Govt gives nod for installing solar plants in defence sector

To promote energy security and ecologically sustainable growth, the government today gave the green signal for installation of solar power plants in defence and paramilitary establishments by utilising available area.
The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its approval for setting up over 300 MW of grid-connected solar PV power projects by defence establishments and paramilitary forces in the country under an ambitious solar mission of the government.
The Cabinet gave its approval for "setting up over 300 MW of grid-connected and off-grid Solar PV Power Projects by defence establishments under Defence Ministry and paramilitary forces under Home Ministry with viability gap fund (VGF) under the Jawaharlal Nehru National Solar Mission (JNNSM) in five years--that is from 2014 to 2019," an official release said.

According to it, stipulation of mandatory condition that all PV cells and modules used in the solar plants set up under this scheme will be made in India.
The Cabinet approved provision of an amount of Rs 750 crore for Ministry of New and Renewable Energy (MNRE) from the National Clean Energy Fund (NCEF) for the purpose.
It also granted permission for right to use defence land by the developers chosen by defence establishments by way of lease and otherwise or for self-use of the same by defence establishments themselves, for the purpose of setting up of solar power projects and sale of excess power to distribution companies.

The defence organisations will be free to own the power projects or get a developer who makes the investment and supplies power at a fixed tariff of Rs 5.50 per unit, the release said.
The use of domestically manufactured equipment will boost indigenous production of solar cells and modules, it said, adding, the defence sector will be able to get clean power at reasonable price for 25 years.