New Delhi, May 21 - In a rare compliment from a UPA Minister for the BJP government in Gujarat, New and Renewable Energy Minister Farooq Abdullah today said the solar power plant atop a water canal in the state has shown the nation the way and it will be replicated by Damodar Valley Corporation.

"Gujarat has shown the way" with the commissioning of the world's first 1 MW canal-top solar power plant in Mehsana district, he said during Question Hour in Rajya Sabha.

The Gujarat project virtually eliminates the requirement to acquire vast tract of land and limits evaporation of water from the 750 meter long canal.

Abdullah said DVC has over 2000 km of canal network on which it wants to mount solar panels that can generated up to 1,000 MW electricity.

"States like Gujarat and Rajasthan have done commendable work in solar power," he said adding his ministry is eager to help states irrespective of which party was in power.

His statement drew loud thumping of desks from Opposition benches with Ravi Shankar Prasad (BJP) congratulating the minister for speaking frankly about the contribution made by states.

"We want to help state governments. We don't discriminate ....Hum sab Hindustani hai...Hindustan bachega to hum bachenge (We all are Indians, if India survives, then only we will survive)," he said, adding, "We want to strengthen the nation."

Abdullah also lauded Rajasthan Chief Minister Ashok Gehlot for the vast network of renewable energy sources including solar and wind power set up in the state.

He said over 979 MW of solar power capacity has been set up in the country, of which 654.8 MW is in Gujarat, 197.5 MW in Rajasthan and 20 MW in Maharashtra.

The tariff has come down from Rs 18 per unit to about Rs 7 a unit, he said adding it will further come down when the second phase of projects come up.

Abdullah said the Centre has exempted equipment for solar projects from import or customs duty as well as excise duty.

Besides, a 10-year holiday from payment of income tax is provided to solar power developers, he said.

The Centre, he said, was targeting 20,000 MW of solar power capacity under the Jawaharlal Nehru National Solar Mission (JNNSM) by 2022.

1,300 MW of grid connected projects will be commissioned by 2013, he said.

Abdullah said his ministry has asked the finance ministry to consider giving 100 per cent financial assistance to North Eastern states as compared to present 90 per cent grant.

A request has also been made to transfer the part of cess on coal that accrues to the new and renewable ministry, to states for setting up transmission lines so that solar and wind power projects are connected. PTI