PV Magazine has reported that only half of the projects allocated under the Jawaharlal Nehru National Solar Mission (JNNSM) have achieved financial closure and the remaining Power Purchase Agreements stand cancelled. Documented proof of financial closure is required by the end of July 2011.
According to the MNRE, approximately half the projects failed to achieve financial closure by the given deadline. One senior MNRE official said that only 17 photovoltaic projects and two concentrated solar power (CSP) projects provided financial closure details. A total of 30 photovoltaic projects, worth 150 megawatts, and 7 CSP projects, worth 470 megawatts were selected in the Phase 1 of JNNSM.
The developers who were unable to achieve financial closure will be allowed to reapply and the cancelled PPAs will add back to the pool in Phase 1 Part 2. This failure in achieving financial closure will have a ripple effect throughout opportunistic solar developers who were looking to make a quick buck.
Also refer to the post of the article by The Hindu in which the NVVN CEO has mentioned that the 500MW of projects have achieved financial closure