The MNRE has sought comments from stakeholders on the JNNSM Phase 2, Batch 2 selection process by 23rd July 2014. It may be recalled that the Ministry had announced its intention to start the bidding process in July/August 2014(details here).
The selection process reverts to the “Bundling” mechanism used in the Phase 1 of the JNNSM. The selected developers will sign a Power Purchase Agreement(PPA) with the NVVN which in turn will enter into a Power Sale Agreement(PSA) with Distribution Companies/ Utilities/ other Bulk Consumers.
Some of the highlights of the draft guidelines are as follows
1. The 1500 MW of solar capacity will be only Solar PV.
2. The 1500 MW capacity will be allotted in two tranches of 750 MW each(first tranche in 2014-15 and second tranche in 2015-16).
3. Time gap between bidding of the two tranches – 6 months.
4. Domestic Content Requirement(cells and modules made in India) has been reduced to one-third of the total capacity – 500 MW out of 1500 MW. In the Batch 1 of the Phase 2 of the mission, the DCR was 50%.
5. Selection process – Minimum size of a plant– 10 MW AC and Maximum size – 50 MW AC; the plants should be in multiples of 10 MW.
6. The maximum capacity that will be allotted to one company will be 100 MW per tranche(or 200 MW of the total 1500 MW).
7. The PPA duration will be 25 years. Payment Security Fund(PSF) with a corpus to cover 3 months payment to be set up by NVVN.
8. Financial Closure – 210 days from the date of signing the PPA
The draft guidelines can be downloaded here.
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