1. Implementation of SPV based Water
pump for Irrigation in India
Concept Note
Presented By
Wasim Ashraf (M.Tech IIT Kharagpur)
During the Internship at
SOLAR ENERGY CORPORATION OF INDIA Ltd.
भारतीय सौर ऊर्ाा निगम
(A GOVERNMENT OF INDIA ENTERPRISE)
(भारत सरकार का उद्यम)

2. Solar Energy Corporation of India
 Solar Energy Corporation of India (SECI) was earlier incorporated under section 25
of Companies Act as a „not for profit‟ Company in the year 2011. SECI operates
under the administrative control of the Ministry of New and Renewable Energy
(MNRE), Government of India.
 The companies has recently been converted to section 3 of the companies‟ act 2013
as a commercial entity with expended RE (Renewable Energy) portfolio.
 The main objective of SECI is to support the MNRE and function as the
implementing and executing arm of MNRE for facilitating activities under
Jawaharlal Nehru National Solar Mission (JNNSM). The company aims at the
development and promotion of the solar energy technologies in the country to
eventually achieve commercialization.
 Carry on business of generation, forecasting, purchasing, producing, manufacturing,
importing, exporting, exchanging, selling and trading in power products and services
in India and abroad
 Own, manage, investigate, plan, promote, develop, design, construction, operation,
maintenance, renovation, modernization of power projects in solar, on-shore/off-
shore wind, geo-thermal, tidal, bio-gas, bio-mass, small hydro and other renewable
energy sources in India and abroad
 Carry on the business of planning, investigation, survey, research, design and
preparation of preliminary feasibility and detailed project reports, related to Power
Projects in India and abroad
 Establish, provide, maintain, conduct, scientific and technical research, experiments,
pilot projects and tests of all kinds and to process, improve, innovate and invent new
products, technologies, directly or in collaboration with other agencies in India &
abroad to achieve commercialization
 Promote, organize, conduct and render consultancy services in the related activities
of the Company in India and abroad
 Assist, carry out such directions as may be issued by the Administrative Ministry
from time to time in executing, evolving, managing, overseeing and coordinating
programmes and projects under Jawaharlal Nehru National Solar Mission and all
such other Programmes or Missions as may from time to time to be implemented
 In the present outlook of the RE sector, especially solar energy, SECI has a major
role to play in the sector‟s development.
SECI-owned Projects and under JNNSM Phase I:
10 MW Solar Power Project under JNNSM is being implemented by SECI in Rajasthan.
This would be commissioned in 2015-16. SECI has been undertaking Project Management
Consultancy (PMC) assignments for several clients. SECI is setting up two 50 MW SPV
projects for IREDA and THDC in the State of Kerala on turnkey basis. These projects are
likely to be commissioned during 2015-16.

3. Consultancy
Detailed Project Reports („DPRs‟)/Pre-feasibility Reports („PFRs‟) have been completed for
Ordinance Factory Board sites, Bharat Petroleum Corporation Ltd., HPSEB, Pondicherry
Power Corporation Ltd., Northern Coalfields Ltd., Hindustan Aeronautics Ltd. Etc.
Research and development work:
Solar power cost reduction potential is highly correlated with the efficiency improvement in
solar technologies. JNNSM has envisaged a progressive and focused research infrastructure
development. SECI is a member of the Solar Energy Research Advisory Council (SERAC)
constituted by MNRE to analyse the existing research infrastructure in solar sector and then
to set up a framework which would incubate a conducive environment for accelerating
research and development activities in the country in alignment with the vision of JNNSM.
Solar Radiation Activity
SECI is working on a R&D project for setting up calibration facility for solar radiation
measuring sensors in collaboration with Solar Energy Centre. The project also has the
objective of solar radiation data analysis at select locations.
Solar Guidelines Web portal
The Solar Guidelines web-portal has been created in coordination with GIZ for providing
comprehensive solar policy and projects related information at a single place. Phase II of the
project is being implemented by SECI.
Calibration Lab facility at NISE, Gwalpahari
A calibration facility for solar radiation measuring sensors at National Institute of Solar
Energy (NISE) has been set up by SECI.
Background
Solar energy is the most readily available source of non-polluting renewable energy resource. It
can be utilized in two ways viz. direct conversion in to electricity through solar photovoltaic
(PV) cells and indirect conversion through generating high temperatures by concentrating
collectors and thereby run the steam turbine in line with a conventional thermal power plant.
The uniqueness of the solar technologies is that it offers a wide range of applications in solar PV
as well as solar thermal technology in which case, the generated heat could be used for domestic
as well as industrial applications and power generation. India being a tropical country is blessed
with good sunshine over most parts; the number of clear sunny days in a year also being quite
high. India is located in the sunny belt of the world. As per Ministry of New and Renewable

