Allocation of 2000 MW under JNNSM : Phase II, Batch III, Tranche I – Draft guidelines released

If you are like me, the title of this blog would have confused you. Within 2 weeks of releasing the draft guidelines for selection of 3000 MW of solar projects, the MNRE has released one more draft guidelines for selection of 2000 MW of projects. With the MNRE releasing several draft guidelines in quick succession, keeping track of the different batches and tranches is turning out to be a nightmare.
Nightmares aside, what are the differences between the guidelines released 2 weeks back(14 January 2015) and the current one(click here)? Here is my minor attempt at simplification.
1. The previous guidelines were under Phase II, Batch II , Tranche I whereas the latest one, released on 30th January 2015, is under Phase II, Batch III, Tranche I.
2. The total targeted capacity addition under the former(Batch II) is 3000 MW, whereas the total target under the latter(Batch III) is 7000 MW.
3. The previous one was for allocation of 3000 MW in Tranche I of Batch II, whereas the latest one is for allocation of 2000 MW of Tranche I, Batch III
4. The previous one(Batch II) is a “state specific bundling scheme” whereas the latest one(Batch III) is a “state specific VGF scheme”. In the former, NVVN will procure power, whereas under VGF, the power will be procured by the respective states.
Under the latest VGF scheme, ” the tariff payable to the Project developer is fixed at Rs.5.43/ kWh for the initial year and then escalated annually by Rs. 0.05/ kWh for next 20 years, resulting in the maximum allowable tariff of Rs 6.43 / kWh at the end of 21st year. The tariff would thereafter, remain fixed at Rs. 6.43/kWh. The levelized tariff for the term of the Power Purchase Agreement thus becomes Rs. 5.79/kWh.” and “the Project developer will be provided a viability gap funding based on his bid. The upper limit for VGF is kept at 30% of the project cost or Rs.1.0 Cr/MW for open category (Rs. 1.31 Cr./MW for projects in DCR category), whichever is lower.”
In both the cases(bunding and VGF), the minimum project size is 10 MW.
Phew!! That is simple, isn’t it? 🙂
The broad guidelines seem to be fairly similar – both stress on solar parks in the states(though not mandatory) and both have a Domestic Content Requirement(DCR) component. I not going into too much of detail as I run the risk of confusing you more. The links to the guidelines are shared at the beginning of the blog, and in case you missed them, here they are again.
1. Draft guidelines for the “State Specific VGF Scheme” (Batch III) released on 30 January 2015 – Click here.
2. Draft guidelines for the “State Specific Bundling Scheme” (Batch II) released on 15 January 2015 – Click here.


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4 thoughts on “Allocation of 2000 MW under JNNSM : Phase II, Batch III, Tranche I – Draft guidelines released”

  1. phew. that will get confusing. with 100GW plans, guess someone will take the initiative to create a directory – to keep track of tenders released (draft/final), the time-table to keep track. regards

  2. The draft guidelines are not reachable through the links you provided. Getting error msg. Whether they were removed from the original server(s)? Can you please look into it and revive back please? Thanks.

  3. They say that you should have a previous solar project to install a project in JNNSM. Phew isn’t it shocking…Only @ambani’s and birla have right to do it. @DamnFreshers..!!

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