86 (1) (e) of the Act, the Appropriate
Commissionshallfixaminimumpercentageforpurchaseofenergyfromsuch
sourcestakingintoaccountavailabilityofsuchresourcesintheregionandits
impactonretailtariffs.Suchpercentagesforpurchaseofenergyshouldbe
madeapplicableforthetariffstobedeterminedbytheSERCs.
It will take some time before nonconventional technologiescancompete
with conventional sources in terms of cost of electricity. Therefore,
procurement by distributioncompaniesshallbe doneat preferential tariffs
determinedbytheAppropriateCommission.
 SuchprocurementbyDistributionLicenseesforfuturerequirementsshallbe
done,asfaraspossible,throughcompetitivebiddingprocessunderSection
63 of the Act within suppliers offering energy from same type of non
conventionalsources. In thelongterm, these technologies would need to
competewithothersourcesintermsoffullcosts.

6.BRIEFONELECTRICITYDEPARTMENT,A&NADMINISTRATION
In the heart of Bay of Bengal lies a cluster of scattered Islands is known as
Andaman & Nicobar Islands (A&N Islands). These Islands form along broken
chainliesbetween92 Oto94 OEastLongitudeand6 Oto14 ONorthLatitude.The
locationoftheseIslandsarestrategicallyimportantontheeasternsideofIndia
from the view point of defence. With the generous assistance of Central
GovernmenttheseIslandshavetakealargestrideonallrounddevelopmentsin
last few decades, which resulted in the tempo of socio economic
transformation.Toachievetheabovegoal,theenergyinputwillbeavitalfactor.
AndamanandNicobarIslands:
The A&N Islands havea totalarea of 8249sq.kms. out of which the
forestcoverisabout7589sq.kms.(92%). TheseIslands enjoya thick
forest, rich environment, abundant sea wealth, which boost a high
tourist attraction. These Islands are divided in three district viz.
Andaman, Nicobar and North & Middle Andaman. The seat of the
AdministrationisatPortBlair(SouthAndaman)inwhich14.14sq.kms.
areaisunderthejurisdictionofPortBlairMunicipalCouncil.
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5

PastHistoryOnPower:
PriortoIndependenceasmallsteamdrivenreciprocatingDGgenerator
of100KWcapacitywasinstalledbytheBritishatRossIslandin1926.
Direct currentDG Setsof100KWcapacity wasinstalledatPort Blair
during1929.Afterindependencetwosteamturbinegeneratingsetsof
550 KW each were established during 1951 in the Power House at
ChathamIsland.Theboilerswereoperatedonwoodfuelandsawdust,
which were the waste products of Chatham Saw Mill and later on
switchedovertoMangroveWoodwhichwasusedasfuel.Thiswasthe
startofthealternatingcurrentpowersupplyatPortBlair.

DuetothegeographicalandtopographicalpeculiaritiesoftheseIslands,
including separation by sea over great distances, there is no single
power grid forall the electrified Islandsand insteada power house
catersindependentlytothepowerrequirementsofanarea/Island.

The Electricity Department is operating & maintaining power
generation, transmission &distributionsystemandnetworksin these
 Islands for providing electric powersupply to general publicandalso
implementsvariousschemesunderPlanandNonPlanProgrammes
foraugmentationofthedieselgeneratingcapacityandestablishment
ofnewPowerHousesandT&Dsystems.Thisdepartmentalsofunctions
asaNodalAgencyforimplementingRenewableEnergyProgrammeof
the Ministry of New & Renewable Energy Sources. The Electricity
DepartmentisheadedbyaSuperintendingEngineerandassistedby7
Executive Engineers and 38 Assistant Engineers. The present total
installedcapacityisaround83.83MWwithapeakdemandof44.7MW.
The installedcapacity of the Power Housesrangesbetween 6KW to
5000KW.OneHydroElectricPowerStationhavingacapacityof5.25
MWisfunctioningatKalpongRiver,NorthAndaman.A20MWDiesel
PowerStationatBambooflat,SouthAndamanisbeingoperatedbyM/s
SPCLonPPAbasis.South,Middle&NorthAndamanarewellconnected
by VHFcommunication forbetter monitoring &faultrectification for
improvedservicestotheconsumers.

Contd..6/

PowerscenarioinA&NIslands
Sector:Power

Thesalientfeaturesaboutdevelopmentofelectricpowersupplyinthese
Islandsduringlast57yearsistabulatedbelow:

Year PowerHousesTotalCapacity Generation Percapita

(Nos.) (MW) (MU) consumption
(Kwh)
1951 1 1.1 0.5 16
1961 1 1.1 1.6 20
1971 10 3.0 4.3 27
1981 16 7.5 10.8 41
1991 32 15.7 51.9 113
2001 34 44.0 118.6 250
2006 34 66.90 183.70 309
2008 41 68.50 200.60 385
2011 43 83.71 241.38 492

