MNRE considers Viability Gap Funding (VGF) for grid connected solar power projects

The fact that  over 50,000 direct jobs are estimated to have been created in the last three years in off-grid & other applications in the New & Renewable Energy Sector in India , leads the Indian government  to consider new incentives to attract private investors for new solar projects.

For the 2nd phase of Jawaharlal Nehru National Solar Mission (JNNSM), a model of Viability Gap Funding (VGF) for grid connected solar power projects has been envisaged. For wind energy, no new funding model is currently proposed. Under the 1st phase of Jawaharlal Nehru National Solar Mission (JNNSM), the Ministry adopted a model of reverse auction based on discounts offered  on CERC tariffs for selection of solar power projects. A Generation Based Incentive (GBI) for wind energy projects was available up to 31.03.2012. It is envisaged that the incentive would be continued for the 12th Plan. GBI was also provided on a limited scale for small grid-connected solar power projects under the Rooftop PV and Small Solar Power Generation Programme (RPSSGP) of JNNSM Phase-1.  

It is estimated that employment for nearly 40 people is generated during erection and commissioning of a 1-2 MW PV Project. This number increases by approximately 15 for every additional 1 MW capacity. In the case of solar thermal projects, it is estimated that up to 500 personnel are employed in a 20 MW capacity power project. In last three years 419.21 MUs (Upto Jan. 2013) of Solar Energy has been generated. At the O&M stage, as per rough estimates, one to two persons are required per MW depending on project size.