Economy

IREDA extends CPSU scheme phase II deadline till June 15

Our Bureau New Delhi | Updated on June 07, 2021

To set up 12,000 MW grid-connected solar projects with viability gap funding

Indian Renewable Energy Development Agency Ltd (IREDA) has extended the bid submission date to June 15 for implementation of the Central Public Sector Undertaking (CPSU) scheme phase-II to set up 12,000 MW grid-connected solar projects with viability gap funding (VGF).

Earlier, the last date to submit the bids had been May 30. The VGF is provided to cover the cost difference between domestic and imported solar cells and modules under the scheme. These funds will be released in two tranches, the Ministry of New and Renewable Energy said in a statement on Monday.

Also read: IREDA invites bids for solar PLI scheme

Under the scheme, the power produced by the government producers can be used on payment of mutually agreed usage charges of not more than ₹2.45 per unit for self-use or use by the government or its entities, either directly or through power distribution companies.

Earlier, the Ministry had appointed IREDA as the implementing agency for the scheme. The CPSUs are required to submit their responses by June 15, and the successful bidders are to be selected by July 20.

The maximum permissible VGF is ₹55 lakh per MW. The actual VGF to the government producer will be decided through a bidding process using the VGF amount as a bid parameter to select the project developer.

The maximum permissible VGF amount will be reviewed from time to time, by the Ministry, and will be reduced if the cost difference comes down.

Published on June 07, 2021

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