The Power Generationin A & N Islandsislargely through Diesel fuel,
which accounts for 95% out of total generation, rest 5% being Hydel
 generation. In a diesel generation scenario the major cost of power
generationis the fuelcost which works out toaround80% of the total
cost.TheillustrationsgivenbelowgiveadetailingofthecostofHSDat
variousIslandsandthespecificfuelconsumptionofthevariouspowers
plantsofaparticularyear.Thereare43DieselPowerHousesatdifferent
locationsintheseIslandshavingDGcapacityrangingfrom6KWto5000
KW(including20MWIPP)andoneHydroPowerStationhaving5.25MW
capacityatKalpong.Theaggregateinstalledcapacityis83.83MW(2010
11).ThedetailsofpowerscenarioinmajorIslandsaretabulatedbelow:

Contd..7/

PowersupplysystemgenerationcapacityinmajorIslands:

Sl. NameofIsland Installed Consumer Annual Peak

No. Capacity Generation Demand
(MW) (Nos.) (MU) (MW)
1. NorthAndaman 7.618 8713 10.53 2.70

2. MiddleAndaman 10.548 14151 22.30 5.05

(a) LongIsland 0.892 305 0.50 0.12

(b) Baratang 0.512 1190 0.33 0.20

3. SouthAndaman 43.77 57869 179.60 30.11

(a) NeilIsland 0.634 665 1.05 0.27

(b) Havelock 1.33 1281 3.64 0.79

4. LittleAndaman 6.65 5546 8.28 1.81

5. CarNicobar 5.92 4186 6.91 1.83

6. NancowryGroup
3.275 2964 4.41 1.08
ofIslands

7. GreatNicobar 2.706 2198 4.35 0.75

Total 83.833 99068 241.90 44.71

Contd..8/

Consumers

ThecategorywiseunitconsumptionandthenumberofconsumerofA&N
Islandsaretabulatedasbelow:

Consumer Consumption
Sl.No. Category Nos.
(%) (%)
(a) Domestic 81741 82.50 48.24

(b) NonDomestic 15078 15.22 27

(c) Industrial 457 0.46 4.61

(d) Other&BulkSupply 1287 1.31 15.25

StreetLights 505 0.51 4.90

GrandTotal: 99068 100.00 100

TheroundtheclockpowersupplythroughDGSetsisprovidedtoconsumersin
the Islands at South Andaman, Middle Andaman, Long Island, Neil Island,
Havelock,LittleAndaman,CarNicobar,Katchal,Kamorta&CampbellBay,which
account for about 85% of totalpopulation. At otherlocations covering10%
population electric powersupplyisavailable for5 to16 hrs. per day through
small DGPower Houses & Solar Power Plants& Home Lightingsystems. 4%
populationneednottobeelectrifiedduetoEncroachedForestAreaasperthe
directivesofSupremeCourtofIndia.Remaining1%populationisprogrammed
forelectrificationbyMarch,2012.

AspersurveyconductedbytheNationalSampleSurveyOrganization,Govt.of
India between July, 2002 & December, 2002 on availability of various
infrastructure/resources,itisreportedthat95%ofvillagesinA&NIslandshave
accessibilitytoelectricityagainstanallIndiaaverageofonly78%.

 The present percapita consumptionisaround385KWhasagainsta National

Averageof598KWh;duetoverylessindustrialrequirementintheIslands.

Contd..9/

9
SubSector:NRSE

TheGovt.ofIndiaemphasizestheneedtomaximizetheutilizationofNew&
Renewable Energy Sources, especially in remote & inaccessible areas, for
meeting the basic energy requirement of lighting, cooking & heating etc.
Keeping in view the govt. policy to exploit/utilize more and more new &
renewablesourcesofenergy,theAdministrationisimplementingschemeunder
New & Renewable Energy to utilize the potentialof Biomass, Wind, Solar &
Mini/MicroHydroavailableintheIslands.

ThrustAreas

Biomass:
TheTataEnergyResearchInstitute(TERI),NewDelhiestimatedduring1987
that5MWpowercouldbedevelopedbyBiomasstechnology.Anotherstudy
wasconductedbyKarnatakaStateCouncilofScienceandTechnologyduring
1998 which indicated that around 1200 KW of power potential could be
harvested by exploiting available biomass at different Islands. As per the
studyconductedbyInstituteofEnergyStudies,AnnaUniversity,Chennaiin
October 2007, the estimated potential available for agro based power
generationatSouthAndaman,LittleAndamanandCarNicobarare5MW,2
MWand1.5MWrespectively.Darashaw&Co.Pvt.Ltd.,Pune,theconsultant
during 2010 in consultation with Agriculture Department of A&N Admn.
concluded that as per the available data of Biomass Residue, the power
generationatSouthAndaman,LittleAndamanandCarNicobarcanbe2MW,
1.5MWand2MWrespectively.Actionhasbeeninitiatedforinstallationof
BiomassbasedPowerPlantintheaboveplacesaccordingly.Biogasplantfor
domesticuseisalsoprovidedonsubsidizedratetovillagershavingmorethan
threecattles.

