The government estimates that the scheme would bring in ₹48,000 crore ($6.75 billion) in investments and create around 180,000 jobs across industries.
The Indian government has allocated ₹8,580 crore ($1.2 billion) for development of 12 GW of solar power capacity across the country.
The Ministry of New and Renewable Energy (MNRE) had proposed a plan to provide financial support for implementation of 12 GW of solar power capacity through government-owned companies. The cabinet committee on economic affairs approved the plan earlier this month.
Under this scheme, the money shall be disbursed as viability gap funding to project developers, according to Clean Technica.
The viability gap funding scheme will be implemented in a manner similar to any other scheme — through reverse auctions. Instead of bidding for the lowest tariff, project developers shall bid for the lowest capital cost support required to set up projects.
Developers to use Indian equipment to set up projects
In addition, the government has mandated that all projects under this scheme shall use solar cells and modules manufactured in India. This is an effort to boost domestic manufacturing of solar cells and modules.
As the power generated from these projects shall be used by the government itself or government entities, the obligation to use domestically manufactured equipment would stand the test of WTO norms.
The government estimates that the scheme would bring in ₹48,000 crore ($6.75 billion) in investments and create around 180,000 jobs across industries.
