President Sanctions Implementation of 1 GW Subset of Existing 5 GW VGF Solar Scheme

Bidding will be conducted by SECI with capping the tariff at Rs 3 per unit, with a maximum VGF of Rs 1 Crores/MW.

Subset Implementation of VGF Scheme

The Ministry of New and Renewable Energy (MNRE) has issued an order for the implementation of a subset of existing 5 GW Viability Gap Funding (VGF) scheme for setting up of 1 GW of grid-connected solar PV power projects in northeastern states including Sikkim under Jawaharlal Nehru National Solar Mission (JNNSM).

The scheme will be implemented through Solar Energy Corporation of India (SECI), as per MNRE guidelines of the VGF Scheme issued first in 2016. The latest scheme envisages to set up 1 GW of solar photovoltaic power projects on a build, own and operate (BOO) basis by the Solar Power Developers (SPDs) in northeastern states including Sikkim.

Features of Subset of existing 5 GW Viability Gap Funding (VGF) Scheme will be as under:

This Sub Scheme of 5 GW VGF Scheme will be valid for only NE States including Sikkim.

The total aggregated capacity under this Sub scheme shall be 1000 MW.

Bidding would be conducted by SECI with capping the tariff at Rs 3 per unit, with a maximum VGF of Rs.1.0 Crores/MW.

The minimum size of the project will be kept as 5 MW due to the land constraint in N-E states. Commissioning of solar projects will be kept within 21 months from the date of singing of Power Purchase Agreements (PPAs).

The funds for this proposal may be disbursed by re-appropriation through 2552.318.01.02.35 NE Head under Grid Interactive.

VGF will not be given to any private party for private consumption.

All other terms and conditions of the 5000 MW VGF Scheme will remain the same.

The subset of the scheme will be operative up to the financial year 2018-19 and work towards meeting the targets of the Jawaharlal Nehru National Solar Mission (JNNSM).

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Ayush Verma

Ayush is a staff writer at and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for