SolarPhotovoltaicSystem(SPV)
TheA&Nislandsareinthemoderatesolarintensityzoneduetolongperiods
ofrainandcloudcover.Twogridconnectedsolarpowerplantsof50KWp
capacity at Neil Island and Havlock Island were established through M/s
BHEL,Bangaloreduring2002and2004.Theyarepresentlynonoperational
for conversionof theabove plants from GridStand Alone(GSA)system to
GridControlledInverter(GCI)system.

 Contd..10/

10

The National Thermal Power Corporation (NTPC)and the A&N Admn. has
signed a Memorandum of Understanding (MoU) to establish 6MW Solar
PowerPlantinAndamanIslands.TheMOUhasbeensignedforconducting
feasibilitystudyaswellaspreparationofDPRforestablishmentof5MWSolar
Power Plant in South Andaman and 1MW Solar Power Plant in Middle
Andaman.Thejoborderforestablishmentof5MWpSPVpowerplanthas
alreadybeenawarded to M/S Photon Energy System Pvt Ltd Hydrabadby
NTPCduringDec2011.Theprojectisexpectedtobecompletedbyyear2013.
Solar devices like Solar Home Lighting System, Solar Street Light, Solar
Lantern,SolarWaterHeater,SolarCookeretc.arealsodistributedtogeneral
publiconsubsidizedrates.

OceanThermalEnergyConversion(OTEC)Systems
The Ocean Thermal Energy Conversion System utilizes the heated surface
waterand cold water froma depth ofaround1000 Mtrs.In the Tropical
Oceanfordrivingspecialturbinesforgenerationofelectricpower.TheOcean
EnergyCentreofIIT,Chennaihadconductedafeasibilitystudyduring1984
forestablishingofOTECSystemintheseIslandsandhadidentifiedthreevery
attractive locations for shore /off shore based plants, which could be
harnessed. TheOTECplant,inaddition toproviding electric power, would
alsobesourceofAquaCultureandRefrigeration.

TheDepartmentofOceanDevelopment(DOD),NewDelhiwasalsorequested
to explore the possibilityof establishingasuitable capacityOTEC plantin
theseIslands.ItisunderstoodthatDODisestablishinga1MWOTECplant
offshore Tamilnadu. An OTEC plantcould be establishedin theseIslands,
evenasa R&Dscheme, which willalsosupplement to dieselgenerationin
theseIslands.ThecompletepowerrequirementoftheseIslandsismetby
diesel generators. Inlong run OTEC could be one of the substantialand
renewable non endingsource of electric power withoutany environmental
impactfortheseIslands.

Waves
The MNES was considering establishinga1MW Wave Plantat Mus Break
Water, Car Nicobar, but no decisioncould be takenas yet, as this would
involve shifting of heavy equipments and accessories. M/s Sea Power,
Sweedenhadalsoshowninterestinestablishing1MWfloatingwavepower
vesselandthismatterhasbeenreferredtotheMNES,NewDelhi.
Contd..11/

12
Tidal
 The CEA had conducted a preliminary study of various locations in these
Islandsduring1992.ThereportindicatedthatTidalPowergenerationwould
be feasible at some locations but may not be commercially viable with
referencetothecostofdiesel.

WindEnergySystems
For assessing the wind energy potential, Indian Institute of Tropical
Metrology, Bangalore had established20 mtrs wind mastsat ten different
locationsin the North Andaman, Middle Andaman, South Andaman, Little
Andaman, Car Nicobar, Teresaand KamortaIsland. Afteranalysisof wind
potential from1992 to 1999 it was found that only one location namely
KeatingPoint,Mus,CarNicobarishavingtherequiredaverageannualwind
speed forinstallationof wind Electric Generators. But owing torestriction
imposed by Light House and Shipping the installation of wind Electric
Generators could not be carried out. Further four locations in North
Andaman,MiddleAndaman,SouthAndamanwereselectedand30mtrswind
mast were installed during Dec 2004. Only one location namely Mount
HarrietinSouthAndamanishavingtherequiredaverageannualwindspeed
forinstallationofwindElectricGenerators.A10kwWindSolarHybridsystem
is beinginstalledas demonstration project. Studyof wind energy potential
with 50 mtrs wind mast in five locations and 30 mtrs wind mast in two
locationsisgoingoninSouthAndaman,CarNicobar,andKamortaIslands.It
isproposedtoestablishGridconnectedwindelectricgeneratorsatsuitable
locations.

