Friday, October 04, 2013: The second phase of the Jawaharlal Nehru National Solar Mission project which involves setting up of 750 MW grid-connected solar power projects is underway and has been approved by the Cabinet Committee on Economic Affairs.
As cited on thehindubusinessline.com, the project is going to be facilitated via viability gap funding (VGF) that will receive funding from the National Clean Energy Fund. The total funding requirement for the implementation of the scheme is about Rs 18750 million at the rate of Rs 25 million for each MW.
However, the actual requirement will be based on bid prices. The support is estimated to bring private investment at an estimated Rs 50 billion for setting up of the projects, as stated by the Government in a statement.
The VGF scheme will help in setting up of the 750 MW grid connected solar power projects primarily in the private sector on build, own and operate basis at several locations. This will supplement grid power generation in the country. It will be implemented through the Solar Energy Corporation of India in association with NTPC Vidyut Vyapar Nigam Ltd.
Also, the power generated will be bought by SECI at a fixed levelised tariff of Rs 5.45 per unit for 25 years. It will be sold to distribution companies at a fixed tariff of Rs 5.50 per unit for 25 years.
The projects are going to be selected through the process of open competitive bidding.
