VGF Program Guidelines Amended for Solar Projects

Ministry of New and Renewable Energy (MNRE) has made amendments in guidelines for the implementation of the viability gap funding for solar photovoltaic projects.

Under the National Solar Mission (NSM) Phase-II, Ministry of New and Renewable Energy (MNRE) has made amendments in guidelines for the implementation of the viability gap funding for solar photovoltaic projects.

In the guidelines, the amendment was made in land acquisition clause of the notification that was issued on 3^rd August 2017. It read, “Identification of the 100% land at the time of bid submission and within 7 months of the execution of the PPA, submission of documents/ Lease Agreement to establish possession/ right to use 100 % of the required land in the name of the Solar Power Generator or its Affiliate.”

It further reads “In case the land is in the name of Affiliate, the land should be transferred in the name of Solar Power Generator prior to Scheduled Commissioning Date (SCD). Wherever leasing of private land is involved, the lease should allow transfer of land to the lenders or Procurer, in case of default of the Solar Power Generator.”

However, in the amendment, the clause says, Identification of the 100% land at the time of bid submission and within 7 months of the execution of the PPA, submission of documents/ Lease Agreement to establish possession/ right to use 100 % (hundred per cent) of the required land in the name of the Solar Power Generator or its Affiliate.

“In case the land is in the name of Affiliate, the land should be transferred in the name of Solar Power Generator prior to SCD. Wherever leasing of private land is involved, the lease should allow transfer of land to the lenders or Procurer, in case of default of the Solar Power Generator.”

Similarly, in the financial closure, it says The Solar Power Generator shall attain the financial closure in terms of the PPA, within 12 months from the date of execution of the Power Purchase Agreement. However, if for any reason, the time period for attaining financial closure needs to be kept smaller than that provided in these Guidelines; the Procurer can do the same.

The date for the financial closure in terms of PPA in the earlier notification was 7 months from the date of extension.

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