HydroSystem
A5.25MWKalpongHydroElectricProjectatKalpongRiver,NorthAndaman
wasestablishedbyNHPCduringSeptember,2001whichhasgenerated51.50
MU energy till April, 2008. NHPC prepared feasibility reports for
establishmentofMini/MicroHydelSystemsat8locationsinNorthAndaman,
MiddleAndaman,LittleAndamanandSouthAndaman.Asperthedirection
ofMNRE,7FeasibilityStudyReport(FSR)preparedbyNHPCnamelyKalpong
Downstream,KorangNallah,RangatNaallah,PanchvatiNallah,Vasundhara
Nallah,KamsaratNallahandKrishnaNallahweresenttoAHEC,IITRoorkee
forreviewandupdatingandalltheupdated7FSRsweresenttoMNREfor
approval.Outofthe7FSRs,MNREconveyedtheirapprovalforonly2Hydro
ElectricProjecti.e.atKalpongDownstreamandKorangNallahbasedonthe
respective FSR. Approvalof remaining5 FSRsisawaiting from MNRE. The
NHPChasbeenapproachedtocarryouttheimplementationofabove2Hydel
Projects.
Contd..12/

12

7.ELIGIBLEDEVELOPERS/PRODUCERS:
Any Registered Companies, Corporations and Cooperative or Registered Society
desirousofinstallingsystemsand generating electricity from New &Renewable
Energy Sources such as Mini/Micro Hydro, Solar Photo Voltaic, Solar Thermal,
Biomass, Bagasse, Wind, Cogeneration,MunicipalandIndustrial Waste, Biogas &
Ocean will be considered by the Administration for setting up such systems &
projects, if in the opinion of the Administration the developer is found eligible,
sound&capableonthefollowingcriteria.
1. Technicalsoundnessoftheprefeasibilitystudyandinvestigation.
2. Financialsolvencyandtechnicalexpertise.
3. Managerialexperienceintherelevantfield.

There shall be no restriction onlegalstructure of entrepreneurin generation of

power.Companies,cooperatives,partnerships,LocalSelfGovernments,Registered
Societies, NGOs, individuals would all be eligible producers for development of
powerprojectfromNRSE.However,dependingonthesizeoftheprojectspecific
legalstructureandqualificationcriteriashallbelaiddownforselectionofbidders
forNRSEprojects.

Those generating electricity from nonconventional energysourcessuchassmall

hydro projects upto25KW , biomass combustionand gasification, Cogeneration,
SolarPhotovoltaic, Solar Thermal, Urban, Municipal and IndustrialWaste, Wind
Electric Generatorsand New Technologieslike fuelcellsofany capacity, biofuels
etc. will be eligible toavail theseincentives under the scheme. There will beno
restriction on generation capacity orsupplyof electricity to the State Grid. The
statenodalagency,Boards/Corporations.Privatedevelopers,companies,Consortia
orCooperativeswillalsobeeligibleforavailingincentivesunderthisscheme.In
addition to thesitesalreadyidentified by Electricity Department, A&N Admn. for
MicroHydel Project, Privateinvestors mayalsoapply forselfidentifiedsties,not
includedinthelistofprojectidentifiedbyElectricityDepartment,A&NAdmn.Self
identified project in wind energy sector shall be promoted by allowing private
developerstosetupwindpowerprojectsonfirstcomefirstservedbasis.
Complete transparency in allotting projects and evaluation of tenders shall be
ensured,keepinginviewthefinancialandtechnicalparameters.Acomprehensive
tenderdocumentshallbedesignedforinvitingbidslistingouttechnicaland
financialparameterofthe

Contd..13/

13

potentialeligiblebidders,whichwouldbeapprovedbytheElectricityDepartment,
A&N Admn. On the basisof biddingand evaluationparameterscontainedin the
tender document, bids would be invited and evaluated by an expert technical
committeeappointmentbytheElectricityDepartment,A&NAdmn.
8.QUALIFYINGCRITERIAFORBIDDERS:
ELIGIBILITYCRITERIA:
1. Experienceofhavingsuccessfullycompletedworksduringthelastfiveyears:
Threesimilarcompletedworkscostingnotlessthantheamountequalto40%
ofestimatedcostofproposedproject
 OR
Twosimilarcompletedworkscostingnotlessthantheamountequalto60%
ofestimatedcostofproposedproject
OR
Onesimilarcompletedworkofaggregatecostnotlessthantheamountequal
to80%ofestimatedcostofproposedproject.

2. RegisteredCompanywouldbepreferredasprojectdevelopers.Individualand
partnershipfirmswouldnotbeeligible.

3. DetailswillbespecifiedatthestageofissueofEOI/RFQ/RFP.

9.FINANCIALCAPABILITY:
1. Turnover:AverageAnnualFinancialturnoveronestablishment,operation
andmaintenancetobeatleast50%oftheestimatedcostduringthelast
threeconsecutivefinancialyearssupportedwithI.TClearances.
2. DetailswillbespecifiedatthestageofissueofEOI/RFQ/RFP.

