MNRE Eases Approval Process for CPSU Solar Parks

17 May 2024 CW Team

In a significant move to streamline the approval process for solar park development, the Ministry of New & Renewable Energy (MNRE) has announced exemptions for central public sector undertakings (CPSUs) and their joint ventures from seeking state government committee approval for infrastructure development and operations & maintenance (O&M) charges.

This decision, communicated through an office memorandum, responds to requests from Solar Power Park Developers (SPPDs) to simplify the approval process. Under the new guidelines, CPSUs and their joint ventures can submit their detailed project reports (DPRs) directly to the Solar Energy Corporation of India (SECI), the Indian Renewable Energy Development Agency (IREDA), and the MNRE. These DPRs no longer require vetting by state government committees, streamlining the process considerably.

However, these SPPDs must still obtain approval from their respective boards for charges related to infrastructure development, O&M, land leases, and return on equity, ensuring compliance with MNRE guidelines issued on November 12, 2021.

For state government PSUs, the approval process remains unchanged, requiring DPRs and associated charges to be approved by the state's department of power, energy, or renewable energy. Similarly, private developers of Solar/RE Parks must continue to seek state government committee approval according to the same guidelines.

The office memorandum, issued with the approval of Minister of Power and New & Renewable Energy R.K. Singh, aims to expedite solar park development and facilitate smoother project implementation, promoting rapid growth in India's renewable energy sector.

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