Nodal agency: Ministry of New and Renewable Energy

Policy brief

The Indian government has issued a new scheme for central public sector companies with a target of 12,000 MW grid connected solar PV capacity by FY 2023. The scheme has a total viability gap funding (VGF) outlay of INR 85.80 billion.

Key highlights

Key highlights Any government department, company or enterprise setting up solar project for captive use would be eligible for assistance under this scheme.
Maximum permissible VGF: INR 5.5 million/ MW (50% on award of EPC contract and remaining on commissioning of the project)
Government producers can either set up projects independently or through distribution companies (DISCOMs).
Implementing agency: Indian Renewable Energy Development Agency (IREDA) 
Total VGF support available: INR 85.80 billion (available as equity capital)
Use of domestically manufactured solar cells and modules is mandatory.
Power needs to be consumed by government or PSU entities.
Power sale price: INR 2.45/ kWh exclusive of any other third-party charge such as wheeling, transmission charges and losses
Project commissioning timeline: 30 months
Government can allocate up to 50 MW capacity to a government entity without any auction at L1 rate of previous auction.