10.SELECTIONANDAWARDOFPROJECTS:
i) TheElectricityDepartment,A&NAdmn.willinviteoffersforvariousprojectsfor
development in private sector. The offers will be scrutinized an Steering
committee&thedecisionofSecretary(Power),A&NAdmn.shallbefinal.
ii) Interested developers may also, on their own, visit the respectiveareas for
gaining firsthand knowledge & assessing suitable sites/projects before
submittingproposals.
Contd..14/

14

iii) Theprojectdeveloperwillhavetotakeeffectivestepstoimplementtheproject
includingincurring10%expenditureofthetotalprojectcostwithinsixmonths
of approval/allotment of the project otherwise the agreement could be
terminatedandtheprojectallottedtoanotherdeveloper.
iv) SecurityDeposit:ThedevelopershalldepositwithElectricityDepartment,A&N
Admn.arequisiteamountperMWassecuritydeposittowardsthecompletion
oftheprojectwithintheprescribedtimeframe.
ThesecuritydepositshallstandforfeitedbyElectricityDepartment,A&NAdmn.
in the event of failure of the developer to adhere to the prescribed time
schedule

11.CONSTITUTIONOFSTEERINGCOMMITTEE:
The Steering Committee of A&N Admn. for scrutiny & according
approvals/clearancestoprojectisasunder:
1. Secretary(Power),A&NAdmn. : Chairman
2. PCCF,ForestDepartmentorhisrepresentative : Member
3. Secretary(Finance),A&NAdmn : Member
4. DeputyCommissioner,District : Member
5. ChiefEngineer,APWD : Member
6. ChiefExecutiveOfficer,ZillaParishad : Member
7. Director,MNRE,NewDelhiofrespectivefield : Member
8. Suptdg.Engineer,ElectricityDepartment: Member
9. ExecutiveEngineer(NRSE),Elect.Department : Member(Secretary)
The Committee may coopt other officials & experts as and when required for
scrutiny & evaluation of different projects. The Committee will also oversee
implementationoftheseGuidelinesbytheotherDepartments/Agencies.
12.LANDACQUISITION
Arrangingland forall the NRSE projects shall be the responsibility of the Power
Producer/Developerathisowncost.

TheinventoryofsurplusandunusedlandavailablewithPublicSectorUndertakings,
Urban Local Bodies/Gram Panchayat lands and suitable private waste lands,
unproductivesinglecropagriculturallandscanbeidentifiedforrenewableprojects.

Contd..15/

15

IftheGovernmentlandisavailableforsettingupofNRSEprojects,thesameshallbe
providedonnominalmonthlyleaserentofRs.1.00(Rupeeoneonly)fortheentire
period of the project subject to further renewal on mutually agreed terms and
conditions.Whereverthelandbelongstolocalbodies/GramPanchayat,theA&N
AdministrationwouldencouragethemtoprovidethelandforNRSEprojects.

13.AVAILABILITYOFFRESHWATER
Freshwaterrequiredforrenewableenergypowerprojectswillhavetobearranged
bythePowerProducer/Developerathisowncost.Howeveratsomeplaceswhere
availabilityoffreshwaterissurplus,itshallbeprovidedbytheA&NAdministration
atnominalapplicablecharges.

14.TAX
To promote nonconventional power generation, transmission & distribution
efficiencies, manufacturing and sale of NRSE devices/ systems/ equipments/
machineryrequiredforNRSEPowerProjects,taxincentivesasdeclaredbyGoIand
A&NAdmn.fromtimetotimeshallbeapplicable.

15.OCTROI
Octroi on renewable energy power generation and NRSE devices/ equipments/
machineryforNRSEPowerProjectsshallbeexempted.

16.GRIDINTERFACINGANDMETERING
The Grid interfacing required to connect the generating units will have to be
established/constructedand maintained by the Developers/Producers,allat their
own cost. Scheme for the proposed interconnecting lines to the nearest
TransmissionLines,SubStations/PowerHouseBusbars,willrequiretheapprovalof
competentauthorityandwillbeincludedintheDPR.

1. Interfacing,includinginstallationoftransformers,panels,kiosks,protection
and metering on HT side of the generating station and its subsequent
maintenance shall be undertaken by the power producer/plant owner.
Electricity Department, A&N Administration/ Licensees shall provide
jumperstothelineatthereceivingendlocatedattheendoftransmission
line of the generating station, for evacuation of power to Electricity
Department,A&NAdmn/Licenseesgridsubstation.


Contd..16/

16

2. Thedevelopershallberequiredtolayitsowntransmissionslinesfromthe
switchyard of its generation facility to the Electricity Department, A&N
Admn./ Licensees grid substation at its own cost in addition to all
equipment required for evacuation of powerinitsown generating facility
switchyard.AllAssociatedequipment(s)attheElectricityDepartment,A&N
Admn/ Licensees grid substation for accepting energy from the project
includingup gradationrequiredifanyshallbe provided by the Electricity
Department,A&NAdministration/Licensees.

3. InkeepingwiththePPPpolicyforT&D,theA&NAdmn.reservestheoption
of expanding the scope of power generation so as to include private
participationefficienciesinT&Dnetworksalso,asadditionalscopesofwork
onmutuallyagreedtermsandconditions.

