Janaury 12, 2015: Ministry of new and renewable energy (MNRE) India has introduced a new scheme to set up solar power projects by defence establishments. The proposal suggests setting up of 300MW grid connected and off-grid PV power projects with Viability Gap Funding (VGF) under phase two and three of JNSM through 2014-15. Each grid can range between 1MW to 20MW.
The project will cost an estimated of Rs 7.5 billion and will be set up over a period of five years.
The scheme is been introduced with an aim to promote and propagate sustainable growth along with utilising wasteland and rooftops available in defence areas, thus ensuring energy security by installing solar plants. The project will reach out to establishments of Indian army, navy, air force, defence laboratories, PSUs and para military forces. The land can be given consent to use under lease or self-use
In situations when the land along international borders does not belong to the forces then power generation can be used by the defence establishments fully or partly.
In terms of financial support, the VGF scheme will be helping project both as a developer and also as engineering, procurement and construction (EPC) mode. The choice of choosing one or both roles of VGF lies with the forces. While in a developer mode, the project will be handled by VGF which will invest, own and supply the power at a pre-determined tariff of Rs 5.50 per unit under PPA deal, under the EPC mode, the project will be built by VGF and the defence establishments will make the investment. For this, VGF will be released in four instalments.
This scheme also helps in government’s plans to promote domestic solar PV and module manufacturers under the ‘Make in India’ project.
Moreover, excess power generated can be distributed to companies, suggested by government.
