Implementation of Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs) and Government of India Organizations under various Central / State Schemes / self-use / 3rd party sale / merchant sale with Viability Gap Funding under Batch-V of Phase-II of JNNSM

Implementation of the Scheme

2.1     Applicability: The CPSUs  and Government of India organi zations  would  set-up Grid­ connected solar  PV po wer projects  under  various  Central/  State  Schemes/ self-use/ 3rd  party sale/  merchant  sale with Viability  Gap Funding  under Batch-V of Phase-II of JNNSM

2.2        Power    Purchase/Sale   Arrangements:   The CPSUs  and Government of India organizations   like  NTPC,  NHPC,  CIL,  IREDA ,  Indian Rail ways,  etc.  may participate in various  Central / Slate Government  Tenders, from  time to time,  during the period from  2014-15 to 2016-1 7, for sale  of solar  power  to State  Utilities / Discoms or any  other  organization. The  CPSUs  may  also  sign  Power  Purchase Agreements (PPAs)/  Power  Sale  Agreements (PSAs) with State Utilities/ Discoms at tariff determined by Central  Electricity Regulatory Commission (CERC)  or State Electricity Regulatory Commissions (SERCs)  or may develop projects for their own use or for sale of power to a third party at mutually negotiated rates.

2.3.       Domestic Content Requirement and  impact  on tariff:  The Solar  Projects to be set up by  CPSUs /  Government  of  India   Organizations  must  mandatorily procure cells and modules from domestic manufacturers. V GF will be released as per para 4.

Benefit  under this project will not be available where DCR  clause  is already there as tariff would  then have taken care of the DCR clause.

  1. Role of Solar  Energy Corporation of India  (SECI):

The Solar Energy  Corporation  of India (SECI)  will handle the scheme  on behalf of MNRE, for which they will be given a fee of 1% of the VGF disbursed for handling the funds and  managing  the  Scheme.  The  handling  charge to SECI shall  come  within  the overall provision of Rs. 1000 Cr.  As soon as the projects of CPSUs are approved & PPAs are signed and the  CPSUs  decide  to  use domestically  manufactured  cells  and  modules  as mentioned above,  CPSUs  will have an option to approach  SECI for grant of VGF.  SECI will process their application  and give in-principle approval.

4. Release  of VGF 

VGF would  be provided  through  SECI at a fixed rate of Rs. 1 Cr/MW for  projects where domestically  produced  Cells  and  Modules  are  used, and  Rs.50  lakh/MW would  be provided  in cases where domestically  produced modules  are used as per the details given in the Scheme.

Alternatively,  VGF can also be released directly to Domestic  Manufacturers  through SECI  instead  of releasing  the VGF  to CPSUs/  Govermnent  of  India  Organizations, if so required. This will be released to the manufacturer who will be supplyin g cells and modules to the CPSUs/  Government  of India Organizations  for that particular  power plant  based on order placed  by the CPSUs/  Government  of India Organizations/  their EPC contractor.  The release will be made after the project is commissioned and the CPSUs/  Government of India Organizations  make a request for release of VGF to SECI.

In case of any operational  difficulties and in order to ensure timely implementation of the scheme, MNRE will be authorized to make amendments in the Terms & Conditions of the Scheme with the approval of the Minister, NRE without increasing the financial requirements and VGF limits.

The  funds  for  implementation of the above scheme  would  be met  from  Demand No.69-Ministry of New & Renewable Energy;  Major Head: 2810-New & Renewable Energy; 101-Grid  Interactive & Distributed Renewable Power, 01 -Grid Interactive Renewable Power, 04-Solar Power, 31-Grants-in-aid General during 2014-15 (Plan).

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About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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