Acme Energy Solutions plans to set up India's first 100MW solar thermal power plant.

N. Venkataraman, executive vice president of the company's energy solutions division, reportedly said that Acme plans to set up a 100MW solar thermal project either in Rajasthan or Gujarat in about a year. Venkataraman told IANS that the cost of power generated by his company would be among the lowest for solar thermal plants. "The cost of electricity would be around Rs. 8 per unit (US$1 = Rs. 50 approx.), which is among the lowest in the world for such kinds of projects," he reportedly said.

In August this year, the Ministry of New and Renewable Energy, too, had indicated about Acme's plans.

The Ministry has also been suggesting to various Central Ministries and Government departments to maximise the use of solar energy devices and systems at their establishments.

To encourage participation of the private sector for development of solar energy, the Ministry is providing various fiscal and financial incentives which include soft loans to manufactures for technology up-gradation, concessional or nil duty on import of various equipment, exemption of excise duty, accelerated depreciation, generation based incentive for setting up of grid power plants based on solar thermal and photovoltaic technologies etc.

The quantum of subsidy / support being given to the private sector includes: Soft loan at an interest rate of five percent to manufactures through IREDA for technology up-gradation on solar water heating systems;  Up to Rs.10/- per KWh for electricity generated from solar thermal and Rs.12/- per KWh from solar photovoltaic power plants of capacities 1 MW and above.