Viability gap funding approved for 1 GW solar projects in North East

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The scheme for North Eastern states will be implemented through Solar Energy Corporation of India (SECI), as per the 5 GW VGF Scheme guidelines issued by Ministry of New and Renewable Energy (MNRE) on March 14, 2016. It envisages to set up 1 GW solar photovoltaic power projects on build-own-operate basis by solar power developers in North Eastern States including Sikkim, and will be operative during financial year 2018-19.

Main features

SECI would conduct bidding with tariff capped at Rs 3.0 per unit, and a maximum VGF of Rs 1 crore per MW. Minimum size of the project will be 5 MW due to land constraint in North Eastern states. Solar projects must be commissioned within 21 months from the date of signing of power purchase agreements (PPAs).

The funds for this proposal may be disbursed by re-appropriation. VGF will not be given to any private party for private consumption.

All other terms and conditions of the 5 GW VGF Scheme would remain the same.

The subset will be effective from the date of issue of administrative approval along with operational guidelines of 5000 MW VGF Scheme dated March 14, 2016.

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