The Cabinet Committee on Economic Affairs has approved the implementation of scheme for setting up 750-MW grid-connected solar power projects under the second phase of the Jawaharlal Nehru National Solar Mission. This would be facilitated through viability gap funding (VGF), which would be funded from the National Clean Energy Fund.

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. The actual requirement will, however, depend on the bid prices. This 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.

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, which will help supplement grid power generation in the country.

The scheme will be implemented through the Solar Energy Corporation of India in close association with NTPC Vidyut Vyapar Nigam Ltd.

The power generated shall be purchased by SECI at a fixed levelised 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.

The selection of projects would be done through a process of open competitive bidding.

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