To meet the demand of increasing energy supply in the state, the state government is committed to use different sources of energy. In view of this, state government on January 23, 2013 convened a cabinet meeting and solar energy policy was approved in this meeting, which is a progressive step for the overall development of the state. Solar power projects to be set up under the Solar energy policy will increase private investment of the state on one hand and shall make the non-agricultural and barren land available in Bundelkhand, productive and shall lead to production growth and employment opportunities on the other.The policy will be effective till March 2017 and in the period of 500 MW solar projects are intended to be installed. The installed solar projects shall be provided with special promotion by the state for example one two power projects with installed capacity of 200 MW and two the electricity rate for 12-year PPA to be executed for the amount to be paid to concerned Discom by the state government as GBI.
Overall expenditure will be borne by the state government by installing solar power projects in Bundelkhand and Purvanchal region (Board - Devi Patan, Basti, Azamgarh, Gorakhpur, Varanasi and Faizabad) transmission line at sub-station or at interconnection plant, this will reduce the project's overall expenditure and investment will get more exposure.
In case of more than Rs. 500 crores total investment in Solar Farms which shall house more than one solar power project, special incentives will be given on a case-to-case basis. Under this policy, all the solar power plants to be set up are considered as the industrial unit and all the facilities and incentives of industrial policy 2012 of the state will be available.
Between UPNEDA and NHPC Ltd., a joint venture has formed called Bundelkhand Solar Ltd. The joint venture initially by Neda 50 MW solar power project will be established on 112.32 hectares of land in Parasan village district Jalaun. The project will be established in March, 2016. Share of joint ventures of Upineda, would in form of land available near UPNEDA . Maximum share UPNEDA will be limited to 26 percent. In addition to the shares of UPNEDA in the joint venture, remaining shareholding and management will be of NHPC Ltd.. The proposed installation of 50 MW of solar energy policy under the project will be under made the targeted capacity.