4. The main and check meters will be installed by the developer at the
interconnectionpoint of Transmission Line/Power house/SubStationafter
duetesting&approvalbytheStandardTestinglaboratoryandconcerned
ElectricalInspector.Producerwillinstalltwoseparatemeters,oneforthe
export of power to the gridandanother forimportfrom the grid, on HT
side. The meters and metering boxes will be sealed by the Electricity
Department, A&N Administration/ Licensees. Necessary current limiting
devicessuchasthyristorswillbeinstalledinthegeneratingequipmentby
the producer. Producershall generate matchingMVARsso that monthly
average power factor does not exceed 0.88 NRSE Project generators,
 suppliersanddistributorsshallensurethattheirinstallationconfirmstothe
StateGridCodenotifiedbyJERC.

5. The requiredprotectivedevicesasapproved by Electricity Department &
ElectricalInspectorandasperprudentpractices,tobeincorporatedinthe
systembythedeveloper.

6. TheA&NAdmn.shallnotbeliableforanycompensationforanydamageor
losstotheDevelopersequipmentduetonormaloperatingconditionsinthe
Island.Thedevelopershallproviderequiredprotectiondevicestosafeguard
hisequipmentagainstabnormalconditionsduringT&Dlinefaults.

Contd..17/

17

17.COSTOFPROJECTS
The entire cost of project including transmission & interconnection system for
evacuationofpowertotheTransmissionLine,powerhouseorSubstationwithall
metering,protectiveinstruments/devicesshallbebornebythedeveloperandwill
beapartofDPR.

18.PRICEOFPOWER
Thetariffwillbefinalizedthroughopencompetitivebiddingaspertheprovisionsof
Acts, Rules and regulations with a cap as per the Joint Electricity Regulatory
CommissionguidelinesfordifferenttypesofRenewablesourcesofenergy.

19.POWERPURCHASEAGREEMENT(PPA):
Thepurchase/saleofelectricitybypowerproducertoElectricityDepartment,A&N
Administration will be governed by the PPA executed between the Electricity
Department, A&N Administrationand Developer/Power Producerandas per the
decisionofJERCafterfollowingtheopencompetitivebiddingprocessasprovidedin
Acts,rulesand policies. ThePPA will be fora period of 20 yearsand thereafter
extendableforfurtherperiodof10yearsonmutualagreement.

20.SETTLEMENTOFACCOUNTS
The accounts of all transaction between the power producer and the Electricity
Department,A&NAdministrationregardingcostofpowersupplied/purchasedshall
besettledonmonthlybasis,onthebasisofunitsofenergy(KWh)supplied.

21.ENERGYBILLING
Theenergybillingshallbeonthebasisoftotalunitssuppliedinamonthonasingle
parttariffbasiswhichwouldincludebothfixedandvariablecharges.

ThesingleparttariffcouldbeeitherlevelisedtarifffortheperiodofPPAorinitial
tariff and annual escalation to be determined during competitive bidding in
consultationwithJERC.
22.MAXIMUMREQUIREMENTOFRENEWABLEPOWERINVARIOUSISLANDS
Thepowerproducerscanusethepowergeneratedforcaptiveconsumptionorfor
sale to other bulk consumers/licensees including Electricity Department, A&N
Administration.


Contd..17/

17

TheElectricityDepartment,A&NAdministrationwillenterintoPPAforacontinuous
powerrequirementineachIslandtomatchwiththeexistingrequirement&demand
of the respective Island to be decided by the Electricity Department, A&N
Administrationoncasetocasebasis.

(a) ThepowerproducedbytheWind&Solarsystemshallgenerallynotexceed
50%oftotalrequirementofrespectiveIslandandratingofexistingDGSets
whichwillbedecidedbytheElectricityDepartment,A&NAdministrationon
casetocasebasis.

(b) In case of Hydro & Biomass based power generation atleast75% of the
installedcapacitywouldbeavailableascontinuousbaseloadsupplytothe
Gridforwhichadequatecapacitywouldbeinstalled.Duringthepeakload
hoursi.e.from5.00PM to11.00PMif thereisanyshortfallof the power
supply (KWh) the power producer will be penalized twice the cost of
purchasecost.
23.WHEELING
The Electricity Department, A&N Admn. / Licensee will undertake to transmit
throughitsgridthepowergeneratedfromNRSEprojectsandmakeavailabletothe
producer forcaptive usein thesame companyunitslocatedin thestate or their
partlysalewithintheStateatauniformwheelingchargeof2%oftheenergyfedto
thegrid,irrespectiveofthedistancefromthegeneratingstation.Separatetripartite
Agreement will be executed between the company, Electricity Department, A&N
Admn./Licenseesandthirdparty(s)layingdowntheprocedureforappointmentof
energyand othercommercialclausesinrespect of energy tobe wheeled to third
party (ies). Howeverprivate developersshall berequired to filea petitionin the
JERCforapprovalofwheelingcharges.

24.BANKING
The banking facility for thepower generatedshall beallowed fora periodofone
yearbytheElectricityDepartment,A&NAdmn/Licensees.

