Lok Sabha Question No. 68 (STARRED), answered on 2016-04-28
Subject: Solar Power Plants
Ministry: NEW AND RENEWABLE ENERGY
Asked by: C.R. CHAUDHARY, LAKHAN LAL SAHU

## GOVERNMENT OF INDIA

## MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA STARRED QUESTION NO. 68

TO BE ANSWERED ON 28.04.2016

## SOLAR POWER PLANTS

## *68. SHRI C.R. CHAUDHARY: SHRI LAKHAN LAL SAHU:

Will the Minister of New and Renewable Energy be pleased to state:

- (a) the  number of  solar  power  plants  set  up  and  the  present  status  of  setting  up  of  the ongoing solar power plants along with their installed capacity, State/UT-wise;
- (b) whether  the  Government  proposes  to  introduce  grant/loan  to  promote  use  of  solar energy  in  collaboration  with  the  National  Bank  for  Agriculture  and  Rural  Development (NABARD), if so, the details thereof;
- (c) whether the Government proposes to provide necessary solar energy equipment for implementation of the said scheme and if so, the details thereof;
- (d) the  details  of  proposals  received  by  the  Union  Government  from  various  State Governments including Rajasthan and Madhya Pradesh for setting up of solar power plants and developing solar cities during the  last  three  years  and  the  current  year,  and  the  action taken by the Union Government thereon, State-wise; and
- (e) the details of the guidelines issued by the Union Government to the States for setting up of solar power plants?

## ANSWER

THE MINISTER OF STATE FOR POWER, COAL & NEW AND RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a),(b),(c),(d)&e):

A Statement is laid on the Table of the House.

******

(a): Grid  connected  solar  power  plants  of  6763  MW  capacity  in  total  have  been installed in the country upto 31.3.2016. State-wise capacity of solar plants installed is given at Annexure-I. A capacity of around 10,500 MW has been planned for 2016-17 for which tenders of around 11,100 MW have been awarded.

(b): Yes, Madam. Ministry of New & Renewable Energy (MNRE) is implementing Solar  Lighting  and  small  solar  systems  through  National  Bank  for  Agriculture  and Rural Development (NABARD) and is providing 40% capital subsidy with mandatory loan for installation of solar power packs  of upto 300 Wp to individuals.

(c): MNRE has empanelled suppliers for providing Solar systems under NABARD Scheme and solar energy equipments are already available in the country.

(d): The  Government  has  sanctioned  the  proposals  received  from  various  State Governments in accordance with respective scheme guidelines for setting up of solar power plants and developing solar cities. State-wise details of such projects including solar cities sanctioned during last three years are given at Annexure-II.

(e): For  setting  up  of  solar  power  plants,  the  Government  has  launched  the following Grid Connected solar schemes, the details of which are given at AnnexureIII:-

(i) Scheme  for  Development  of  Solar  Parks  and  Ultra  Mega  Solar  Power Projects,

(ii) Scheme for Development of Solar PV Power Plants on Canal Banks/ Canal Tops.

(iii) Scheme for setting up 300 MW of Grid connected Solar PV Power Projects by Defence  Establishments  under  Ministry  of  Defence  and  Para  Military  Forces  with Viability Gap Funding.

(iv) Implementation of scheme of setting up 1000 MW of Grid- Connected Solar PV Power Projects by Central Public Sector Undertakings with Viability Gap Funding.

(v) Implementation  of  Scheme  for  setting  up  of  15000  MW  of  Grid  connected Solar PV Power Projects by NTPC/NVVN.

(vi) Setting up of 2000 MW Grid connected solar power with Viability Gap Funding through Solar Energy Corporation of India (SECI).

The schemes and the respective guidelines are uploaded on MNRE's website.

