Implementation of the Scheme
2.1 Applicability: The CPSUs and Government of India organi zations would set-up Grid connected solar PV po wer projects under various Central/ State Schemes/ self-use/ 3rd party sale/ merchant sale with Viability Gap Funding under Batch-V of Phase-II of JNNSM
2.2 Power Purchase/Sale Arrangements: The CPSUs and Government of India organizations like NTPC, NHPC, CIL, IREDA , Indian Rail ways, etc. may participate in various Central / Slate Government Tenders, from time to time, during the period from 2014-15 to 2016-1 7, for sale of solar power to State Utilities / Discoms or any other organization. The CPSUs may also sign Power Purchase Agreements (PPAs)/ Power Sale Agreements (PSAs) with State Utilities/ Discoms at tariff determined by Central Electricity Regulatory Commission (CERC) or State Electricity Regulatory Commissions (SERCs) or may develop projects for their own use or for sale of power to a third party at mutually negotiated rates.
2.3. Domestic Content Requirement and impact on tariff: The Solar Projects to be set up by CPSUs / Government of India Organizations must mandatorily procure cells and modules from domestic manufacturers. V GF will be released as per para 4.
Benefit under this project will not be available where DCR clause is already there as tariff would then have taken care of the DCR clause.
- Role of Solar Energy Corporation of India (SECI):
The Solar Energy Corporation of India (SECI) will handle the scheme on behalf of MNRE, for which they will be given a fee of 1% of the VGF disbursed for handling the funds and managing the Scheme. The handling charge to SECI shall come within the overall provision of Rs. 1000 Cr. As soon as the projects of CPSUs are approved & PPAs are signed and the CPSUs decide to use domestically manufactured cells and modules as mentioned above, CPSUs will have an option to approach SECI for grant of VGF. SECI will process their application and give in-principle approval.
4. Release of VGF
VGF would be provided through SECI at a fixed rate of Rs. 1 Cr/MW for projects where domestically produced Cells and Modules are used, and Rs.50 lakh/MW would be provided in cases where domestically produced modules are used as per the details given in the Scheme.
Alternatively, VGF can also be released directly to Domestic Manufacturers through SECI instead of releasing the VGF to CPSUs/ Govermnent of India Organizations, if so required. This will be released to the manufacturer who will be supplyin g cells and modules to the CPSUs/ Government of India Organizations for that particular power plant based on order placed by the CPSUs/ Government of India Organizations/ their EPC contractor. The release will be made after the project is commissioned and the CPSUs/ Government of India Organizations make a request for release of VGF to SECI.
In case of any operational difficulties and in order to ensure timely implementation of the scheme, MNRE will be authorized to make amendments in the Terms & Conditions of the Scheme with the approval of the Minister, NRE without increasing the financial requirements and VGF limits.
The funds for implementation of the above scheme would be met from Demand No.69-Ministry of New & Renewable Energy; Major Head: 2810-New & Renewable Energy; 101-Grid Interactive & Distributed Renewable Power, 01 -Grid Interactive Renewable Power, 04-Solar Power, 31-Grants-in-aid General during 2014-15 (Plan).
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