25.EXEMPTIONFROMELECTRICITYDUTY
The powergenerationof NRSEprojectsshallbe exempted fromlevy of Electricity
duty.ElectricityDepartment,A&NAdministration/Licenseeswillaccepttheinjection
ofenergyinfullduringsustainedhighfrequencyhourstoensurefullutilizationof
nonconventionalenergyresources.

Contd..18/

18

26.LETTEROFCREDIT
The Electrici ty Department, A&N Admn/ Li censee will provide facility of i rrevocable and
revol vingletterofCreditissuedbyanyna tionalizedbank.Theamountoftheletterofcredit
shallbeequaltothebillamountofonemonthonthebasisofaverageoflastthreemonths.
All expendi turesonletterofcreditshallbebornebythepowerproducers.

27.SINGLEWINDOWCLEARANCE
Toa cceleratedevelopmentofNRSEprojects thereisaneed toestablisha SingleWindow
ClearanceMechanism.All necessaryandapplicableapprovals/clearance(vizenvi ronment,
forestland,pollution control,water,useofNRSE resourcesandinvestmentclearanceetc)
requiredfortheprojectwouldbeconsideredforsuchapplicableclearanceandapprovalsin
a timeboundmanner(wi thina periodof60da ys fromthedateofsubmissionofcomplete
applicationalongwi th requisite feeasper the requirementofapproval/clearanceissuing
bodies/departments). An Empowered Commi tteeshallbeformedunder theChairmanship
of Secretary (Power), A&N ADMN. for implementation of NRSE Power Project in A&N
Admn.. The applications for NRSE Projects would be required to be submitted to the
Secreta riatoftheaforesaidEmpoweredCommittee.

The Secretariat will forwa rd the applications to the relevant departments for their
consideration and the concerned department will convey thei r approval / clearance or
comments,i fanywi thinthestipulatedtimeperiodof45days fromtheda teofforwa rding
theapplica tion. In case theconcerneddepartmentfails to respondwi thinthes tipulated
ti meof 45da ys,necessary concurrence/approval/clearance to theprojectwillbedeemed
toha vebeengranted.Representati vesoftheconcerneddepartmentswillpa rticipateinthe
meetingof theEmpowered Committee toelabora te thei r comments/observations,ifany,
forconsidera tionoftheCommi ttee.Thesecreta riatwillbringuptheagendai temsinclusive
of the comments of the concerned depa rtment i f any along with i ts internal
assessment/noteonthesubject.TheEmpoweredCommi tteewouldtakeappropriateview
anddecisionfora ccordingitsapproval/clearancewithinthes tipulatedperiod.Thedecision
oftheEmpoweredCommi tteeshallbefinalandbindingonallconcerneddepartments .

Thepri vatedevelopersshallhoweverbe requi red to fulfillallstatutory/legal requirements

wi th rega rd to project reports/documents submission as per requi rement of
approval/clearanceissuingbodies/organizationsundertheGovernmentrules,regulations&
Acts .

Thedevelopersforobtainingtheapprovalofprojectproposal willsubmitthei rapplications

totheSuperintendingEngineer,Electri cityDepa rtment,A&NAdmn..Theirprojectproposal
willbeforwardedto theGovernmentforapproval. Afterapprovalof theprojectproposal,
andafterissuingofallstatutoryclearances,theproducershallenterintoanImplementation
AgreementwithElectri cityDepa rtment,A&NAdmnwithina periodofonemonthfromthe
dateofapprovaloftheproject.
Contd..19/

19
Thepri vatedevelopers shallfilepetitionintheJERCforta riffapprovalwithin15da ysafter
signing of the implementa tion agreement with Electri city Department, A&N Admn/
Li censeesshallsign the Power Purchase Agreementafter theissueof ta riff orderby the
JERCwi thin45daysofthesubmissionofrequisitedocumentsbythedevelopers.

If theapplicantdoesnot takeeffecti ves teps toimplement theprojectwi thinsix months

fromthedateofapproval oftheprojectproposal,theAgreementcouldbeterminatedand
theirprojectproposalwill becancelled(i .e.a tleast10%ofthetotal projectcostshouldbe
incurred).

Theselfidentifiedsitesbypri vatedevelopers,incaseofsmall/microhydelprojectsshallbe
allocatedonfi rstcomefirs tservedbasistopri vatedevelopers.Howeverincasemorethan
oneapplicationisreceivedfromdifferentpri vatedevelopers onthesameda yforthesame
self identified site then competiti ve bidding shall be carried out among the pri vate
developers forallocationofselfidentifiedsite.Theselfidenti fiedsiteshallbeallocatedto
the pri vate developer offering the highest energy sha re over and above the minimum
stipulatedenergyshare.

28.FACILITATIONSERVICESBYELECTRICITYDEPARTMENT,A&NISLANDS.
TheA&NAdmn.willprovidefreelyandtransparentl ytoallpa rtiesthedata a vailablea tits
disposalwhichmightassistthepromotersinassessingtheviabilityoftheprojects.