*****

## ANNEXURE-I REFERRRED TO IN REPLY TO PART (a) OF LOK SABHA STARRED QUESTION NO. 68 FOR REPLY ON 28.4.2016

## COMMISSIONING STATUS OF GRID CONNECTED SOLAR POWER PROJECTS UNDER JNNSM

| Sr. No.   | State/UT                                  |   Total cumulative commissioned capacity till 31-03-16 (MW) |
|-----------|-------------------------------------------|-------------------------------------------------------------|
| 1         | Andhra Pradesh                            |                                                     572.966 |
| 2         | Arunachal Pradesh                         |                                                       0.265 |
| 3         | Bihar                                     |                                                       5.1   |
| 4         | Chhattisgarh                              |                                                      93.58  |
| 5         | Gujarat                                   |                                                    1119.17  |
| 6         | Haryana                                   |                                                      15.387 |
| 7         | Jharkhand                                 |                                                      16.186 |
| 8         | Karnataka                                 |                                                     145.462 |
| 9         | Kerala                                    |                                                      13.045 |
| 10        | Madhya Pradesh                            |                                                     776.37  |
| 11        | Maharashtra                               |                                                     385.756 |
| 12        | Odisha                                    |                                                      66.92  |
| 13        | Punjab                                    |                                                     405.063 |
| 14        | Rajasthan                                 |                                                    1269.93  |
| 15        | Tamil Nadu                                |                                                    1061.82  |
| 16        | Telangana                                 |                                                     527.843 |
| 17        | Tripura                                   |                                                       5     |
| 18        | Uttar Pradesh                             |                                                     143.495 |
| 19        | Uttarakhand                               |                                                      41.145 |
| 20        | West Bengal                               |                                                       7.772 |
| 21        | Andaman & Nicobar                         |                                                       5.1   |
| 22        | Delhi                                     |                                                      14.28  |
| 23        | Lakshadweep                               |                                                       0.75  |
| 24        | Puducherry                                |                                                       0.025 |
| 25        | Chandigarh                                |                                                       6.806 |
| 26        | Daman & Diu                               |                                                       4     |
| 27        | J&K                                       |                                                       1     |
| 28        | Himachal Pradesh                          |                                                       0.201 |
| 29        | Mizoram                                   |                                                       0.1   |
| 30        | Others(PSU/channel partner )under Rooftop |                                                      58.311 |
| TOTAL     | TOTAL                                     |                                                    6762.85  |

## ANNEXURE-II

## ANNEXURE-II REFERRRED TO IN REPLY TO PART (d) OF LOK SABHA STARRED QUESTION NO. 68 FOR REPLY ON 28.4.2016

## (a) List of Solar Parks approved

|   Sl. No. | State             |   Capacity (MW) | Land identified at                                                                                     |
|-----------|-------------------|-----------------|--------------------------------------------------------------------------------------------------------|
|         1 | Andhra Pradesh    |            1500 | NP Kunta of Anantpuramu & Galiveedu of Kadapa Districts                                                |
|         2 | Andhra Pradesh    |            1000 | Kurnool District                                                                                       |
|         3 | Andhra Pradesh    |            1000 | Galiveedu Madal, Kadapa district                                                                       |
|         4 | Andhra Pradesh    |             500 | Talaricheruvu Village, Tadipathri Mandal, Anathapuramu District of Andhra Pradesh                      |
|         5 | Arunachal Pradesh |             100 | Tezu township in Lohit district                                                                        |
|         6 | Assam             |              69 | Amguri in Sibsagar district                                                                            |
|         7 | Chhattisgarh      |             500 | Rajnandgaon, Janjgir Champa districts                                                                  |
|         8 | Gujarat           |             700 | Radhanesda, Vav, Distt. Banaskantha                                                                    |
|         9 | Haryana           |             500 | Bugan in Hisar district, Baralu and Singhani in Bhiwani district and Daukhera in Mahindergarh district |
|        10 | Himachal Pradesh  |            1000 | Spiti Valley of Lahaul & Spiti District                                                                |
|        11 | Jammu & Kashmir   |             100 | Mohagarh and Badla Brahmana, District-Samba                                                            |
|        12 | Karnataka         |            2000 | Pavagada taluk Tumkur dist.                                                                            |

