IREDA to handle CPSU Scheme Phase-II: MNRE
On April 13, 2020 The Ministry of New and Renewable Energy (MNRE) on its behalf in the amended clause has appointed the Indian Renewable Energy Development Agency Limited (IREDA) as the implementing agency to handle the Central Public Sector Undertaking (CPSU) Scheme Phase-II & all issues regarding the time-extension and dispute resolution on inevitable events.
Key Points
i.IREDA will conduct bidding for solar power projects allocation in the Scheme with Viability Gap Funding (VGF) amount as a bid parameter to select project proponents. MNRE will timely review the maximum permissible VGF amount & will reduce if the cost difference comes down.
ii.In Case of the existing clause, the Solar Energy Corporation of India (SECI) handled the scheme on behalf of the ministry.
iii.The VGF is provided under the scheme with the aim of covering the cost difference between locally manufactured and imported solar cells and modules & can be used by the government producers as their equity in solar projects is set-up under this.
iv.If a government producer sets up a solar PhotoVoltaic (PV) project under the scheme in a solar park, both Central Financial Assistance (CFA) as per solar park scheme and VGF under the CPSU scheme will be eligible.
Major Amendments
- In regard to the timelines for commissioning of solar projects, the existing clause provides a period of 18 months from the date of the letter of award, whereas the amended clause, projects up to 500 Mega Watt (MW) are commissioned within 24 months and for projects with a higher capacity should commission the balance capacity in the next 6 months.
- In case of power produced that can be used on payment of usage charges will be not more than Rs 2.80 per unit & was Rs 3.50 per unit in the existing clause.
- A new clause has been added to the scheme, which will permit IRDEA to sanction solar PV projects under the CPSU Scheme of up to 500 MW to any government entity at the L1 rate found in the most recent bidding round, within 4 months of the last bid without the need for the entity to participate in it.
About CPSU Scheme Phase-II:
It aims to set up 12,000 MW grid-connected solar PV power projects under the government producers with the VGF support for self-use or by government entities either directly or through discoms (distribution companies).