The Centre has offered a viability gap support of ₹70 lakh per MegaWatt (MW) for solar projects that will be built using domestically sourced cells and modules. This support will be implemented through the Central Public Sector Undertaking (CPSU) Scheme Phase-ll.
“This works out to a support of around 50 paise per unit for the projects bid out by public sector undertakings (PSUs). Under the scheme, PSU companies (like NTPC, NHPC or NLC) will first compete on the quantum of Viability Gas Funding (VGF) support. They will have to implement a solar power project that uses only domestically produced cells and modules,” a senior MNRE official told BusinessLine.
Under the scheme approved by the Cabinet Committee on Economic Affairs recently, the Centre aims to set up 12,000-MW grid-connected Solar Photovoltaic (PV) power projects by the government producers. A VGF support of ₹8,580 crore for self-use or use by Government or Government entities, both Central and State Governments has been approved for the same.
