Government boosts solar power, approves several projects

To boost the solar power sector, the government has approved several projects which are expected to augment capacity and supply in the country.

The approvals for various schemes for the sector came during a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

The decisions, which were approved late Wednesday night, included setting up of a 1,000 megawatt grid-connected solar PV power projects with viability gap funding support of Rs.1,000 crore.

The project is envisioned to be carried-out by central public sector undertakings within three years from 2015-16 to 2017-18.

"The scheme will have a mandatory condition that all PV cells and modules used in solar plants set up under this scheme will be made in India," an official statement said.

Other schemes like setting up of a 300 MW grid-connected and off-grid solar PV power projects by defence establishments and para military forces under viability gap funding was also approved.

The scheme said the CCEA, will be provided financial support through Jawaharlal Nehru National Solar Mission (JNNSM) in the coming five years starting from 2014 to 2019.

Cabinet also gave its sanctions for erecting of 25 solar parks each with a capacity of 500 MW and above in various parts of the country.

These parks, said the CCEA will be able to accommodate over 20,000 MW of solar power and will be set up during the next five years from 2014-15 to 2018-19.

The central government will provide a financial support of Rs.4,050 crore for the scheme.