4. Energy (MNRE), Government of India (GoI), the country receives solar energy equivalent to
more than 5,000 trillion kWh per year with a daily average solar energy incident over India
which varies from 4.0 to 7.0 kWh/m2 depending upon the location. India‟s equivalent solar
energy potential is about 6,000 million GWh of energy per year.
The cost of solar technology has come down, way down, making it is a viable way to expand
access to energy for hundreds of millions of people living in energy poverty. For farmers in
developing countries, the growing availability of solar water pumps offers a viable alternative to
system dependent on fossil fuel or grid electricity. While relatively limited, experience in
several countries shows how solar irrigation pumps can make farmers more resilient against the
erratic shifts in rainfall patterns caused by climate change or the unreliable supply and high costs
of fossil fuels needed to operate water pumps. Experience also suggests a number of creative
ways that potential water resource trade-offs can be addressed.
Feed-in pricing and the development of “smart” subsidies are a few of the solutions to mitigate
water over-use while encourage the uptake of a cleaner and more reliable water technology.
Governments, NGOs and the private sector need to act urgently to mitigate a future of water
scarcity while ensuring a consistent source of income for the majority agrarian population in
developing countries.
Intended Nationally Determined Contribution
On 1st
October 2015, India submitted its Intended Nationally Determined Contribution (INDC),
including the targets to lower the emissions intensity of GDP by 33% to 35% by 2030 below
2005 levels, to increase the share of non-fossil based power generation capacity to 40% of
installed electric power capacity by 2030 (equivalent to 26–30% of generation in 2030), and to
create an additional (cumulative) carbon sink of 2.5–3 GtCO2e through additional forest and
tree cover by 2030. As per various analysis available in public domain, with currently
implemented policies, including targets for 175 GW renewable by 2022, it projected that the
share of non-fossil power generation capacity to reach 36% in 2030. In this direction, the GOI
has scaled up the National Solar Mission targets to 100 GW by 2022.
As of end July 2015, the following are the most prominent incentives:
Capital Subsidies: The capital subsidy available is 30% of the MNRE benchmark prices.

5. Target Sectors
 Water pumping is an energy intensive activity and consumes a large amount of
electricity depending on the farm’s irrigation area and type of crop. Solar energy, which
is abundantly available in India, can be used for pumping water via solar Photovoltaic
technology.
 India imports the petroleum oil to satisfy its need and its lack of conventional
commercial energy resources places a burden on the national economy due to the
relatively high cost of imported oil and the high energy investment needed for
economic and social development of the country.
 With every challenge comes an opportunity, and that is to become self-sufficient, and
reliant on your own natural resources. Jordan is in fact very rich in renewable resources
but, due to a lack of investment and foresight, these resources have not been exploited.
 So the government has opted to subsidize SPV Pump or solar irrigation pumps, and
there are about 19500 operating in fields by 31st
March 2015 as per data of Ministry of
Statistics and Planning. They are more beneficial in India’s north eastern agricultural
regions where there is less access to grid power and diesel generators are more
prevalent.
 Solar pumps can displace fossil fuels, reducing carbon emissions and general pollution
while providing a consistent source of energy suited to irrigation pumps.
 After the initial investment in the pump system, the operating cost of pumping water is
close to zero, enabling farmers to pump as much as they want at no marginal cost. This
brings to the forefront the importance of developing “smart” subsidy schemes, where
farmers can benefit from increased yield/income and at the same time ensure an
efficient use of both energy and water resources.
 The agriculture pump market in India is valued at about ₹ 8600cr. In 2014-15, and is
expected to grow at the rate of 7to8percent annually.
 According to Ministry of Agriculture it accounts for 14% of India’s GDP Project Details.
 India`s Agriculture sector consumes about 159 billion units a year which is equivalent
to around 18.03% of total National electricity consumption of India in 2013-14.
 There is average 31% transmission and distribution loss and cost of establishing
transmission and distribution network in remote areas is comparatively higher about
per MW power.
 At present Farmer is getting electricity either free or on very low cost (Flat Rate or
₹1to1.5/Unit).
 While the average tariff of electricity is about ₹ 5 per KWh in India so there is
opportunity to reduce loss by selling the saved electricity from agriculture to industry,
ultimately decrease of current account deficit of state as well as central government
and reduction in loss of Discom power companies.
 This will make healthy and green economy with green and healthy environment.
These “Smart” and “integrated” subsidy policies can be used to address or reduce indirect
risks, such as over extraction of groundwater, while still allowing farmers and governments to
reap the benefits of solar irrigation technology. In India, the government could more

