The Cabinet Committee on Economic Affairs (CCEA) on 17 June 2015 approved setting up of over 2000 MW of Grid-Connected Solar PV Power Projects under Batch-III of Phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM).
The project will be developed on Build, Own and Operate basis by Solar Power Developers (SPDs) with Viability Gap Funding (VGF). The total investments expected under this scheme is about 12000 crore rupees and the VGF is estimated at 2100 crore rupees.
The requisite funds for provision of the VGF support will be made available to MNRE from the National Clean Energy Fund (NCEF).
The VGF scheme will be implemented by solar power developers through transparent competitive bidding to provide solar power at a pre-defined tariff of 5.43 rupees per kWh for the first year, with escalation of 5 paisa per kWh each year till the tariff reaches the level of 6.43 rupees per kWh.
The VGF is to be disbursed in six trenches; 50 percent after commissioning and balance 50 percent at the rate of 10 percent at the end of each year subsequently for the next 5 years
The overall effort is to continuously reduce Government financial support for grid connected solar power as the prices of solar power comes down.
This project will result in:
• Creation of additional 2000 MW capacity of Grid-connected solar PV power generation projects
• Generation of about 3320 million units per year, which will cater power to almost one million Households
• Employment generation of about 12000 people in rural and urban areas
• Reduction of about 3.41 Million tonnes of CO2 emissions into the environment every year
Implementation of Scheme
• The Scheme will be implemented by Solar Energy Corporation of India (SECI) as per the guidelines of Union Ministry of New and Renewable Energy (MNRE).
• SECI will prepare necessary bidding documents for inviting the proposals for setting up of projects on a competitive bidding through e-bidding and will enter into Power Purchase Agreement (PPA) with the selected developers and the Power Sale Agreement (PSA) with the buying entities.
The Jawaharlal Nehru National Solar Mission (JNNSM) was launched in January 2010 by the Union Government with a target to setup 20000 MW of grid connected solar power by 2022, which was revised to 100000 MW on 17 June 2015.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
What: Approved by CCEA
When: 17 June 2015