Guidelines for 12000 MW CPSU phase-II solar project scheme amended

The guidelines for application of Central Public Sector Undertaking (CPSU) scheme phase-II for setting up 12,000 MW grid-connected solar projects with viability gap funding has been amended by the ministry of new and renewable energy (MNRE).

As per the new guidelines power produced by the government producers could be used on payment of mutually agreed usage charges of not more than Rs 2.45 per unit. It is worth noting that the earlier mutually agreed usage charges of not more than Rs 2.80 per unit.

Under the new guideline maximum permissible VGF has been kept at Rs 0.55 crore per MW, which was kept at Rs 0.70 crore per MW earlier.

VGF is provided with the objective of covering the cost difference between the domestically produced solar cells and modules and imported solar cells and modules.

Solar power projects have to be commissioned within a period of 30 months from the date of letter of award as per the new guideline. However, in a bid to accelerate the implementation of the scheme and to give impetus to domestic solar PV manufacturing, a shorter timeline can also be specified by MNRE.