Government promotes establishment of utility-scale solar power generation plants in Bihar

The Government is promoting establishment of utility-scale solar power generation plants under Jawaharlal Nehru National Solar Mission (JNNSM) across the country, including the State of Bihar. The plants are being set up mainly by private developers on Build, Own and Operate (BOO) basis with own investment at locations of their choice, backed by facilitating policies of States and fiscal/ financial incentives from Central Government, such as, concessional/ nil customs and excise duties, accelerated depreciation, preferential tariffs, etc. 

Recently, the Government has approved a new Scheme for providing Viability Gap Funding (VGF) support for setting up of such projects from the National Clean Energy Fund (NCEF), under which the generated power will be purchased by Solar Energy Corporation of India (SECI) at a fixed levelised tariff of Rs.5.45 per kWh for 25 years.

The projects, which can be set up at any location, including any place in Bihar, will be selected based on a process of reverse bidding on VGF required by the developers. Detailed guidelines for implementation of the scheme have been issued by the Ministry on 25.10.2013 and Request for Selection (RfS) document has been issued by SECI on 28.10.2013. The closing date for receipt of proposals in response to the RfS is 28.12.2013. 

This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply in the Rajya Sabha.