|   Sl. No. | State          |   Capacity (MW) | Land identified at                                                                                  |
|-----------|----------------|-----------------|-----------------------------------------------------------------------------------------------------|
|        13 | Kerala         |             200 | Paivalike, Meenja, Kinanoor, Kraindalam and Ambalathara villages of Kasargode district              |
|        14 | Madhya Pradesh |             750 | Rewa, MP                                                                                            |
|        15 | Madhya Pradesh |            1000 | Neemuch, Agar and Mandsaur                                                                          |
|        16 | Madhya Pradesh |             500 | Rajgarh and Shajapur                                                                                |
|        17 | Madhya Pradesh |             500 | Chhattarpur and Morena                                                                              |
|        18 | Maharashtra    |             500 | Sakri, Dhule district of Maharashtra                                                                |
|        19 | Maharashtra    |             500 | Dondaicha, district Dhule, Maharashtra                                                              |
|        20 | Maharashtra    |             500 | Taluka Patoda, district Beed, Maharashtra                                                           |
|        21 | Meghalaya      |              20 | West Jaintia Hills & East Jaintia Hills districts                                                   |
|        22 | Nagaland       |              60 | Dimapur, Kohima and New Peren districts                                                             |
|        23 | Odisha         |            1000 | Balasore, Keonjhar, Deogarh, Boudh, Kalahandi and Angul                                             |
|        24 | Rajasthan      |             680 | Bhadla Phase II, Bhadla, Rajasthan                                                                  |
|        25 | Rajasthan      |            1000 | Bhadla Phase III, Bhadla, Rajasthan                                                                 |
|        26 | Rajasthan      |             750 | Villages Ugraas, Nagnechinagar & Dandhu, tehsil Phalodi, dist Jodhpur (450 MW) and villages Lavan & |

| Sl. No.   | State                                                   | Capacity (MW)   | Land identified at                                                                                        |
|-----------|---------------------------------------------------------|-----------------|-----------------------------------------------------------------------------------------------------------|
|           |                                                         |                 | Purohitsar, tehsil Pokaran, dist Jaisalmer (300 MW)                                                       |
| 27.       | Rajasthan                                               | 500             | Bhadla Phase IV, Bhadla, Jodhpur Rajasthan                                                                |
| 28.       | Rajasthan (321MW through support of GoI out of 1500 MW) | 321             | Fatehgarh & Pokaran, Jaisalmer, Rajasthan                                                                 |
| 29.       | Telangana                                               | 500             | Gattu, Mehboob Nagar Distt.                                                                               |
| 30.       | Uttar Pradesh                                           | 600             | Jalaun, Allahabad, Mirzapur and Kanpur Dehat districts                                                    |
| 31.       | Uttarakhand                                             | 50              | Industrial Area, Sitarganj (Phase I), Industrial Area, Sitarganj (Phase II) and Industrial Area, kashipur |
| 32.       | West Bengal                                             | 500             | East Mednipur, West Mednipur, Bankura                                                                     |
| 33.       | TOTAL                                                   | 19400           |                                                                                                           |

## (b) Canal Top and Canal Bank projects approved

State-wise Allocation of 50 MW Canal-Top Solar PV projects

|   Sl. No. | State          | Implementing Agency in the State                                             | Capacity for which in- principle approval has been given (MW)   |
|-----------|----------------|------------------------------------------------------------------------------|-----------------------------------------------------------------|
|         1 | Andhra Pradesh | New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) | 1MW canal-top                                                   |
|         2 | Gujarat        | SardarSarovar Narmada Nigam Limited (SSNNL)                                  | 10MW canal-top                                                  |
|         3 | Karnataka      | Krishna Bhagya Jala Nigam Limited (KBJNL)                                    | 10MW canal-top                                                  |
|         4 | Kerala         | Kerala State Electricity Board                                               | 2MW canal-top                                                   |

|    |               | Limited (KSEB)                          |                                |
|----|---------------|-----------------------------------------|--------------------------------|
| 5  | Punjab        | Punjab Energy Development Agency (PEDA) | 20MW canal-top                 |
| 6  | Uttarakhand   | Uttarakhand Jal Vidyut Nigam Limited    | 1MW canal-top                  |
| 7  | Uttar Pradesh | Uttar Pradesh Irrigation Department     | 6MW canal-top (3.5MW + 2.5 MW) |
|    | Total         |                                         | 50 MWcanal-top                 |

