MNRE Again Amends Guidelines for Viability Gap Funding

Earlier, SECI had the power to delay the project by three months in such situations and any extension beyond three months had to be approved by the ministry.

The ministry of New and Renewable energy has yet again amended the guidelines which it issued earlier regarding setting up of solar parks of more than 2 GW of capacity with viability gap funding (VGF).

According to the amendment published on the website of New and Renewable Energy Ministry, in case of a delay in land allotment or if there is a delay in establishing connectivity to the grid, then the Solar Energy Corporation of India (SECI), will have the autonomy and the authority to extend the date of financial closure and the date of commissioning without having any financial implication.

Earlier, SECI had the power to delay the project by three months in such situations and any extension beyond three months had to be approved by the ministry.

However, if SECI is the developer of the solar park then the approval has to come from Ministry of New and Renewable Energy.

This is the fourth time the  VGF scheme has been amended by the renewable energy ministry.

In June, the ministry struck off a clause which mandated registration with state model agency even for projects implemented by SECI. This was the first time the ministry had amended the 5 GW solar programs which was launched under the phase four of the National Solar Mission.