Mapping The Ministry Of New And Renewable Energy / Naveen Aur Navikarniya Oorja Mantralaya: Policies And Schemes – IMPRI Impact And Policy Research Institute

Policy Update
Srishtistuti Roy

History

The Ministry of New and Renewable Energy (MNRE) functions as the principal agency of the Government of India, responsible for formulating policies, plans, and schemes aimed at promoting renewable and non-conventional energy resources. It serves as the nodal body for the implementation of both grid-connected and off-grid renewable energy projects across the nation. Moreover, the MNRE is entrusted with the responsibility of achieving India’s target of 500 GW of renewable energy capacity by 2030. This target encompasses the expansion of solar, wind, and bioenergy sectors, along with the promotion of decentralized renewable energy solutions, green hydrogen, and offshore wind energy projects. 

The Ministry plays a pivotal role in driving India’s energy transition and fulfilling its international commitments to carbon emissions reduction under global frameworks such as the Paris Agreement. Furthermore, the MNRE actively fosters international cooperation through initiatives such as the International Solar Alliance (ISA) and engages with international bodies like the International Renewable Energy Agency (IRENA), UNDP, and the Global Environment Facility (GEF) to advocate for the global promotion of renewable energy technologies. The MNRE is currently led by Union Cabinet Minister Shri Pralhad Joshi, with Shri Bhupinder Singh Bhalla serving as Secretary since 2022.

Vision

The Ministry’s vision is to ensure:

1. Energy security by reducing reliance on oil imports by developing and deploying alternative fuels like hydrogen, bio-fuels, and synthetic fuels to bridge the gap between domestic oil supply and demand; 
2. Increased share of clean power by enhancing the share of renewable energy to supplement fossil fuel-based electricity;
3. Energy availability and access by supplementing energy needs for cooking, heating, motive power, and embedded generation of electricity across rural, urban, industrial, and commercial sectors;
4. Energy affordability by providing cost-competitive, safe, and reliable renewable energy options;
5. Energy equity by achieving per-capita energy consumption at the global average by 2050 through a sustainable and diverse fuel mix.

Mandate

The Ministry formulates policies and undertakes initiatives in the following focus areas:

• Solar energy: Promotion and development of solar energy projects including solar parks, rooftop solar projects, and off-grid solar applications
• Wind energy: Focusing on both onshore and offshore wind energy projects
• Hydropower: Development of small/mini/micro hydel projects of capacities up to 25 MW
• Biomass & Waste-to-Energy: Promotion of biogas, biomass power plants, and biofuels and encouraging the conversion of urban, industrial, and agricultural waste into energy
• Geothermal and Tidal energy: Research, development, and promotion of nascent technologies like geothermal and tidal energy.

Institutes

The MNRE oversees three autonomous bodies that provide technical assistance in research and development: the National Institute of Solar Energy (NISE) in Gurugram, Haryana; the National Institute of Wind Energy (NIWE) in Chennai, Tamil Nadu; and the Sardar Swaran Singh National Institute of Bio Energy (SSS-NIBE) in Kapurthala, Punjab.

Additionally, it includes two public sector undertakings: the Indian Renewable Energy Development Agency (IREDA), a non-banking financial company offering financial support for renewable energy and energy efficiency projects, and the Solar Energy Corporation of India (SECI), which serves as the implementing agency for solar and wind energy initiatives. In 2014, the Association of Renewable Energy Agencies of States (AREAS) was established under MNRE’s administration to facilitate the sharing of knowledge on best practices, technologies, and programs among State Nodal Agencies, the Ministry, and other stakeholders. Notably, AREAS is registered as a General Public Utility Trust/Society and enjoys tax exemption.

