Cabinet clears over 5,000 MW of grid-connected solar PV power projects

The Cabinet Committee on Economic Affairs (CCA), chaired by Prime Minister Narendra Modi on Wednesday approved the setting up over 5,000 MW of grid-connected solar PV power projects

The projects, to be implemented on build, own and operate basis, will involve total investments of about Rs30,000 crore.

The projects will be implemented by Solar Power Developers (SPDs) with viability gap funding (VGF) under Batch-lV of Phase-ll of the Jawaharlal Nehru National Solar Mission (JNNSM).

This would help in creating additional 5,000 MW capacity of Grid-connected solar PV power generation projects in four tranches of each 1,250 MW capacity over the next four financial years, viz. 2015-16, 2016-17, 2017-18 and 2018-19.

These projects are expected to generate employment for about 30,000 people in rural and urban areas while effecting reduction of about 8.525 million tonnes of CO2 emissions into environment every year.

The tenders will be state-specific based on the demand from particular state and beneficieries will include states / union territories / discoms / state utilities.

Installation of 5,000 MW solar PV plants will generate about 8.30 billion units per year, which will cater to power requirements of nearly 2.5 million households.

The estimated requirement of funds to provide VGF for 5,000 MW capacity solar projects is estimated at Rs5,050 crore (Rs1.00 crore per MW). This includes handling charges to Solar Energy Corporation of India (SECI)  at the rate of 1 per cent of the total grant disposed and Rs500 crore for payment security mechanism for all three VGF schemes of 750 MW, 2000 MW and 5,000 MW.