6. aggressively subsidize solar pumps with higher capital cost coverage in the regions where
water is plentiful. In areas where water is scarce, the government could reduce equipment
subsidies and encourage farmers to generate solar power for sale to the grid, like a cash crop
in order to repay their portion of the loan.
Objective of proposal
The primary objective of the solar energy research enclave will be:
1- To reduce subsidy load on local Dis-Com as Irrigation accounts for 19% of electricity
supplied by the grid. In many states such as Rajasthan, Karnataka, it touches 40% level.
2- To improve „denial of service‟ due to-
 Long delays in grant of new connections
 Poor quality power
 Unpredictable power availability
This leads to use of DG sets (~8-10 million pumps being used in India), which is
unaffordable for most commodity crops.
3- To reduce farmer stress by providing better control as Agriculture accounts for 80% of
water needs; 60% of irrigation needs met from groundwater, and this share is increasing.
Need to couple pumping with micro irrigation and better controls.
4- Irrigation pumps work ~50-200 days in a year. For remaining days, energy generated can
be exported to the grid. Irrigation pumps can act as anchor loads for rural micro grid
operation.
5- To make green and healthy economy with green and healthy environment by reducing
subsidy burden with SPV water pump.

7. Business Models:
OFF Grid Pump:
OFF-GridPump
Model-1.1: Irrigation
Grid,managed by RESCO
Model-1.2: Individual Pumps,
invested by RESCOs
Model-1.3: Individual pumps ;
Farmer Invested
RESCO:
 Replaces old pumps with efficient
solar pumps
 Sets up a generating station feeding
the pumps; connects the pumps with
distribution lines
 Can also serve other segments to use
excess generation at pumps
 RESCO sets up individual solar pumps
for each farmer / a group that shares
irrigation on its authenticated App.
 RESCO finances it through capital
subsidy and its own arranged capital,
RESCO operationally controls and
maintains the pumps
 Farmers pays for excess electricity
supplied and other valid charges.
 Similar to model 2 but farmer invests
each solar pump system by applying
through authenticated APP
dedicated to SPV water pump
project.
 Financing through subsidy and low
cost loans (like NABARD schemes in
which Aadhar card is linked to
account and subsidy transfer by
DBT.)

8. Implementing Mechanism:
Structure Flow Chart:
Option-A
30% Subsidy
50% of Project cost
3% Service charge
50% of Project cost
1.5% service charge
Get 30% subsidy
10% discount on EPC 40% of Project Cost
Pay to SECI (100%)
MNRE SECI TENDER
DISCOM
COMPANY X
(For EPC and O&M)
BENIFICIARY

9. Under this structure:
1. SECI will mobilize funds worth 50% of the total project cost through CSR fund (if not
possible then customer will pay 100% cost of the project) and 30% project cost will be
given by MNRE through SECI.
2. MNRE will provide 3% service charges to SECI and SECI will provide 1.5% service
charges to concerned Discom.
3. Once these funds have been transferred to SECI, SECI will procure the materials
required by the company X using the entire amount contributed by the PSUs/Beneficiary
through a transparent tendering process.
4. SECI will collect the data about the customer either by common web platform/mobile
App or Discom.
5. The assets so procured will be sent directly to the site but will be transferred to the
Discom which will own the assets.
6. The Discom will then enter into a Service Contract with the company X to do the
Engineering, Procurement and Construction (EPC) and Operation and Maintenance
(O&M) for the required villages using the materials that SECI has procured. This
contract will be for 50% of the entire project cost as 50% has already been utilized by
SECI in the tendering process for procuring the major components required.
7. Company X will then carry out the EPC and O&M with the materials procured by SECI
providing a 10% discount as its contribution to the project as a credit note.
8. Once the project is commissioned, Discom will transfer the 40% sanction to Company X
as per its approval.
9. After accomplishing the project SECI will transfer 30% subsidy into the AADHAR
linked bank account of the beneficiary.
10. First beneficiary will pay 100% cost of the project to the SECI and after completion of
the project it will get 30% subsidy from the SECI and 50% CSR Fund from the SECI (if
possible).
11. Company X will provide EPC and operation & maintenance to the beneficiary and for
that it will provide awareness about the SECI‟s scheme and for that it will open its
service centres in each District or City which is possible.
12. Beneficiary will contact at the authorized centre of the company X to get benefits of this
scheme.

