The Ministry of New and Renewable Energy (MNRE) has proposed to fix a tariff of Rs 5.45 per kWhr for solar power projects that would be awarded under the Phase II of the National Solar Mission, according to draft guidelines released by the ministry recently.
Those who want to put up solar power projects will now be asked for bid for ‘viability gap funding’ that would be given by the government.
The government intends to provide viability gap funding for 750 MW of capacity. The selected developers will now work backwards and determine how much of funding they would require from the government in order that they could sell electricity at Rs 5.45 a unit.
Those who bid for the least VGF will be selected for signing the power purchase agreement with government-owned Solar Energy Corporation of India.
