MNRE regulates guidelines for 12,000 MW CPSU solar project scheme

13 May 2021 CW Team

The Ministry of New and Renewable Energy (MNRE) has amended the guidelines for executing the Central Public Sector Undertaking (CPSU) phase-2 scheme for installing a 12,000-MW grid-connected solar project with viability gap funding (VGF).

According to the newly amended guidelines, power generated by the government producers can be used for the payment of mutually agreed charges, not more than Rs 2.45 per unit. Before this, the mutually agreed usage charges were not more than Rs 2.80 per unit.

However, the maximum allowable VGF was at Rs 55 lakh per MW, being kept at Rs 70 lakh per MW previously. The VGF covers the cost difference of domestically produced solar cells and modules and imported solar cells.

Regarding the project commissioning timelines, the new guidelines say that the solar power projects should be dispatched within 30 months from the date of the letter of award.

To expedite the implementation of the scheme and to offer impetus to domestic solar PV manufacturing, a shorter timeline can also be specified by the MNRE.

Previous guidelines had set projects commissioning timeline within 24 months from the date of the letter of award for projects up to 500 MW, and for projects more than 500 MW capacity, the timeline was 24 months, while the balance capacity timeline was to be commissioned within six months.

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