## State-wise Allocation of 50 MW Canal-Bank Solar PV Projects

| Sl. No.   | State          | Implementing Agency in the State                                        | Capacity for which in- principle approval has been given (MW)   |
|-----------|----------------|-------------------------------------------------------------------------|-----------------------------------------------------------------|
| 1         | Andhra Pradesh | Andhra Pradesh Power Generation Corporation Limited (APGENCO)           | 5MW canal-bank                                                  |
| 2         | Gujarat        | SardarSarovar Narmada Nigam Limited (SSNNL)                             | 15MW canal-bank                                                 |
| 3         | Kerala         | Kerala State Electricity Board Limited (KSEB)                           | 1MW canal-bank                                                  |
| 4         | Uttarakhand    | Uttarakhand Jal Vidyut Nigam Limited                                    | 19MW canal-bank                                                 |
| 5         | West Bengal    | West Bengal State Electricity Development Corporation Limited (WBSEDCL) | 10MW canal-bank                                                 |
|           | Total          |                                                                         | 50 MWcanal-bank                                                 |

## (c) List of Selected Solar Cities under 'Development of Solar Cities Programme'

| Sr. No   | State             | Approved Solar Cities                  |
|----------|-------------------|----------------------------------------|
| 1        | Andhra Pradesh    | 1. Vijayawada 2. Narsapur Town         |
| 2        | Assam             | 4. Guwahati 5. Jorhat                  |
| 3        | Arunachal Pradesh | 6. Itanagar                            |
| 5        | Chandigarh        | 8. Chandigarh                          |
| 6        | Chhattisgarh      |                                        |
|          |                   | 9. Bilaspur 10.Raipur                  |
| 7 8      | Gujarat Goa       | 12.Gandhinagar 13.Surat 14.Panaji City |
| 9        | Haryana           | 15.Gurgaon 16.Faridabad                |
| 10       | Himachal Pradesh  | 17.Shimla                              |

| Sr. No   | State           | Approved Solar Cities    |
|----------|-----------------|--------------------------|
|          |                 | 18.Hamirpur              |
| 11       | Karnataka       | 19.Mysore                |
| 11       | Karnataka       | 20.Hubli-Dharwad         |
| 12       | Kerala          | 21.Thiruvananthapuram    |
| 12       | Kerala          | 22.Kochi                 |
| 13       | Maharashtra     | 23.Nagpur                |
| 13       | Maharashtra     | 24.Thane                 |
| 13       | Maharashtra     | 25.Kalyan-Dombivli       |
| 13       | Maharashtra     | 26.Aurangabad            |
| 13       | Maharashtra     | 27.Nanded                |
| 13       | Maharashtra     | 28.Shirdi                |
| 13       | Maharashtra     | 29.Pune                  |
| 14       | Madhya Pradesh  | 30.Indore                |
| 14       | Madhya Pradesh  | 31.Gwalior               |
| 14       | Madhya Pradesh  | 32.Bhopal                |
| 14       | Madhya Pradesh  | 33.Rewa                  |
| 14       | Madhya Pradesh  | 34.Jabalpur              |
| 15       | Manipur         | 35.Imphal                |
| 16       | Mizoram         | 36.Aizawl                |
| 17       | Nagaland        | 37.Kohima                |
| 17       | Nagaland        | 38.Dimapur               |
| 18       | Delhi           | 39.New Delhi (NDMC area) |
| 19       | Orissa          | 40.Bhubaneswar           |
| 20       | Punjab          | 41.Amritsar              |
| 20       | Punjab          | 42.Ludhiana              |
| 20       | Punjab          | 43.SAS Nagar (Mohali)    |
| 21       | Rajasthan       | 44.Ajmer                 |
| 21       | Rajasthan       | 45.Jaipur                |
| 21       | Rajasthan       | 46.Jodhpur               |
| 22       | Tamil Nadu      | 47.Coimbatore            |
| 23       | Telangana       | 48.Mahbubnagar           |
| 24       | Tripura         | 49.Agartala              |
| 25       | Uttarakhand     | 50.Dehradun              |
| 25       | Uttarakhand     | 51.Haridwar & Rishikesh  |
| 25       | Uttarakhand     | 52.Chamoli -Gopeshwar    |
| 26       | Uttar Pradesh   | 53.Agra                  |
| 26       | Uttar Pradesh   | 54.Moradabad             |
| 26       | Uttar Pradesh   | 55.Allahabad             |
| 27       | West Bengal     | 56.Howrah                |
| 27       | West Bengal     | 57.Madhyamgram           |
| 27       | West Bengal     | 58.New Town Kolkata      |
| 28       | Jammu & Kashmir | 59.Leh                   |
| 29       | Puducherry      | 60.Puducherry            |

