ANNOUNCEMENT 20 Jan 2016

In January 2016, the government of India announced a change in private-sector financial support and a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Release from the Press Information Bureau, India - 20 January 2016

"Cabinet approves setting up of over 5,000 MW of Grid-connected Solar PV Power Projects"
http://pib.nic.in/newsite/erelease.aspx?relid=134628


Inception date: 20 Jan 2016 | Removal date: 19 Jan 2020
Still in force

Local sourcing

 On 20 January 2016, the Cabinet Committee on Economic Affairs approved setting up of 5000 MW of Solar PV projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch IV of Phase II of the program. Specific guidelines for this batch will be released later by the Ministry of New and Renewable Energy.

The capacity of 5000 MW has been divided into 4 tranches of 1250 MWs each for the years 2015-16 to 2018-19. In order to support the development of these projects a 'viability gap funding' has been approved where a government funding of a maximum of INR 10 million (ca. USD .15 million) per MW will be provided. The total support under the facility for the 5000 MW scheme has been fixed at INR 50,000 millions (ca. USD 150 million).

As with previous schemes under the JNNSM, the approval notification specifies that a part of the solar PV installations within each tranche will compulsarily have to use solar PV cells and modules manufactured in India. Specific conditions regarding these will be specified in the MNRE guidelines.

The JNNSM is a major Indian programme to develop local solar energy and domestic production capacity. The latter is sought to be achieved by setting domestic content requirements. The Mission aims to install 20,000 MW of solar projects divided in three phases in the period 2010-2022. As of 17 June 2015, the target capacity installation has been increased 100,000 MW.

AFFECTED SECTORS

 
Inception date: 20 Jan 2016 | Removal date: 19 Jan 2020
Still in force

Financial grant

 On 20 January 2016, the Cabinet Committee on Economic Affairs approved setting up of 5000 MW of Solar PV projects under the Jawaharlal Nehru National Solar Mission (JNNSM). These targets are part of Batch IV of Phase II of the program. Specific guidelines for this batch will be released later by the Ministry of New and Renewable Energy.

The capacity of 5000 MW has been divided into 4 tranches of 1250 MWs each for the years 2015-16 to 2018-19. In order to support the development of these projects a 'viability gap funding' has been approved where a government funding of a maximum of INR 10 million (ca. USD .15 million) per MW will be provided. The total support under the facility for the 5000 MW scheme has been fixed at INR 50,000 millions (ca. USD 150 million).

As with previous schemes under the JNNSM, the approval notification specifies that a part of the solar PV installations within each tranche will compulsarily have to use solar PV cells and modules manufactured in India. Specific conditions regarding these will be specified in the MNRE guidelines.

The JNNSM is a major Indian programme to develop local solar energy and domestic production capacity. The latter is sought to be achieved by setting domestic content requirements. The Mission aims to install 20,000 MW of solar projects divided in three phases in the period 2010-2022. As of 17 June 2015, the target capacity installation has been increased 100,000 MW.