Ministry of New and Renewable Energy (MNRE) in its latest notification on 18th Jan 2014, has given guidelines for the implementation of a scheme for the development of 1000 MW of grid connected Solar Power Projects by Central PSU’s and Govt. of India organizations and various central and state schemes with Viability Gap Funding under batch-V Phase-II of JNNSM in a span of 3 years. The Central Financial Incentive (CFA) required is estimated to be 1000 crores.

Solar Energy Corporation of India (SECI) will handle the scheme on behalf of MNRE. SECI will be given a fee of 1% of the VGF disbursed for handling the funds and managing the Scheme.

The Ministry is promoting domestically manufactured solar cells and modules, knowing that the domestic manufacturing capacity is facing tough competition from the foreign players like china and US, which are selling the cells and modules at significantly lower price. The Indian manufacturing capacity is also not enough to meet the demand, which has been a concern for the govt. that resulted in dropping the anti-dumping duties proposed by director general of Anti-dumping.

The Govt. has now taken new steps to promote the domestic manufacturing by giving specific project capacities under certain schemes.

The Scheme Document can be accessed here.