Guidelines for Selection of 750 MW New Grid Connected Solar Power Projects Under Phase-2, Batch-I

    In the Phase 1 of the Mission, 950 MW solar power projects were selected in two batches (batch-I during 2010-11 and batch-II during 2011-12) through a process of reverse bidding. This was largely based on the option of Bundling Scheme and on GBI option to some extent.  In Phase-II Batch-I of JNNSM, the option of “Viability Gap Fund” Scheme has been selected over reverse bidding.

Operation Guidelines of Viability gap funding under phase 2 batch 1 of JNNSM

·         The developer will be provided a viability gap fund based on his bid. The upper limit for VGF is 30% of the project cost or Rs.2.5 Cr. /MW, whichever is lower.

·         The VGF will be released in following manner

1.       25% at the time of delivery of at least 50% of the major equipment at the site and after inspection by a Committee to be constituted by MNRE. In case the inspection is taking time, SECI may release the VGF due on self-certification by the developer against BG of equivalent amount.

2.      50% on successful commissioning of the full capacity of the plant.  The project’s commissioning will be declared by a Committee to be constituted by MNRE.  The project would be considered as Commissioned if energy has flown into the grid after the entire plant equipment is installed and connected

3.      Balance 25% after one year of operation meeting requirements of generation.

·         The tariff to be paid to the developer is fixed at Rs.5.45 per kWh. This tariff will remain firm for 25 years project period.  In case benefit of accelerated depreciation is availed for a project, the tariff will get reduced by 10% to Rs.4.95 per kWh in line with CERC regulations.

·         The developer has to put his own equity of at least Rs.1.5 Cr. /MW and the remaining amount can be raised as loan from any source by the developer.

·         If the project fails to  generate any power continuously  for 1 year  within 25 years or its assets are sold or the project is dismantled  during the tenure of the project,  SECI will have a right to claim assets equal to the value of VGF granted and paid

 Project Implementation Schedule for Solar PV Projects

Time line for Selection of Solar PV Projects given below:

Chronicle order	Event	Date
1	Notice for request of selection	Zero date
2	Submission of  applications  and Techno-commercial bid opening	30 days from issue of (RFS)(zero date+30 days)
3	Short-listing of Bidders based on Techno-commercial eligibility and opening of Finance Bid	Within  30  days from receipt of  response to  (RFS)  (zero date + 60 days)
4	Evaluation of Financial bids and issue of letter of intent	Within  90  days from opening financial Bids  (zero date + 90 days)
5	PPA Signing	Within 30 days from the date of issue of letter of intent
6	Financial closure of the project	6 months from the date of signing of PPA
7	Commissioning of the Project	13 months from the date of signing of PPA