Monday, October 07, 2013: The Cabinet Committee on Economic Affairs has granted approval for the execution of a scheme for the development of 750 megawatt (MW) grid-connected solar PV power projects under the second phase of the Jawaharlal Nehru National Solar Mission (JNNSM) with viability gap funding (VGF) support from the National Clean Energy Fund (NCEF).
The total VGF requirement for execution of the scheme is believed to be Rs 18,750 million at the rate of Rs 25 million per MW. According to a statement from the press information bureau (PIB), this VGF support is believed to power private investment to the tune of Rs 50000 million in setting up of the projects.
The VGF scheme is likely to facilitate setting up of the 750MW grid connected solar power projects, primarily in the private sector on build, own and operate (BOO) basis at different locations. This will help improve grid power generation in the country.
The scheme will be applied through the Solar Energy Corporation of India in close alliance with NTPC Vidyut Vyapar Nigam Limited (NVVN). The power produced shall be bought by SECI at a fixed tariff of Rs 5.45 per kWh for 25 years and sold to keen state utilities/ discoms at a fixed tariff of Rs 5.50 per unit for 25 years.
The selection would be done through a process of open bidding for their VGF requirement.