## (d) State-wise details of projects approved for which funds allocated and released, during last 3 years for grid connected solar rooftops (Rs. in Crore)

| Sl. No.   | State/UTs                         | Year 2013- 14   | Year 2014- 15   | Year 2015 - 16   | Total           |
|-----------|-----------------------------------|-----------------|-----------------|------------------|-----------------|
| Sl. No.   | State/UTs                         | Released amount | Released amount | Released amount  | Released amount |
| 1         | Andhra Pradesh                    |                 | 2.41            | 3.87             | 6.28            |
| 2         | Chhattisgarh                      |                 |                 | 3.60             | 3.60            |
| 3         | Delhi                             |                 |                 | 5.76             | 5.76            |
| 4         | Gujarat                           | 1.03            |                 | 4.50             | 5.53            |
| 5         | Goa                               |                 |                 | 1.44             | 1.44            |
| 6         | Haryana                           |                 |                 | 3.60             | 3.60            |
| 7         | Kerala                            |                 |                 | 4.68             | 4.68            |
| 8         | Madhya Pradesh                    |                 |                 | 1.24             | 1.24            |
| 9         | Odisha                            |                 |                 | 2.88             | 2.88            |
| 10        | Punjab                            |                 |                 | 9.22             | 9.22            |
| 11        | Rajasthan                         |                 |                 | 4.26             | 4.26            |
| 12        | Tamil Nadu                        | 0.51            |                 | 8.23             | 8.74            |
| 13        | Telangana                         |                 |                 | 3.08             | 3.08            |
| 14        | Uttarakhand                       |                 | 0.01            | 22.13            | 22.14           |
| 15        | Uttar Pradesh                     |                 |                 | 5.86             | 5.86            |
| 16        | West Bengal                       |                 |                 | 3.09             | 3.09            |
| 17        | Chandigarh                        | 0.62            | 6.12            | 9.79             | 16.54           |
| 18        | Manipur                           |                 |                 | 0.91             | 0.91            |
|           | Sub- Total                        | 2.16            | 8.54            | 98.13            | 108.84          |
| 19        | PSU/Govt. Departments             |                 |                 | 18.52            | 18.52           |
| 20        | Solar Energy Corporation of India |                 |                 | 128              | 128             |
| 21        | Capacity Building programme       |                 |                 | 2.73             | 2.73            |
|           | Total                             | 2.16            | 8.54            | 247.38           | 258.09          |

