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One Crore per Mw for Solar Units Set Up by the PSUs & Cenrtal Departments
Jun 29, 2015

To boost the country’s energy security, the government has decided to give a push to solar power generation by roping in public sector units and Central departments and ministries. The government has asked them to set up 1 MW solar power plant each on their rooftops or land for which they would be given viability gap funding of Rs 1 crore per MW.

Key Features

  • The projects have to be implemented by 2017 and the PSUs and ministries would be free to use the power so generated for either self-use or sell it to third party or discoms. 

  • The incentives are being given under the scheme to set up 1,000 MW of grid-connected solar PV power project to give fillip to generation of solar power, which will help in promoting ecological and sustainable growth while meeting India’s energy needs.

  • The viability gap funding (VGF) will be given in two tranches—50 per cent on successful commissioning of the full capacity of the project and the rest after one year of successful operation of the project.

  • For encouraging domestic manufacturers, the government will give VGF of Rs 1 crore/MW if the cells and modules are procured from domestic source while it will give Rs 50 lakh/MW if only the modules are procured from the domestic source.

  • The PSUs such as NTPC, NHPC, CIL, IREDA, and railways would be allowed to participate in Central or state government tenders from time to time up to 2016-17 for selling solar power to state utilities, discoms or any other organisation. 

  • They will also be allowed to sign power purchase agreements and power sale agreements with state utilities and discoms at tariff determined by the Central or state regulators.

  • They can also develop the projects for their own use or for sale of power to a third party at mutually negotiated rates.

  • The VGF will be provided through Solar Energy Corporation of India (SECI), which will be given a fee of one per cent of the VGF disbursed for handling the funds and managing the scheme. 

  • If the project fails to generate any power continuously for any year within the 25 years or the major assets are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis.

  • The mission has set a target of deploying grid-connected solar power capacity of 20,000 MW by 2022 to be achieved in three phases—first phase up to 2012-13, second phase by 2017 and the third phase by 2022.

The project falls under the Jawaharlal Nehru National Solar Mission to meet the energy demand and tackle challenges of climate change.


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