750-Mw solar power project gets nod

The total viability gap funding requirement for the scheme works out to Rs 1,875 cr

The Union Cabinet on Thursday approved the setting up of a 750-Megawatt (Mw) power generation capacity under the initial leg of the second phase of the National Solar Mission under implementation. The projects would be set up with viability gap funding (VGF) support from the government's clean energy fund.

The total VGF requirement for the scheme works out to Rs 1,875 crore. "The support is estimated to leverage private investment to the tune of Rs 5,000 crore in setting up the projects," according to an official release.

The National Solar Mission, launched in 2010, aims at setting up 20,000 Mw of solar power by 2022 in three phases. The second phase began this year and is due to end in 2017. The scheme will be implemented through Solar Energy Corp (SECI), a company under the green energy ministry, along with power generator NTPC Ltd's trading arm, NVVN.

SECI will purchase power at a fixed tariff of Rs 5.45 per unit for 25 years and sell it to willing distribution companies at Rs 5.50 per unit.

Projects will be selected through competitive bidding for VGF requirement. Prime Minister Manmohan Singh-headed cabinet also approved a petroleum ministry's proposal to allow ONGC Videsh Ltd and Oil India Ltd to acquire 20 per cent stake in an offshore gas block in Mozambique. This includes 10 per cent stake of Videocon Industries for $2,475 million in Rovuma Area-1 block to be taken over jointly by OVL and OIL and another 10 per cent stake of Anadarco petroleum Corp in the same block for $2,640 million solely by OVL.

The cabinet also approved implementing the National Mission on Oilseeds and Oil Palm during the current Plan period with a financial allocation of Rs 3,507 crore and another scheme for integrated textile parks at a cost of Rs 717 crore during the period.