**Executive Summary**
This document summarizes the Indian government's response to a parliamentary question regarding solar parks in Tamil Nadu. As of December 3, 2025, no solar parks have been sanctioned in Tamil Nadu under the "Development of Solar Parks and Ultra-Mega Solar Power Projects" scheme, and no new proposals have been received. The government has taken various steps to encourage the development of solar projects, detailed in the Annexure.
**Key Points / Main Content**
* **Solar Parks in Tamil Nadu**
* No solar parks sanctioned in Tamil Nadu under the mentioned scheme.
* No new proposals received for solar park development in the region.
* **Government Initiatives for Solar Energy Development**
* Standard Bidding Guidelines issued for tariff-based competitive bidding for Grid Connected Solar, Wind, Wind-Solar Hybrid, and FDRE projects.
* 100% Foreign Direct Investment (FDI) permitted under the automatic route.
* Implementation of a scheme to set up Solar Parks and Ultra Mega Solar Power projects.
* Inter-State Transmission System (ISTS) charges waived for interstate sale of solar and wind power projects commissioned by June 30, 2025.
* Renewable Purchase Obligation (RPO) and Renewable Consumption Obligation (RCO) trajectory notified until 2029-30.
* Funding for new transmission lines and sub-stations under the Green Energy Corridor Scheme.
* Guidelines issued for Resource Adequacy Planning Framework for India.
* Standard & Labelling programs launched for Solar Photovoltaic modules and Grid-connected Solar Inverters.
* Transmission plan prepared until 2030 for RE trajectory.
* “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
* Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, to ensure access to affordable, reliable, and sustainable green energy.
* Green Term Ahead Market (GTAM) launched to facilitate Renewable Power sale through exchanges.
* Government orders issued for power dispatch against Letter of Credit (LC) or advance payment.
**Impact Analysis**
**Tamil Nadu Government**
* **Impact:** Currently, Tamil Nadu has not been sanctioned any solar parks under the national scheme, which may limit its progress in solar energy generation through this specific avenue.
* **Action Required:** The state government may need to submit new proposals to avail the benefits under the solar park scheme.
**Renewable Energy Developers**
* **Impact:** The government's initiatives, such as the waiver of ISTS charges, RPO/RCO trajectory, and GTAM, could create a more favorable environment for developers.
* **Action Required:** Developers should be aware of and leverage the various schemes and guidelines to invest in solar projects, particularly taking into account Letter of Credit (LC) and advance payment regulations.
**Consumers**
* **Impact:** Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 with objective of ensuring access to affordable, reliable, and sustainable green energy for all.
* **Action Required:** Consumers with contract demand of 100 kW or above through single or multiple single connection aggregating Hundred kW or more located in same electricity division of a distribution licensee.
Key Entities Referenced
Solar Parks and Ultra Mega Solar Power projects: A scheme to develop solar energy projects by providing land and transmission.
Tamil Nadu: Indian state where the establishment of Solar Parks is discussed.
Renewable Purchase Obligation (RPO): Obligation to consume renewable energy, followed by Renewable Consumption Obligation (RCO).
Green Energy Corridor Scheme: Scheme to fund transmission lines and sub-station capacity for renewable power evacuation.
Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022: Rules to ensure access to affordable, reliable, and sustainable green energy through open access.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 565
ANSWERED ON 03.12.2025
SOLAR PARKS IN TAMIL NADU
565. SHRI MANI A
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the Government has any proposal to sanction new Solar Parks in Tamil Nadu
particularly in Dharmapuri district which has vast potential for solar energy generation;
(b) if so, the details of Central Financial Assistance released to Tamil Nadu under the Solar
Park Scheme; and
(c) the steps being taken by the Government to encourage private sector investment in setting
up Solar Parks and large-scale solar projects in Dharmapuri and other potential districts of
Tamil Nadu?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) & (b) As on date, there is no Solar Park sanctioned in Tamil Nadu under the scheme for
“Development of Solar Parks and Ultra-Mega Solar Power Projects” and no new proposal for
the same is received.
(c) The Government has taken various steps for promoting setting up of solar projects in the
country including Tamil Nadu. The major steps taken are given at Annexure.
*****ANNEXURE REFFERED TO IN REPLY TO PART (c) OF LOK SABHA
UNSTARRED QUESTION NO. 565 FOR 03.12.2025
Steps taken to promote setting up of solar energy capacity in the country
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement
of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable
Renewable Energy (FDRE) projects have been issued.
• Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic
route.
• Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being
implemented to provide land and transmission to RE developers for installation of RE
projects at large scale.
• Inter State Transmission System (ISTS) charges were waived for inter-state sale of solar
and wind power for projects commissioned by 30th June 2025.
• To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable
Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which
is applicable to all designated consumers under the Energy Conservation Act 2001 will
attract penalties on non-compliance. RCO also includes specified quantum of consumption
from Decentralized Renewable Energy sources.
• Laying of new transmission lines and creating new sub-station capacity has been funded
under the Green Energy Corridor Scheme for evacuation of renewable power.
• Issued Guidelines for Resource Adequacy Planning Framework for India.
• Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected
Solar Inverters have been launched.
• To augment transmission infrastructure needed for steep RE trajectory, transmission plan
has been prepared till 2030.
• “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been
notified.
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules,
2022, notified on 06th June 2022 with objective of ensuring access to affordable, reliable,
and sustainable green energy for all. Green Energy Open Access is allowed to any
consumer with contract demand of 100 kW or above through single or multiple single
connection aggregating Hundred kW or more located in same electricity division of a
distribution licensee.
• Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable
Power through exchanges.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC)
or advance payment to ensure timely payment by distribution licensees to RE generators.