The ministry of new and renewable energy (MNRE) has extended the commissioning for Tranche-III of the Central Public Sector Undertaking (CPSU) program Phase-II to 30 months from the existing 24 months & Tranche-I and Tranche-II to 12 months from 06 months from when the letter of award (LoA) is issued.

MNRE NEws-min | Ornate Solar

The Solar Energy Corporation of India (SECI) had requested the ministry to extend the timelines for these projects under Tranche-I and Tranche-II. Besides, many stakeholders had also urged the MNRE regarding the extension of the projects’ timeline under Tranche-III of the program.

the Ministry has asked SECI, which is the implementing agency for the Central Public Sector Undertaking (CPSU) program, to submit the compliance report within 14 days from the date of the notification.

Phase II of the Central Public Sector Undertaking Program was accorded by the President of India in March 2019. Within this program, a 12000 MW of grid-connected solar photo-voltaic project to be installed whose power will be consumed by government entities.

As per the notification, for projects under Tranche-I and Tranche-II of the program, the government agencies which have awarded the EPC contract within six months from the date of the issuance of the LoA should increase the timeline of project execution, so that the total project timeline is 30 months from the date of the issuance of the Letter of Award.

If the EPC contract was awarded after six months and before 12 months from the date of the LoA, such delay should be regularized, and the government agencies should keep time for the completion of the project within 30 months from the date of the Letter of Award.

If the EPC contract has not been awarded even after 12 months, SECI should assess the readiness of the project for commissioning within 30 months and, based on that, decide to give more time for the award of the EPC project. The overall completion time of the project in such cases would continue to be 30 months from the date of the issuance of the Letter of Award. All other projects will be canceled, and they can apply afresh in future Central Public Sector Undertaking (CPSU) tenders.

Recently, MNRE issued amendments for setting up 12,000 MW of solar projects with viability gap funding (VGF) by CPSUs for self-use or use by government entities. As per the new amendment, the maximum permissible VGF has been kept at ₹5.5 million (~$74,990)/MW, and the actual VGF will be decided through bidding. Earlier, the sum was ₹7 million (~$92,288)/MW.

 

 

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