The Admn. will provide ma jor thrus t to the commercialization and to encourage pri vate
sectorparti cipationin thesettingupofnonconventionalenergy basedpowergeneration
and other projects , Electrici ty Depa rtment, A&N Admn shall provide complete projects
support and fa cilitation services including administra tive support for obtaining sta tutory
clearance at va rious levels and financial and techni cal assistance to priva te promoters,
desirousofsettingupnonconventionalenergybasedprojectsforwhi chanagreementshall
be required to be signed wi th Electri city Department, A&N Admn. The Electrici ty
Departmentwill cha rgefa cilitationservi ce cha rges @ 0.1%of theproject costas per the
DetailedProjectReportonallNRSEProjects.

All project developers (Pri va te as well as Government) can seek assistance of Electrici ty
Department,A&NAdmn.interms ofseekingca rboncreditsunderCDMforNRSEProjects .

29.INCENTIVES
The power generation units shall be enti tled to all the available due indus tries and tax
relatedincenti vesasprovidedbytheMNRE,GoIandA&NAdmn.fromtimetotime.

The power producers setting up hydel projects will pay cess @ one paisa per unit of
electrici tygeneratedforuseof ri ver/canalwa ter. Cesswillbeapplicableonhydel project
allottedafterissuance of the Policy. For canal basedhydelproject, poundageof water
uptoFull Suppl y Level in theupstreamof canalshallbeallowedforoptimalutilizationof
wa terresources.
Contd..20/

20

30.APPROVAL/CLEARANCESFROMVARIOUSAGENCIES
The approval/ clearances from all authori ties & agencies for Pollution Control , Ai rports,
Revenue,Forest & Envi ronment, Wateretc.as per prevailing Acts, Rules andRegulations
andGuidelines,shallbeobtainedbytheProjectdevelopers .TheA&NAdministra tionwill
however,extendallpossibleassistanceforobtainingsuchclearances.

31.PROCEDUREFORCLEARANCES/APPROVALS
SteeringCommitteeforApproval/ClearancesforNRSEProjects:
All necessary and applicable approvals/ clearances requi red for a project would be
consideredexpeditiouslyina timeboundmannerfromthedateofsubmissionofcomplete
applicationalongwi thall details&requisitefeeaspertherequirement.Theseapplications
forallprojects wouldberequiredtobesubmittedtotheconcernedAuthority/Department
by the Project Developerwitha copy to the MemberSecreta ryof theaforesaid Steering
Committee.
TheSteeringCommi tteewillalsopersuetheapplications wi ththerelevantdepartmentfor
their consideration and concerned department will convey their approval/clearance or
comments,i fany within thes tipulated timeperiod. Representati ve(s) of the concerned
department/agencieswillpa rticipatein themeetingsofSteering Committee toelaborate
their comments/ observa tions, if any, for consideration of the commi ttee. The Steering
Committee would take appropriate view for according approval/ clearances within the
stipulatedperiod.
32.TENDER/BIDDOCUMENTS
Acomprehensi vetenderdocumentshallbedevelopedforinvi tingbidslistingouttechni cal,
Managerial and financial parameters of the potential eligible bidders, which would be
finalisedby the Electrici tyDepartment,A&N Administration. On thebasisofbiddingand
evaluation pa rameters contained in the tender document, bids would be invi ted and
evaluatedbyanexperttechni calcommitteeappointedbySteeringCommi ttee,A&NAdmn.,
oncasetocasebasis.
33.STATELEVELADVISORYCOMMITTEE:
A State Level Advisory Commi ttee headed by Secreta ry (Power), A&N Admn. will be
consti tuted tomonitor theprogress,implementationandopera tionofprojectsgenerating
electrici ty through nonconventional energy sources. The Advisory Commi ttee will
undertake review of the nonconventional energy guidelines and policies; and aid and
advise the Electrici ty Department, A&N Admn. regarding any changes necessary in the
policyguidelines.

Contd..21/

21

34.APPLICATIONPROCEDURE:
i)Eli gibleentrepreneurs,interestedforsettingupPowerProjects basedonNRSE
wi th gridinterface, ma y submi t EOI, Bids, Tender etc. as and when these are
publishedinNewsPapers&A&NAdmn.websitewww.and.ni c.in.

 ii) TheBids/ Tenderswillbeevaluatedby theElectri cityDepa rtment,A&N Admn.

underthesupervision&controlofSteeringCommi ttee.

(iii) Thesuccessfulbidders for Power Purchase Agreementshallabidebytherules

applicabletothiseffectandframedfromtimetotime.
(i v) Thedisputes(i fany)shallbesettledunderthejurisdictionofcompetentCourtof
lawatPortBlair,A&NIslands.
(v) New and Renewable Sources of Energy Di vision, Electrici ty Department, A&N
Admn.willactas the Nodal Agencyfor theenti reprogrammeand functionas
thesinglewindowforpromotionandfacilita tionofallprojects.
(vi Incaseofanydoubts ordifficul ties ininterpretationofanyi temofthisPolicyor
implementation thereof, i t shall be decided or resolved by the Electrici ty
Department,A&NAdministration.