MNRE provides CFA breakdown for Solar parks scheme
In December 2014, the Ministry of New and Renewable Energy (MNRE) came up with detailed guidelines for the development of solar parks and ultra mega solar power projects (here). The scheme being implemented by the Solar Energy Corporation of India (SECI) is applicable to all states and union territories. As per the scheme, the state specific implementing agency is eligible for a central financial assistance (CFA) of up to ?20 lakhs per MW or 30% of the project cost including grid connectivity cost to be released by SECI in six milestones.
In a new development, MNRE has now provided the distribution of CFA between solar power park developers (SPPD) and external transmission system developers. As per the new clarification (here), the CFA will be apportioned in 60:40 ratio i.e. ?12 lakhs per MW and ?8 lakhs per MW for development of solar park and transmission infrastructure respectively with a cap of 30% of project cost.
The CFA to be provided to SPPDs will be determined after evaluation of detailed project report submitted by them. This amount will be released by SECI on the achievement of two milestones instead of six milestones envisaged in the existing scheme. Similarly, the CFA for transmission infrastructure will be released directly to the Central Transmission Utility (CTU) / State Transmission Utility (STU) on submission of detailed cost estimation and investment approval by their respective boards.