Implementation of scheme for setting up 1000 MW of Grid Connected Solar PV Power projects by CPSUs and GoI organisations under various Central / State Schemes / self-use / 3rd party sale / merchant sale with Viability Gap Funding under batch

No: ----- Dated: Dec, 10 2014

Implementation of scheme for setting up 1000 MW of Grid Connected Solar PV Power projects by CPSUs and GoI organisations under various Central / State Schemes / self-use / 3rd party sale / merchant sale with Viability Gap Funding under batch – V of Phase-II of JNNSM

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has approved the scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects with VGF (Viability Gap Fund) support of Rs.1000 crore, by CPSUs under various Central/State Schemes, in three years period from 2015-16 to 2017-18. The Scheme will have a mandatory condition that all PV cells and modules used in solar plants set up under this Scheme, will be made in India.

All States and Union Territories are eligible for benefitting under the scheme.

Solar parks will enable development of solar power in remote areas where land is inexpensive. As a transmission system will be developed for the entire Park, developers will not have to set up their own transmission lines. This will not only save money but will also avoid damaging the landscape of the area as only limited transmission lines would be laid.

Further developers would be able to set up projects quickly as they will not have to get statutory and other clearances.

India will emerge as a major solar power producing country as nowhere in the world are solar parks are being developed on such a large scale. The CPSUs and Government of India organisations will participate in various Central/State Government tenders, from time to time for sale of solar power to the State.

The State Government will first nominate the implementing agency for the solar park and also identify the land for the proposed solar park. It will then send a proposal to the Ministry of New and Renewable Energy (MNRE) for approval along with (or later) the name of the implementing agency. The implementing agency may be sanctioned a grant of upto Rs.25 Lakh for preparing a Detailed Project Report (DPR) of the Solar Park, conducting surveys, etc. The DPR must be prepared in 60 days.

Thereafter, application may be made by the implementing agency to Solar Energy Corporation of India (SECI) for the grant of up to Rs. 20 lakhs/MW or 30 percent of the project cost including Grid-connectivity cost, whichever is lower. The approved grant will be released by SECI as per milestones prescribed in the scheme.

Background:

The CPSUs and Government of India organisations like NTPC, NHPC, CIL, IREDA, Indian Railways, etc. are coming forward to set up solar power projects. The scheme has a provision of VGF support of Rs.1000 crore for setting up of Grid-connected solar PV power projects of 1000 MW aggregate capacity to be developed by CPSUs under various Central/State Schemes by using cells and modules made in India. Requisite funds for provision of the VGF support will be made available to MNRE from the National Clean Energy Fund operated by Ministry of Finance.