Centre using VGF tool to woo states like West Bengal for its solar mission

Centre is trying to woo states like West Bengal offering viability gap funding to put national solar mission on fast track. Ministry of New Renewable Energy (MNRE) joint Secretary Tarun Kapoor speaking to PTI said “We will offer viability gap funding to the state governments. We will give subsidy to bring down the tariff to Rs . 4.5 per unit for the state government. This should encourage state governments to move ahead.”

Centre felt that there is a need of VGF to boost solar power generation in states where it was less viable compared to sun shine states like Rajasthan where tariff has dropped below Rs.4.5/unit.

Bids would be invited based on the subsidy quantum by bidders who would be offered a tariff of Rs 4.5 a unit plus subsidy in the form of VGF said Kapoor.

Recently tariff based bid for 130MW solar PV power project has witnessed rates hurtled as low as Rs. 4.35/unit.

The target for solar power generation in the state is about 5000MW. However the state seems to be less keen on grid connected solar energy distribution as it wants mega solar project for specific purpose like feeding 100oMW Turga pump storage plant in Purulia.