MNRE amends the Central Public Sector Undertaking (CPSU) scheme Phase-II

Apr 17, 2020 | by Avantis RegTech Legal Research Team

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Commercial Compliance

The Ministry of New and Renewable Energy (MNRE) on April 13, 2020, has decided to implement the Central Public Sector Undertaking (CPSU) scheme Phase-II (Government Producer Scheme). Thus, it is decided to amend the Order No. 302/4/2017-GRID SOLAR dated March 05, 2019 with respect to Order for Scheme Guidelines for Central Public Sector Undertaking (CPSU) scheme Phase-II. The CPSU Scheme Phase-II is aimed at setting up 12,000 MW Photovoltaic solar grid  power projects under the government producers with Validity Gap Funding (VGF) support for self-use or use by government entities directly or through distribution companies (DISCOM).

The amendments are as follows:-

 The maximum usage charges are reduced from Rs. 3.5/unit to Rs. 2.80/unit, exclusive of any other third-party charges like wheeling and transmission charges and losses, point of connection charges and losses, cross-subsidy surcharge, State Load Dispatch Centre or Regional Load Dispatch Centre charges etc.

 The Indian Renewable Energy Development Agency Limited (IREDA) has been appointed as implementing agency to handle CPSU Scheme Phase-II to conduct the bidding for allocation of Solar power project capacity under the Scheme with VGF amount as a bid parameter to select the project proponents. The maximum permissible VGF amount will be reviewed time to time by MNRE.

 IRDEA will be responsible for dealing with all issues regarding time-extension and dispute resolution.

 The timeline for project commissioning seeking to the solar power project has been amended:

• For project upto 500 MW capacity are required to be commissioned within 24 months from the date of letter of award; and

• For project more than 500 MW capacity are required to be commissioned within 24 months from the date of letter of award and balance capacity to be commissioned within next 6 months. 

 The IREDA shall be permitted to allot or sanction solar photovoltaic power project capacities upto 50 MW to any willing Government entity at the L1 rate within 4 months of such last bidding, without the need for such entity to participate in bids.


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