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Construction : Power Update | February 2016 | Source : Infrastructure Today

Cabinet clears VGF for 5,000 MW solar projects

In the wake of falling solar tariffs and increasing capacity addition, the Union Cabinet approved setting up 5,000 MW of grid-connected solar photovoltaic power projects on a build, own and operate basis.

For bidding, the government would set a reference price, over and above which the companies would bid for viability gap funding (VGF) from the government.

Out of 5,000 MW, some capacity in each tranche, will be developed with mandatory condition of solar PV cells and Modules made in India. The VGF amount would Rs.1.25 crore for domestic content based projects and Rs.1 crore for open category.

The estimated requirement to provide VGF for 5,000 MW capacity solar projects is estimated to be Rs.5,050 crore.

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