The Ministry of New and Renewable Energy (MNRE) has proposed
to the guidelines for the implementation of Defense Viability Gap Funding (VGF)
Program. The fixed tariff for these projects has been reduced to Rs.4.50 (~$0.06735)/kWh
from the previous Rs.5.50 (~$0.8232)/kWh.
The upper limit of VGF has been reduced to Rs.0.011 billion
($164,637)/MW for all project sizes. Earlier, a different VGF rate was provided
for different project sizes:
- Category I: Rs.25 million (~$374,176)/MW for
projects of up to 5 MW
- Category II: Rs.20 million (~$299,341)/MW for
project capacity ranging from a minimum of 5 MW to a maximum of 25 MW
- Category III: Rs.15 million (~$224,506)/MW for project
capacity more than 25 MW
the Defense VGF Program, 347 MW of solar
projects have been approved compared to the set target
of 300 MW.