MNRE to Reduce Minimum Solar Project Size Under VGF Program

February 22, 2017


The Ministry of New and Renewable Energy (MNRE) has proposed amendments to the guidelines for implementation of the Viability Gap Funding (VGF) program, reducing the minimum project size of special category states and union territories to 5 MW. The previously allowed minimum project size was 10 MW. The new amendment will not apply to bids that have already been opened by Solar Energy Corporation of India.

Under the VGF program a total of 7,000 MW of grid-connected solar is expected to be installed; 2,000 MW is to be installed under the National Solar Mission (NSM) Phase-II Batch-III, and 5,000 MW under the NSM Phase-II Batch-IV.

New amendment is open for comments until February 28, 2017. Most of the special category states and union territories have unique topographies making it difficult to construct large scale projects, hence the reduction in minimum project capacity for those states and union territories, stated an official at MNRE.

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