In order to find more ways to bring ease in doing solar and wind power businesses, the ministry of new and renewable energy (MNRE) is exploring alternative mechanisms to reduce the amount of money that developers need to deposit with government agencies for commissioning green power plants.
MNRE has sent a letter to NTPC and Solar Corporation of India (Seci) — the central government agencies which act as the nodal agencies for conducting the auctions — asking them to submit their comments on the feasibility of other arrangements for earnest money deposit (EMD) and payment bank guarantee (PBG) by March 12.
In the letter, reviewed by FE, MNRE proposed that for EMDs and PBGs against renewable energy projects, developers may furnish letters of comfort (LoCs) from the Central government-run green lender Indian Renewable Energy Development Agency (Ireda).
