Rs. 1875 crores earmarked for VGF under phase 2 of JNNSM

The Government of India earlier announced its approval for the implementation of the scheme for setting up 750 MW of solar capacity under the first batch of Phase 2 of the National Solar Mission. An estimated Rs. 1875 crores @ Rs. 2.5 crores per MW has been set aside to fund projects under the VGF mechanism. The funds are to be secured from the National Clean Energy Fund (NCEF) finally dispelling rumours that there is not enough funding available for the second phase of the prestigeous JNNSM to go ahead.
As stated in our earlier blog, the tariff for developers will be fixed @ Rs. 5.45 per kWh (Rs. 4.75 per kWh if AD benefits are availed) with the PPA standing for a duration of 25 years. 375 MW of the total 750 MW has been reserved for projects scheduled to come up using cells/modules manufactured locally while the other 50% of the capacity can use modules sourced from anywhere in the world.
The press release by MNRE can be read in its entirety here.
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