SECI Issues NIT for Implementation of Solar Power Projects with VGF worth 1000 MW

The Solar Energy Corporation of India (SECI) has announced that it has issued a notice with reference to the NIT regarding the Tender for Implementation of 1000MW Grid Connected Solar PV Power Projects by the Government Producers with Viability Gap Funding (VGF) Support for Self-Use or Use by Government or Government Entities (CPSU SCHEME PHASE-II).

The detailed tender document is under preparation and shall be available for download from February 28, 2019, onwards on www.tcil-india-electronictender.com.

Lately, the Cabinet Committee on Economic Affairs (CCEA) has permitted MNRE’s proposal for implementation of the Central Public Sector Undertaking (CPSU) Scheme Phase-ll for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects, by the Government Producers with Viability Gap Funding (VGF) support of Rs 8,580 crore for self-use or use by Government or Government entities, both Central and State Governments.

The 12,000 MW or more capacity of grid-connected solar power projects will be set up by the Government Producers in 4 years period, i.e. 2019-20 to 2022-23, as per the terms and conditions specified in Government Producer Scheme. Thereby, creating an investment opportunity close to Rs 48,000 crores.

In the previous month, The Ministry of New and Renewable Energy (MNRE) issued an order for the implementation of a subset of existing 5 GW Viability Gap Funding (VGF) scheme for setting up of 1 GW of grid-connected solar PV power projects in northeastern states including Sikkim under Jawaharlal Nehru National Solar Mission (JNNSM).

The scheme will be implemented through Solar Energy Corporation of India (SECI), as per MNRE guidelines of the VGF Scheme issued first in 2016. The latest scheme predicts setting up 1 GW of solar photovoltaic power projects on a build, own and operating (BOO) basis by the Solar Power Developers (SPDs) in northeastern states including Sikkim.

Features of Subset of existing 5 GW Viability Gap Funding (VGF) Scheme will be as under:

• This Sub Scheme of 5 GW VGF Scheme will be valid for only NE States including Sikkim.
• The total aggregated capacity under this Sub scheme shall be 1000 MW.
• Bidding would be conducted by SECI with capping the tariff at Rs 3 per unit, with a maximum VGF of Rs.1.0 Crores/MW.