Policies and Schemes

1. National Solar Mission: The Jawaharlal Nehru National Solar Mission (JNNSM) or simply, the National Solar Mission (NSM) was launched in January 2010 as a joint initiative by the Government of India and state governments with the aim of promoting sustainable solar power nationwide while addressing India’s energy security challenges. The NSM has been revised twice so far and in 2022, had a target of achieving 100 GW solar photovoltaic (PV) capacity. The Mission’s objective was to position India as a global leader in solar energy by fostering policy frameworks conducive to the widespread deployment of sustainable energy sources in the country. The NSM was implemented in three phases from 2010 to 2022 with distinct targets for installing grid-connected (including rooftop) and off-grid solar PV modules. The SECI, in collaboration with other stakeholders, is responsible for the implementation of various solar-related schemes for the fulfillment of targets under the NSM.³
2. Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects: To reduce high infrastructural expenses and long delays in developing individual solar power projects, the Solar Park scheme was rolled out in December 2014 by the Union Government. The scheme provides Central Financial Assistance (CFA) of up to ₹25 lakh per park for preparing detailed project reports, and up to ₹20 lakh per MW or 30% of project costs, including grid connectivity, to speed up solar project implementation. Fifty solar parks have been sanctioned nationwide under this scheme so far and the scheme will remain active till March 2026.⁴
3. Central Public Sector Undertaking (CPSU) Scheme Phase-II: Approved in 2019, this scheme aims to develop 12,000 MW of grid-connected solar PV projects across India. It provides Viability Gap Funding (VGF) to support government organizations and PSUs. It also features the policy of Domestic Content Requirement (DCR) which mandates the use of domestically manufactured solar PV cells and modules to encourage local production. The Solar Energy Corporation of India Limited (SECI) was the implementation agency for the first two tranches of the scheme. The Indian Renewable Energy Development Agency Limited (IREDA) is the implementation agency for subsequent tranches.⁵
4. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabiyan (PM-KUSUM):Launched in 2019, this scheme aims to reduce diesel use in agriculture and boost farmers’ incomes by offering a central subsidy of 30–50% on installing standalone solar pumps and solarizing grid-connected agricultural pumps. Farmers can also set up grid-connected solar plants of up to 2 MW on barren land and sell power to local DISCOMs at state-regulated rates. Implemented by state government departments, the scheme has three components: Component A targets 10,000 MW of grid-connected solar or renewable energy plants of 5 kW to 2 MW; Component B supports standalone off-grid solar pumps where grid access is lacking; and Component C promotes solarization of individual pumps and feeders.⁶
5. Pradhan Mantri Surya Ghar- Muft Bijli Yojana (PMSG: MBY): In February 2024, the Government of India approved this scheme to boost solar rooftop capacity and enable residential households to generate their own electricity. The scheme subsumed the erstwhile Grid Connected Rooftop Solar (RTS) Programme and is set to run until FY 2026-27. The scheme aims to reshape India’s energy landscape by offering free electricity to households, encouraging solar energy adoption through a significant subsidy covering up to 40% of rooftop solar installation costs. By promoting widespread solar power use, it is set to benefit 10 million households and is anticipated to reduce government electricity expenditures by approximately ₹75,000 crore annually. The scheme has a host of other components including model solar villages and incentives for local bodies and DISCOMs.This initiative underscores the government’s dedication to advancing sustainable energy solutions and ensuring equitable energy access across the country.⁷ 
6. New Solar Power Scheme under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN):In November 2023, the Union Cabinet launched PM-JANMAN, an umbrella scheme aimed at uplifting tribal communities and Particularly Vulnerable Tribal Groups (PVTGs) across eighteen states and one union territory. The initiative, involving seventeen ministries and covering twenty-five critical intervention areas, includes the New Solar Power Scheme, which targets electrifying one lakh un-electrified PVTG households through off-grid solar systems where grid access is impractical, providing LED bulbs and fans at no cost. It also supports solar mini-grids for household clusters in PVTG hamlets, offering Central Financial Assistance (CFA) of ₹50,000 per household, and aims to equip 1,500 Multipurpose Centers with solar lighting, backed by CFA of ₹1 lakh per center. So far, off-grid solar systems have been sanctioned for PVTG households in six states, with the scheme set to run until FY 2025-26.⁸
7. Production Linked Incentive (PLI) Scheme for National Programme on High-Efficiency Solar PV Modules: To boost domestic production of high-efficiency solar PV modules and to achieve manufacturing capacity at par with gigawatt (GW) scale, the Union Government launched the PLI scheme for National Programme on High-Efficiency Solar PV Modules in April 2021. The scheme incentivizes selected solar PV module manufacturers by providing support for five years post-commissioning.The PLI scheme is being implemented in two tranches, with the first overseen by IREDA and the second to be administered by SECI. Employment generation, promotion of sustainable manufacturing practices, and adoption of circular economy approaches are among the broader objectives of the scheme.⁹
