Centre tightens solar VGF rules for PSUs

Our Bureau New Delhi | Updated on May 11, 2021

The maximum tariff will be ₹2.45 per unit

The Centre has lowered the maximum tariff a central public-sector firm can charge from power distribution companies for supplying electricity from its grid-connected solar projects built with viability gap funding from the government.

In an order on Monday, the Ministry of New and Renewable Energy announced that the maximum tariff will now be ₹2.45 per unit instead of ₹2.80 per unit. It also reduced the maximum permissible VGF to ₹0.55 crore per MW from ₹0.7 crore per MW earlier.

The Central Public Sector Undertaking Scheme Phase-II is aimed at these firms setting up 12,000-MW grid-connected solar projects with VGF support for self-use or by other government entities either directly or through discoms.

The Indian Renewable Energy Development Agency Limited (IREDA) conducts the bidding for the allocation of projects under the scheme.

Published on May 11, 2021

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