(e) State-wise details of standalone solar plants  installed under Off-Grid programme

| Power Plants         | Power Plants      |
|----------------------|-------------------|
| State/UT             | Stand Alone (KWp) |
| Andhra Pradesh       | 3632              |
| Arunachal Pradesh    | 600               |
| Assam                | 1605              |
| Bihar                | 1021              |
| Chhattisgarh         | 22898             |
| Delhi                | 698               |
| Goa                  | 32                |
| Gujarat              | 13576             |
| Haryana              | 2321              |
| Himachal Pradesh     | 1512              |
| Jammu & Kashmir      | 7561              |
| Jharkhand            | 3539              |
| Karnataka            | 4676              |
| Kerala               | 3894              |
| Madhya Pradesh       | 2726              |
| Maharashtra          | 3857              |
| Manipur              | 1241              |
| Meghalaya            | 884               |
| Mizoram              | 1185              |
| Nagaland             | 1292              |
| Orissa               | 567               |
| Punjab               | 1202              |
| Rajasthan            | 15540             |
| Sikkim               | 795               |
| Tamil Nadu           | 7297              |
| Tripura              | 369               |
| Uttar Pradesh        | 6263              |
| Uttarakhand          | 628               |
| West Bengal          | 1126              |
| Andaman & Nicobar    | 167               |
| Chandigarh           | 730               |
| Dadra & Nagar Haveli | 0                 |
| Daman & Diu          | 0                 |
| Delhi                | 571               |
| Lakshadweep          | 1090              |
| Puducherry           | 40                |
| Telangana            | 1833              |
| Others               | 23885             |
| Total                | 140853            |

## ANNEXURE-III REFERRRED TO IN REPLY TO PART (e) OF LOK SABHA STARRED QUESTION NO. 68 FOR REPLY ON 28.4.2016

## DETAILS OF SCHEMES UNDER JNNSM

## (I) Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects.

The  scheme  for  development  of  Solar  Parks  and  Ultra  Mega  Solar  Power Projects has been rolled out by Ministry of New & Renewable Energy on 12-122014.    Government  has  proposed  to  set  up  at  least  25  Solar  Parks  and  Ultra Mega Solar Power Projects targeting over 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15. The capacity of the Solar Parks shall be 500 MW and above. However, smaller parks may be considered in Himalayan Region & other hilly States.

Under the scheme, the Ministry provides Central Financial Assistance (CFA) of Rs.  25  lakh  per  solar  park  for  preparation  of  Detailed  Project  Report  (DPR), conducting surveys, etc. Beside this, CFA of up to Rs. 20.00 lakh per MW or 30% of  the  project  cost,  including  Grid-connectivity  cost,  whichever  is  lower,  is  also provided on achieving the milestones prescribed in the scheme.

## (II) Scheme for Development of Solar PV Power Plants on Canal Banks/ Canal Tops.

The Government has approved the implementation of 'Pilot-cum-Demonstration Project for Development of Grid Connected Solar PV Power Plants on Canal Banks and Canal Tops' on  5 th   December,  2014.  A  target  of  100  MW  Grid  Connected  Solar  PV  Power  Plants  on Canal Banks and Canal Tops (50 MW on Canal Tops and 50 MW on Canal Banks) has been set.

## Implementation Arrangements

1. Eligibility:  State  Power  Generation  Companies/  State  Government  Utilities/  any other State Government Organization/ PSUs/ GoI PSUs or GoI organisations. Proposals from  States  in  Project  mode  will  also  be  acceptable  on  completion  during  2014-15  or later.

2. Scheme  Manager:  The  Scheme  manager  on  behalf  of  MNRE  would  be  Solar Energy Corporation of India (SECI) under the MNRE.   SECI will handle funds to be made available  under  the  scheme  on  behalf  of  GOI,  for  which  they  will  be  provided  service charge of 1% of the funds handled/ routed through them.

3. Mode  of  Operation  of  Scheme:      The  Implementing  Agency  will  submit  the application  /  proposal  for  setting  up  Grid-connected  Solar  PV  Power  Plants  on  Canal Banks/  Canal  Tops  to  MNRE.    MNRE/SECI  will  analyze/  scrutinize  the  application/ proposal and if found appropriate, MNRE will sanction the project. Thereafter, SECI shall release  the  capital  subsidy  of  uptoRs.  3cr./MW  for  Canal  Top  SPV  projects  and  Rs. 1.5cr/MW for Canal Bank SPV Projects.

