3.6.6 CPSU SCHEME PHASE-II FOR SETTING UP 12,000 MW GRID-CONNECTED SOLAR PHOTOVOLTAIC (PV) POWER PROJECTS BY CPSUS/ STATE PSUS/ GOVERNMENT ORGANISATIONS, WITH VIABILITY GAP FUNDING (VGF) SUPPORT FOR SELF-USE OR USE BY GOVERNMENT/ GOVERNMENT ENTITIES, EITHER DIRECTLY OR THROUGH DISTRIBUTION COMPANIES (DISCOMS)
- Government of India, through Ministry of New & Renewable Energy (MNRE), on 05.04.2019, has approved Implementation of CPSU Scheme Phase-II for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by CPSUs/ State PSUs/ Government Organisations, with Viability Gap Funding (VGF) support over 4 years 2019-20 to 2022-23 for self-use or use by Government/ Government entities, either directly or through Distribution Companies (DISCOMS).
- The VGF fund requirement over the four years 2019-20 to 2022-23 will be Rs.8580 crore, subject to     a maximum of Rs.0.7 crore/MW, to be decided through bidding amongst Government organizations. The VGF content will be reviewed by MNRE, for downward revision if required. The savings thereby achieved is to be used for additional capacity.
- Usage Charge: To be mutually agreed between Government organizations producing and consuming, subject to limit of Rs.3.50/unit.
- Domestic Content Requirement (DCR): both Solar cells & modules to be domestically manufactured and MNRE can prescribe DCR for upstream components also such as domestically manufactured wafers/ ingots/ polysilicon or for higher efficiency cells.
- Total Investment envisaged: Cost of the project: Rs.48,000 crore for 12,000 MW capacity, @ Rs.4 crore/MW.
- Implementation Agency: Solar Energy Corporation of India Limited (SECI).
- Role of SECI: SECI will handle the Scheme, on behalf of MNRE, by way of Bidding on VGF among prospective Government Producers; Scrutiny of project proposals for WTO compliance; Project progress monitoring including site inspection; Ensuring compliance of Domestic Content Requirement (DCR) by way of site inspection/ field visits; and handling of funds under the Scheme. For these activities, SECI will be given a fee of 1% of VGF disbursed.
- The Scheme empowers MNRE to
- increase the scope of DCR to include wafers, ingots & polysilicon or higher efficiency cells/modules;
- empowers MNRE to reduce VGF if cost difference comes down
- to make amendments or relaxation in provisions of the Scheme with no increase in fund requirement and VGF limit.