The Commerce and Industry Ministry is preparing a detailed report proposing fiscal and non-fiscal incentives to push mega solar power projects in the country, a senior official said.
The report will be finalised by the month-end and will be submitted to the Cabinet Secretariat.
The report, which is under an inter-ministerial consultation, would propose incentives mainly for big solar power projects (above 2000-3000 MW).
It may include a complete eco-system for solar projects such as contours of power purchase agreement, grid connection, land to put solar panels and manufacturing of equipment.
"The eco-system will have details from the first stage to the last stage," the official said.
The ministries involved in the process include Ministry of New and Renewable Energy, Power and Finance.
The government has an ambitious target to raise the solar power generation capacity by five times to 1,00,000 MW by 2022, which will entail an investment of around Rs 6 lakh crore. The decision aims to create clean and sustainable energy source in the country.
With this ambitious target, India will become world's one of the largest green energy producers, surpassing several developed countries.
The move comes at a time when The World Trade Organisation (WTO) has ruled against India in a dispute with the United States over its solar power programme.
The US alleged that India's programme appears to discriminate against the US solar equipment by requiring solar energy producers to use locally manufactured cells and by offering subsidies to those developers who use domestic equipment.