MNRE Appoints IREDA to Handle its CPSU Scheme – II

MNRE has announced the appointment of IREDA as the implementing agency for the ministry’s Central Public Sector Undertaking (CPSU) Scheme Phase-II.

The Ministry of New and Renewable Energy (MNRE) has announced the appointment of the Indian Renewable Energy Development Agency (IREDA) as the implementing agency for the ministry’s Central Public Sector Undertaking (CPSU) Scheme Phase-II. The CPSU Scheme Phase-II is aimed at setting up 12,000-MW grid-connected solar PV power projects under the government producers with VGF support for self-use or by government entities either directly or through discoms.

IREDA will be taking over the task of handling all the bidding for the allocation of solar power projects in the Scheme from the Solar Energy Corporation of India, MNRE announced via new amendments.

“IREDA will now be entrusted with the task of conducting bidding for allocation of solar power projects in the Scheme with Viability Gap Funding (VGF) amount as a bid parameter to select project proponents. The maximum permissible VGF amount will be reviewed time-to-time by MNRE and will be reduced by it if the cost difference comes down,” the ministry issued in its notification.

“The VGF provided under the Scheme can be used by the government producers as their equity in solar projects being set-up under this. If a government producer sets up a solar PV project under the CPSU scheme in a solar park, both CFA as per solar park scheme and VGF under the CSPU scheme will be eligible,” the ministry said.

Under the fresh amendments, the ministry has also lowered the maximum usage charges that need to be paid for securing the power generated by projects under the scheme. The maximum usage charges that can be agreed upon between the two entities has been brought down from Rs 3.50/kWh to Rs 2.80/kWh.

Furthermore, the ministry has also amended the timelines for project commissioning. For solar projects up to 500 MW capacity, the commission timeline has been set to two years or 24 months. For projects, more than 500 MW capacity, 500 MW capacity must be commissioned within 24 months while the remainder must be commissioned in the next 6 months.

It has also been announced that IREDA will also be responsible for dealing with all issues regarding time-extension and dispute resolution on force majeure events.

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