## Central Financial Assistance

-  Rs.3 crore/MW or 30% of the project cost, whichever is lower, for Canal Top SPV projects  and  Rs.  1.5  crore/MW  or  30%  of  the  project  cost,  whichever  is  lower,  for Canal Bank SPV projects.
-  CFA of upto Rs.225 crore for 100 MW (50 MW on Canal Tops and 50 MW on Canal Banks) to be disbursed over a period of maximum 2 years post sanctioning of the plants as under:
-  upto 40% on sanctioning of the projects.
-  60% on successful commissioning of the projects.
-  Service charge to SECI @1%: Rs.2.25 crore.

(III) Scheme for setting up 300 MW of Grid connected Solar PV Power Projects by Defense Establishments under Ministry of Defense and Para Military Forces with viability Gap Funding under Batch-IV of Phase-II/III of JNNSM.

The Scheme was launched on 07 th  January, 2015.

## Salient Features

- i. A capacity of 300 MW will be set up in various Establishments of Ministry of Defence  i.e.  Establishments  of  Army,  Navy,  Air  Force,  Ordnance  Factory Board,  Defence  Laboratories  and  Defence  PSUs  etc.    Para  Military  Forces would also be covered under this scheme.  Minimum size of the project shall be 1 MW.
- ii. Inter-Ministerial group has recommended NCEF Support of Rs. 750 Cr @ Rs. 2.5 Cr./MW with DCR content.
- iii. The  projects  under  this  Scheme  will  mandatorily  use  solar  cells/modules which are made in India.
- iv. The  aforesaid  Establishments  would  identify  locations  for  developing  solar projects, anywhere in the country including border areas from time to time.
- v. The  Defence  organisations/Establishments  will  be  free  to  own  the  power projects  i.e.  get  a  EPC  contractor  to  build  the  project  for  them  or  get  a developer who makes the investment and supplies power at a fixed tariff of Rs.5.50  per  unit  for  25  years  (or  Rs.  4.75  with  AD).    EPC  has  been recommended by MHA, Planning Commission and MoD)
- vi. The  MoD  or  the  Defence  Organization  would  be  free  to  follow  their  own procurement  systems  or  develop  detailed  guidelines or procedures  for tendering. Tendering for inviting solar project developers to bid for developing projects,  would  be  done  by  the  Defence  Establishments  themselves.    They may also lay down guidelines to cover security aspects related to working in Defence/Paramilitary  Establishments.   They  can  also  take  services  of  SECI on a turnkey basis.
- vii. The  solar  project  developers  will  be  provided  VGF  based  on  the  bid.  The bidders will be selected on the basis of bids for minimum VGF requirement for the  project  with  commitment  to  supply  solar  power  at  Rs.  5.50/KWh  for  25 years.  However, the upper limits of the VGF are as follows:

Category-I: Rs.2.5 Cr./MW  for project capacity upto 5 MW or 30% of the project cost whichever is lower;

Category-II: Rs. 2 Cr./MW for project capacity greater than 5 MW upto 25 MW or 30% of the project cost whichever is lower; and

Category-III:  Rs.  1.5  Cr./MW  for  project  capacity  greater  than  25  MW  or 30% of the project cost whichever is lower.

## (IV) Implementation of scheme of setting up 1000 MW of GridConnected Solar PV Power Projects by CPSUs with Viability Gap Funding under Batch-V of Phase-II of JNNSM.

CPSUs and Government of India organisations participate in various Central/State Government Tenders, from  time  to  time,  for  sale  of  solar  power  to  State  Utilities/ Discoms/  self-use/3 rd   party  sale/merchant  sale.  Such  CPSUs  and  Government  of India organisations are eligible under the scheme.  The Cabinet has approved the Scheme  in  its  meeting  held  on  10 th   December,  2014.    The  Ministry  has  issued Administrative Approval on 16 th  January, 2015.

