Performance Audit on Solar Parks and Ultra Mega Solar Power Projects, Ministry of New and Renewable Energy

Findings

1. As of March 2024, 58 solar parks had been allocated across 13 states with a total capacity of 40,000 MW, of which only 28.60 per cent — 11,491 MW — had been installed. The deadline has been extended three times, from 2019 to 2026.

   “The initial target of 20,000 MW installed solar power capacity by 2018-19 was revised to 40,000 MW by 2019-20. As of March 2024, 58 Solar Parks were allocated across 13 States, with a total capacity of 40,000 MW of which only 28.60 per cent (11,491 MW) of the targeted capacity had been installed. MNRE has extended the deadline for achieving the target three times from 2019 to 2026, indicating challenges in meeting goals.”Executive Summary

2. In-principle approval to establish solar parks was given without feasibility studies or techno-economic viability assessment, and part of the resulting delay was preventable.

   “The in-principle approval for establishment of Solar Parks was provided without conducting feasibility studies and techno-economic viability assessment. Part of the delays were preventable, such as (i) repeated revisions in Detailed Project Reports which were not realistic in terms of availability of land, layout and technology despite government financially supporting the exercise and (ii) delays in financial closure due to linking it up with generation of internal resources.”Executive Summary

3. Of 18 Phase I parks allocated between 2014 and 2017 with a capacity of 12,761 MW, only 12 — 10,066 MW — were established by March 2024. Of 27 Phase II parks allocated between 2017 and 2022 with 25,600 MW, only two were completed and three partially established.

   “In the nine sampled States, MNRE allocated 18 Solar Parks from 2014 to 2017 (Phase I), with a total capacity of 12,761 MW, aiming for completion within 18 months of approval. By March 2024, only 12 parks (10,066 MW) were established under Phase I… In the sampled States, MNRE allocated 27 Solar Parks from 2017 to 2022 (Phase II), with a total capacity of 25,600 MW… By March 2024, only two Solar Parks (Kalpi in Uttar Pradesh and Agar in Madhya Pradesh) were completed and three Solar Parks Dholera (Gujarat), Nokh (Rajasthan) and Omkareshwar (Madhya Pradesh) had been established partially.”Executive Summary

4. Against a targeted expenditure of ₹8,100 crore, the ministry had released only ₹3,231.76 crore — 40 per cent — by March 2024, which the audit reads as an indicator of the slow pace of implementation.

   “As per Phase I of the Scheme, MNRE was to allocate ₹1,650 crore in the first three years (up to 2016-17), but only ₹640.57 crore (39 per cent) was released. Audit noticed that this trend continued in subsequent years too, with MNRE cumulatively releasing only ₹3,231.76 crore (40 per cent) by March 2024, against the targeted expenditure of ₹8,100 crore.”Executive Summary

5. The Solar Potential Map of India, which assesses solar energy potential across states, was last prepared in 2014 and has not been updated since, even though the wasteland atlas was revised in 2019 and module efficiency has risen to 19-22 per cent.

   “The Solar Potential Map of India, which provides an assessment of solar energy potential across Indian States, was last prepared in 2014. Though the Wasteland Atlas was updated in 2019 and the average efficiency of SPV modules increased to 19-22 per cent, the Solar Potential Map has not been updated to reflect these advancements.”Executive Summary

6. Because only 28 per cent of the targeted solar park capacity existed by March 2024, the anticipated annual carbon dioxide abatement did not fully materialise.

   “Since only 28 per cent of the targeted Solar Park capacity could be created by March 2024, the anticipated annual CO2 abatement did not fully materialise.”Executive Summary

7. The audit records good practice too — landowners in Pavagada taluk of Tumkur district, Karnataka, voluntarily leased about 11,000 acres, and that park was completed as envisaged; Gujarat used government wasteland for Raghanesda, which runs at its full 700 MW.

   “In Karnataka, the landowners of villages of Pavagada Taluk, Tumkur District, voluntarily expressed their willingness to lease out about 11,000 acres land for the site selected for development of Solar Park and the Pavagada Solar Park Project was completed as envisaged… Raghanesda Solar Park was the first solar park under "Solar Parks and Ultra Mega Solar Power Projects Scheme" in Gujarat, which got successfully commissioned and is running at full capacity of 700 MW.”Executive Summary

Fact-checks citing this report

• ◑Lacks contextGive a thrust to renewable sources of energy as an important component of India's energy mix — expand and strengthen the national solar mission.
• ◑Lacks contextWe have achieved cumulative installed renewable energy capacity of 76.87 GW as on February, 2019 and are on track to achieve our goal of 175 GW by 2022… Achieve 175 GW of renewable energy.