The UP government has announced a `mini grid policy’ for promoting small power generation units through non-conventional sources in rural areas. Valid for the next 10 years, the policy aims to provide power to 2 crore households without power connection  and ensure minimum requirements like light and fan,  mobile recharging and entertainment.

An official spokesman said the new policy has been formulated in view of steady depletion of conventional fossil fuel  and rise in pollution level due to gas emission by coal-based power plants. To address these, the government has announced the policy for setting up small units churning out power through non-conventional sources.

"Under the policy, small power units generating power upto 500 Kilo Watt will be set up. These will be of two types –one, by the private sector on built, own operate and maintain (BOOM) basis and others with 30 percent subsidy by the state government. The private operator will have to run the unit for 10 years," he said.

The private operator will obtain the land for the unit and it will be binding on operator to provide at least 8 hours of supply to villages and six hours supply to commercial consumers. For eight-hour supply, the operator will be allowed to charge Rs 60 per month on 50 watt load and Rs 120 per month on 100 watt load. The operator will be free to sell the surplus to other consumers.  

Projects to be set up under Mini Grid Policy will get concessions like stamp duty as per UP Industrial policy, 2012 and UP Solar Policy.

The objective is to cover maximum number of rural households with power supply. The cost of providing power to rural areas by setting up low tension power distribution line is prohibitive and also adds to line losses making ventures financially infeasible.

Besides ensuring power at low cost to rural households, it would also help in creating jobs and cuy down on use of fossil fuel in power generation.