## Salient Features

- i. Grid-connected  solar  PV  power  projects  of  1000  MW  by  CPSUs  and Government of India organisations.
- ii. Period of Implementation: 2014-15 to 2016-17
- iii. VGF would be provided through Solar Energy Corporation of India (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.
- iv. Alternatively,  VGF  can  also  be  released  directly  to  Domestic  Manufacturers through  SECI  instead  of  releasing  the  VGF  to  CPSUs/Government  of  India Organizations if so, required.  This will be released to the manufacturer who will  be  supplying  cells  and  modules  to  the  CPSU/Government  of  India Organizations  for  that  particular  power  plant  based  on  order  placed  by  the CPSU/Government of India Organization/their EPC contractor.  The release will be made after the project is commissioned and the CPSU/Government of India Organizations makes a request for release of VGF to SECI.
- v. Inter-Ministerial group has recommended NCEF Support of Rs. 1000 Cr.
- vi. 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  Regulators  or may develop projects for their own use or for sale of power to a third party at mutually negotiated rates.
7. (V) Implementation  of  Scheme  for  Setting  up  of  15000  MW  of  Grid connected Solar PV Power Projects under Batch II of Phase II of National Solar Mission (by NTPC/NVVN)

The Cabinet has approved the Implementation of Scheme for setting up of 15,000 MW  of  Grid-connected  Solar  PV  Power  projects  under  National  Solar  Mission through NTPC/ NVVN in three tranches as follows :

Tranche-I :

3,000 MW: 2014-15 to 2016-17

Tranche-II :

5,000 MW: 2015-16 to 2017-18

Tranche-III :

7,000 MW: 2016-17 to 2018-19

In Tranche-I, which will be Batch-II of Phase-II of National Solar Mission, 3000 MW capacity  of  solar  PV  power  plants  will  be  based  on  bundling  of  solar  power (3000  MW)  with  unallocated  thermal  power  (1500  MW)  in  the  ratio  of  2:1  (in  MW terms), for which the required 1500 MW unallocated thermal power has been made available by the Ministry of Power.

## (VI) Setting up of 2000 MW Grid connected solar power with Viability Gap Funding through Solar Energy Corporation of India (SECI).

The  scheme  envisages  setting  up  of  2000  MW  Solar  PV  Projects  by  Solar Project  Developers  (SPDs)  on  'Build,  Own,  Operate'  basis.  The  Solar  Projects  of 2000 MW Capacity under the State Specific VGF Scheme will be set up in the Solar Parks of various states, to be developed through coordinated efforts of Central and State Agencies. As implementation of solar parks have begun recently, it could be possible that Solar Parks in some of the States do not become available soon. For such States, Solar Projects would be allowed to be located outside solar parks with land being provided either by the State Government, or arranged by the Solar Power Developers  (SPDs).A  Viability  Gap  Funding  (VGF)  shall  be  given  to  the  selected SPDs  to  enable  them  to  supply  power  to  SECI  at  a  pre-fixed  tariff.The  Project developer will be provided a viability gap funding based on his bid. The upper limit for VGF is kept at Rs.1.0 Crore/MW for open category (Rs. 1.31 Crore/MW for projects in DCR category).

Selection of the Projects will be through competitive bidding based on the VGF requirement with the provision of reduction in tariff in case of negative VGF sought by bidders. Out of total capacity of 2000 MW, a capacity of 250 MW will be earmarked for bidding with Domestic Content Requirement (DCR).

The tariff  payable  to  the  Project  developer  is  fixed  at  Rs.  5.43/  kWh  for  the initial year and then escalated annually by Rs. 0.05/ kWh for next 20 years, resulting in the maximum allowable tariff of Rs 6.43 / kWh at the end of 21st year. The tariff would thereafter, remain fixed at Rs. 6.43/kWh. The levelized tariff for the term of the Power Purchase Agreement thus becomes Rs. 5.79/kWh.

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