8. National Green Hydrogen Mission:With India’s goal of energy independence by 2047 and a Net Zero target by 2070, Green Hydrogen is a key element of the country’s energy strategy. Launched in January 2023, the National Green Hydrogen Mission aims to create a comprehensive action plan to establish India as a global hub for Green Hydrogen production, use, and export. The Mission targets an annual production capacity of at least 5 MMT of Green Hydrogen by 2030, with potential expansion to 10 MMT to meet export demands. It seeks to replace fossil-based fuels and feedstocks with renewable alternatives in sectors such as ammonia production, petroleum refining, and steel manufacturing, as well as in mobility, shipping, and aviation through Green Ammonia and Green Methanol. Additionally, the Mission includes the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, which offers financial incentives for electrolyser manufacturing and Green Hydrogen production.¹⁰
9.  Green Energy Corridor (GEC): A 2012 report by the Power Grid Corporation of India Limited (PGCIL) revealed a dearth of power evacuation and transmission infrastructure near high-potential solar and wind energy sites. This led to the planning of dedicated transmission networks for large-scale renewable energy projects and the GEC scheme commenced in 2015. The initiative seeks to integrate electricity generated from renewable sources, such as wind and solar, with conventional power stations, thereby enhancing grid stability. Additionally, the GEC aims to strengthen India’s energy security, mitigate pollution levels, and support the achievement of national climate targets. The scheme comprises Inter-State as well as Intra-State Transmission Systems (ISTS and InSTS), alongside the establishment of Renewable Energy Management Centres (REMCs) and supporting control infrastructure. Implemented by PGCIL in partnership with the MNRE and the Ministry of Power, the scheme is co-funded by MNRE, the KfW Development Bank Germany, the Asian Development Bank, and the State Transmission Utilities.¹¹
10. National Bioenergy Programme (NBP): Since November 2022, the MNRE has been implementing a comprehensive bioenergy programme in India, aimed at deploying biogas plants in remote, rural, and semi-urban areas. This initiative consolidates previous bioenergy-related schemes under the NBP, effective from April 2021 to March 2026. The programme’s goals include promoting biogas for clean cooking fuel, lighting, and decentralized energy solutions, which contribute to reduction of greenhouse gasses, sanitation improvement, and rural employment creation. It also facilitates the use of biogas slurry as organic fertilizer, empowering women and enhancing rural livelihoods. For the current fiscal year, the MNRE has set a target of distributing 25,000 new small biogas plants among state-level agencies. The MNRE also launched a centralized biogas portal in June 2023 for streamlined application and maintenance processes. Additional support includes CFA provided by IREDA, NABARD, and other RBI approved institutions for new cost-effective and portable biogas plant designs and biogas slurry filtration units to enhance manure quality. The scheme’s implementation is carried out by various state and national agencies, including Agriculture Farmers Welfare and Rural Development Departments of various states, Dairy Cooperatives, State Nodal Agencies (SNAs), Biogas Development and Training Centers (BDTCs), Khadi and Village Industries Commission (KVIC), National Dairy Development Board (NDDB), Amul Dairy, and designated biogas plant developers and vendors. This reflects an integrated approach to sustainable rural energy and waste management.¹²
11. Programme on Energy from Urban, Industrial, and Agricultural Wastes and Residues: The MNRE is implementing this scheme as part of its Waste to Energy initiative. This programme provides CFA for the generation of biogas, Bio-CNG, and biopower from diverse waste sources, including vegetable market waste, slaughterhouse residues, agricultural by-products, and industrial effluents. Additionally, biogas plants produce organic fertilizer, beneficial for agriculture. The programme targets various industries, such as distilleries, paper mills, pulp extraction, dairy, starch, sugar mills, pharmaceuticals, and sewage treatment facilities. The scheme was initially launched in 2018 and has now been incorporated under Phase-I of the National Bioenergy Programme (2021-2026). Key objectives include encouraging biomass gasifiers to supply power to the grid or meet the thermal needs of industries, rice mills, and local communities.¹³
12. National Wind-Solar Hybrid Policy: Issued in May 2018, the Policy was designed to establish a framework for promoting large-scale grid-connected hybrid systems combining wind and solar PV technologies. The policy seeks to maximize the efficient use of resources, infrastructure, and land, facilitating a more stable and reliable grid by mitigating fluctuations in renewable energy generation. Additionally, it encourages the adoption of new technologies for the integrated operation of wind turbine generators and solar PV plants. The Renewable Energy Implementing Agencies (REIAs) that implement the National Wind-Solar Hybrid Policy are: SECI, National Thermal Power Corporation (NTPC) Ltd, Satluj Jal Vigyan Nigam (SJVN) Ltd, and National Hydroelectric Power Corporation (NHPC) Ltd.¹⁴
13. VGF for Offshore Wind Energy Projects: Launched in June 2024, the Viability Gap Funding (VGF) scheme is a key initiative for advancing the National Offshore Wind Energy Policy, introduced in 2015, aimed at tapping into India’s substantial offshore wind energy resources within its exclusive economic zone. The VGF support from the government is intended to lower the power generation costs of offshore wind projects, making them financially feasible for purchase by DISCOMs. Under this scheme, private developers, chosen through a transparent bidding process, will establish the offshore wind projects. Meanwhile, the PGCIL will construct necessary power evacuation infrastructure, including offshore substations.¹⁵

