The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal to set up 750-MW grid-connected solar power projects under the second phase of the Jawaharlal Nehru National Solar Mission (JNNSM).
This would be facilitated through viability gap funding (VGF), which would be funded from the National Clean Energy Fund.
Earlier this year, the Government of India announced plans to introduce VGF for grid connected solar power projects for the second phase of JNNSM.
The total VGF requirement for implementation of the scheme is estimated as Rs 1,875 crore at the rate of Rs 2.5 crore for each MW. However, the actual requirement would depend on the bid prices.
The VGF support is estimated to leverage private investment to the tune of Rs 5,000 crore in setting up of the projects, Government said in a statement. VGF support would come from the National Clean Energy Fund (NCEF).
The VGF scheme will facilitate setting up of the 750-MW grid connected solar power projects, in mainly the private sector on build, own and operate basis at various locations.
The approval comes just in time as the Election Commission is about to announce the date for state assembly election in New Delhi in a week or so. Otherwise the Ministry would also have to obtain approval from Election Commission.
The government plans to implement the scheme through the Solar Energy Corporation of India, in close association with NTPC Vidyut Vyapar Nigam Ltd.
The Solar Energy Corporation of India (SECI) will purchase the power generated through the solar scheme at a levelized tariff of Rs 5.45 a unit for 25 years and sold to distribution companies at a fixed tariff of Rs 5.50 per unit for 25 years.
Launched in January 2010, JNNSM has the long term goal of adding 20,000 MW of grid-connected solar power by 2022.