The Solar Energy Corporation of India (SECI) has released Request for Selection (RfS) documents for the phase 2 of National Solar Mission, which targets installation of 750 MW of solar power projects. Rs. 1875 Cr. (USD 306 million approx.) have been approved for Viability Gap Funding (VGF).
- There will be separate bid for projects to be installed with domestic content and for projects which can use foreign supplies.
- The duration of power purchase agreement will be 25 Years @ Rs. 5.45 per kWh. (The tariff will be Rs. 4.75 /kWh in case Accelerated Depreciation(AD) benefit is claimed).
- Timeline: Last date of bid submission: 28th December 2013, 10:30 am. Bids will be opened 2 hours after the deadline. Financial closure has to be within 120 days of signing the PPA. The project has to be commissioned within 13 months of signing the PPA.
- Viability Gap Funding (VGF): upper limited for claiming VGF: 30% of the project cost or Rs.2.5 Crore/MW, whichever is the lower; 50 % of the VGF will be released to the developer on commissioning, and the rest will be released in equal tranches over the next 5 years, depending on projects to fulfill minimum performance criteria.
- Minimum capacity of a project: 10 MW. Maximum capacity of a project will be 50 MW. But a company can bid for many projects (max. 5), though for not more than a cumulative 100 MW.