MNRE deletes DCR clause from 5 GW Phase-II Batch-IV VGF scheme

In response to the domestic content dispute with the U.S., India’s Ministry of New and Renewable Energy (MNRE) has deleted all of the domestic content clauses from the National Solar Mission Phase-II, Batch-IV: 5 GW VGF scheme.

February 21, 2018 Sraisth

MNRE deleted Domestic Content Requirement clause from the 5 GW Batch-IV Phase-II solar scheme defined under India's national solar mission.

Image: Press Information Bureau, GoI

India has submitted a statement to the WTO dispute settlement body (DSB), which was revealed in the DSB hearing on January 29, 2018, by the WTO. India stated that it has complied with the DSB ruling and has canceled several projects related to its domestic content requirement (DCR).

Moreover, India requested for the establishment of a panel to settle the disagreement over India’s compliance. However, the U.S. rejected it, and in accordance with the rules, WTO had to defer India’s request.

Today, February 21, in compliance with the DSB ruling, MNRE has announced an amendment in the guidelines for the implementation of a scheme for setting-up of more than 5 GW of grid-connected solar PV power projects with Viability Gap Funding (VGF) under Batch-IV Phase-II of Jawaharlal Nehru National Solar Mission (JNNSM), dated March 14, 2016.

The following shows how the new statement and provision from different clauses of the scheme have been deleted and/or amended, respectively.

Para/Clause Number	Deleted Statement/Amended Provision
1.2 NSM Phase-II, Batch-IV: Over 5 GW VGF Scheme	“Out of total capacity of 5 GW, MNRE may fix some quantity of power to be procured with DCR of cells and modules made in India depending on availability and price.”
1.4 implementation Agency	“To verify compliance of DCR for DCR category.”
3.2 Mechanism of Operation of the VGF Scheme 3.2 (iii) Project Capacity	DCR component is deleted from state-wise allocation of the capacity by SECI.
3.2 (vi) Selection of Projects	“The upper limit for VGF is kept at INR 12.5 million ($193,000)/MW for projects in DCR category.”
3.2 (ix) DCR: MNRE may fix some quantity of power to be procured with DCRs of cells and modules made in India depending on availability and price	Whole paragraph deleted.
3.9 Domestic Content Requirement	Whole paragraph deleted. It had all the main DCRs under the project.
3.10 Selection of Projects under the VGF scheme	No financial and technical bid submission for DCR category anymore.
3.14 Financial Closure/Project Financing Arrangements	“The project developer would also need to specify their plan for meeting the requirement for domestic content.”

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