Cabinet nod to defence sector setting up solar power projects

The union cabinet chaired by Prime Minister Narendra Modi Wednesday approved the setting up over 300 MW of grid-connected and off-grid solar power projects by defence establishments and paramilitary forces under viability gap fund of Jawaharlal Nehru National Solar Mission (JNNSM) in the 2014-19 period.

An official release said the cabinet also gave its permission for right to use defence land by the developers chosen by defence establishments or for self-use for setting up solar power projects and sale of excess power to distribution companies.

"The defence organisations/establishments will be free to own the power projects - that is get an EPC (engineering, procurement and construction) contractor to build the project for them or get a developer who makes the investment and supplies power at a fixed tariff of Rs.5.50 per unit," the release said.

"Installation of solar power plants in defence sector by utilising available land/rooftop will help in achieving energy security and promote ecologically sustainable growth," the release said.

It said the use of domestically manufactured equipment will boost indigenous production of solar cells and modules.