10. Structure Flow Chart:
Option B:
30 30% Subsidy
50% CSR Fund 3% service charge
100% Project Cost 1.5% service charges
Service contracts for EPC and O&M 10% discount
worth 100% of the Project cost on EPC and O&M services.
Gives the approved 90% sanction
30% subsidy from SECI
PSUs SECI
DISCOM
COMPANY X
MNRE
Web/Mobile
APP

11. Under this structure:
1. SECI will mobilize funds worth 50% of the total project cost through CSR contributions from
PSUs (if not possible then beneficiary will pay 100% cost of the project.)
2. Once these funds have been transferred to SECI, SECI will add 50% cost by itself and
transfer 100% cost of the project to the Discom.
3. MNRE will provide 3% service charges to the SECI for implementing the project in various
villages and also give 30% subsidy on the project cost.
4. SECI will provide 1.5% service charges to the Discom to implement the project.
5. The Discom will then enter into a Service Contract with Company X to do the EPC and O&M
for the required villages and also procure the materials required for the same. SECI will have
access to all information pertaining to fund utilization. These contracts will be worth 100% of
the project cost.
6. Company X will then carry out the EPC and O&M after procuring materials on its own. It
will provide a 10% discount on the invoice in the form of a credit note as its contribution to the
project.
7. Once the project is commissioned, Discom will transfer the 90% sanction to Company X as
per its approval.
8. First beneficiary will pay 100% cost of the project to the SECI and after completion of the
project it will get 30% subsidy from the SECI and 50% CSR Fund (if possible) from the SECI.
9. Company X will provide EPC and operation & maintenance to the beneficiary and for that it
will provide awareness about the SECI‟s scheme and for that it will open its service centres in
each District or City which is possible.
10. Beneficiary will contact at the authorized centre of the company X to get benefits of this
scheme.

12. Structure Flow Chart:
Option C:
30% subsidy
3% service charge
Donates 50% of the project cost Pays for procurement through
CSR Funds on behalf of Company X Pay 100% to SECI
Get 30% subsidy
Enters into service contracts for EPC and O&M Provides a 10% discount on EPC and
worth 100% of the project cost O&M services. (Credit Note)
Gives the approved 90% sanction
Implements tender
Under this structure:
1. SECI will mobilize funds worth 50% of the total project cost through CSR contributions from
PSUs (if not possible then beneficiary will pay 100% coat of the project). These funds will
remain in SECI‟s books.
2. MNRE will provide 30% subsidy of the project cost and 3% service charges to the SECI.
3. SECI will give 1.5% service charges to the Discom.
4. The DISCOM will then enter into a Service Contract with Company X to do the EPC and
O&M for the villages and also procure the materials required for the same. This contract will be
worth 100% of the project cost.
5. Company X will float a procurement tender for the materials. This tender process will be
facilitated and overseen by a committee consisting of one member from Company X, one from
SECI and one of the trustees of the DISCOM.
6. SECI will make the payments to the vendors from whom materials are being procured on
behalf of Company X.
PSUs SECI
DISCOM
COMPANY X Floats a procurement Tender
Committee
MNRE
BENEFICIARY

13. 7. Company X will then carry out the EPC and O&M using the materials so procured and hand
over the assets to the DISCOM on a turnkey basis.
8. Company X will provide a credit note to the DISCOM for the 10% discount it is providing on
the contract as its own contribution.
9. Once the project is commissioned, Discom will transfer the 90% sanction to Company X as
per its approval.
10. First the beneficiary will pay 100% cost of the project to the SECI but after completion of
the project SECI will provide 30% subsidy to the beneficiary by AADHAR linked bank account
and also 50% CSR Fund if possible.
11. The whole information about the subsidy, beneficiary, project site and company X will be
available on the web/mobile app.
Breakdown of Roles
SECI
 SECI will help in mobilize the CSR funds from PSUs and subsidy from the MNRE.
 Under option A, float a procurement tender for materials required by Company X and transfer
the materials to the DISCOM so that the DISCOM can remain the owner of the assets.
 If option B is selected, transfer the funds directly to the DISCOM. It will access all information
pertaining to fund utilization through web/mobile app.
 Under option C, SECI will make the payment for the materials under the Procurement tender on
behalf of Company X; it will also form a part of the implementing committee of the tender.
DISCOM
 The DISCOM under option A, enter into a Service Contract with Company X for EPC and O&M
worth 50% of the estimated project cost for the villages if SECI is procuring the
Material.
 The DISCOM under option B, enter into a Service Contract with Company X for EPC and O&M
worth 100% of the estimated project cost for since Company X is procuring the materials.
 Under option C, the DISCOM will enter into a Service Contract with Company X worth 100%
Of the project cost for EPC and O&M. One member from DISCOM will also be a part of the
Committee that implements the procurement tender.
Company X
 Company X will carry out the EPC and O&M for either 50% or 100% of the entire project
Cost depends upon whether option A or B is selected.
 It is also a System Integrator under the SECI guidelines and therefore will receive a
Sanction of 40% or 90% of the total project cost as per option A or B is selected, after
Commissioning the project
 Under option C, Company X will float the procurement tender and form a part of the
Committee that will facilitate the tendering process.
 In all three scenarios, Company X will provide a discount of 10% in the form of a credit note as
its contribution to the project.

14. Thank You