Additional Resources

1. MNRE, Govt. Of India. Annual Report 2023-2024.
2. MNRE, Govt. Of India. Annual Reports.
3. SECI. Jawaharlal Nehru National Solar Mission Towards Building SOLAR INDIA.
   MNRE, GOI. Solar Overview.
4. PIB (2023). 11 Solar Parks with 8521 MW capacity completed and 7 Solar Parks partially completed under the Scheme for “Development of Solar Parks and Ultra Mega Power Projects”: Union Power & NRE Minister Shri R. K. Singh.
   MNRE, GOI. Development of Solar Parks and Ultra Mega Solar Power Projects.
   PIB (2023). Schemes to encourage use of solar energy by households.
   PIB (2017). Schemes launched by the Government to promote Solar Energy in the country.
   PIB (2023). 50 Solar Parks of nearly 37.5 GW sanctioned since 2014; capacity of 10.2 GW established: Union Power and New & Renewable Energy Minister.
5. MNRE, GOI. CPSU Scheme Phase-II (Government Producer Scheme).
6. MNRE, GOI. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM).
   Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan Scheme For Farmers.
   National Portal PM-KUSUM.
7. MNRE, GOI. Grid Connected Rooftop Solar Programme
   Guidelines for PM-Surya Ghar: Muft Bijli Yojana – Central Financial Assistance to Residential Consumers.
   PIB (2024). PM Surya Ghar: Muft Bijli Yojana – Redefining Solar Power and Energy Access.
8. PIB (2024). Cabinet approves Pradhan Mantri Janjatiya Unnat Gram Abhiyan.
   MNRE, GOI. PM JANMAN.  
9. PIB (2023). Government implementing PLI scheme for boosting domestic production of Solar Modules: Union Power & NRE Minister.
   MNRE, Grid Solar Power Division, GOI (2022). Production Linked Incentive Scheme (Tranche II) under ‘National Programme on High Efficiency Solar PV Modules.’ 
10. NATIONAL GREEN HYDROGEN MISSION
    MNRE, GOI. National Green Hydrogen Mission
11. Ministry of Power, GOI. Green Energy Corridor. 
    MNRE, GOI. Green Energy Corridors.
    KfW Development Bank. Green energy corridors deliver electricity.
    Asian Development Bank. Green Energy Corridor and Grid Strengthening Project.
12. PIB (2022). Ministry of New and Renewable Energy initiates National Bio Energy Programme to utilize surplus biomass for power generation.
    MNRE, Biogas Division, GOI (2022). Biogas Programme under the Umbrella Scheme of National Bioenergy Programme.
13. PIB (2023). Government initiates various steps under National Bioenergy Programme to promote and encourage establishment of new waste to energy plants.
    PIB (2024). Year End Review of GOBARdhan: “Waste to Wealth” initiative.
    MNRE, GOI. Waste to Energy Programme.
14. MNRE, Wind Energy Division, GOI (2018). National Wind-Solar Hybrid Policy.
    PIB (2024). Promotion of large grid-connected wind-solar PV hybrid system under National Wind-Solar Hybrid Policy.
15. MNRE, Wind Energy Division, GOI (2024). Scheme Guidelines for Implementation of “Viability Gap Funding (VGF) Scheme for offshore wind energy projects.”
    PIB (2024). Cabinet approves Viability Gap Funding (VGF) scheme for implementation of Offshore Wind Energy Projects.

About the Contributor– Srishtistuti Roy is a researcher at IMPRI, New Delhi. She is an alumna of the Department of International Relations at Jadavpur University. She has recently completed her postgrad in Gender Studies from the University of North Bengal and hopes to pursue a doctorate soon. Her research interests include South Asian political economy, gender & identity politics, development discourse and sustainability, contemporary social movements, and cultural studies.  

Acknowledgements– The author expresses her humble gratitude to Dr. Arjun Kumar, Aasthaba Jadeja, Meenu Mohan and Kirti Ranjan for their valuable insights.

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