MNRE releases New Draft Guidelines for Selection of 3000 MW Grid-connected Solar PV Power Projects under Phase II Batch-II Tranche-I State Specific Scheme !

MNRE has now released new & revised draft scheme for implementation of the solar projects under its much discussed JNNSM Phase II Batch II scheme. MNRE now proposes to add a total Solar PV capacity of 15000 MW in three tranches to be implemented through NVVN as part of Phase-II Batch-II.  The scheme envisages setting up of Grid-connected solar PV power plants of 15,000 MW aggregate capacity through open competitive bidding as under:

  • Tranche-I : 3,000 MW : 2014-15 to 2016-17 ( Bundling with 1500 MW unallocated NTPC Power from Coal Station allocated by MoP).
  • Tranche-II : 5,000 MW: 2015-16 to 2017-18 (selection mechanism to be decided later)
  • Tranche-III : 7,000 MW: 2016-17 to 2018-19 ( selection mechanism to be decided later)

This new draft scheme is for Tranche-I projects & the proposed 3000MW Solar PV projects to be selected under Batch-II Tranche-I of NSM Phase-II scheme, will be implemented by NVVN on Solar Parks to be developed through association of central and state agencies.

Also under Tranch-I Part I : around 1000 MW PV Projects would be selected for setting of projects in Solar Park to be developed by a JV Company of SECI, NEDCAP &  APGENCO at Kurnool district in Andhra Pradesh

The Solar Power Developers shall enter into Implementation Support Agreement with JV Company  for land & associated infrastructure. The connectivity shall be provided by STU (APTRANSCO)/CTU (PGCIL)  with the provision of the STU/CTU pooling substation for the solar park.

Operational Mechanism :

  • Solar PV Projects of 1000 MW total capacity shall be carried out by NVVN through a tariff based bidding process.
  • NVVN will purchase the power from the successful developers at their bid tariff and sell bundled power (1000 MW Solar + 500 MW  Power from NTPC Coal Station allocated by MoP) to AP Distribution Companies after adding Trading Margin and other incidental expenses.

Highlights of the Draft Guidelines :

  • Total Solar PV Projects to be selected under Tranch-I Part I : 1000 MW PV Projects
  • Size of the Project : 50 MW as its required to be connected to transmission utility substations at 132kV & above. The total project to be allotted to a company shall be limited to 250 MW.
  • A company can propose maximum of 5 projects : 3 under Open Category & 2 under the Domestic Content Requirement (DCR) subject to a maximum aggregate capacity of 250 MW.
  • Processing Fees :  Rs. 2 Lakh per project
  • Net Worth requirement of the company : Rs. 2 Crore per MW
  • PPA Duration :  The PPA shall be for a period of 25 years from the date of CoD with a provision to extend further by 15 years @ Rs. 3/kWh.  In case of disagreement the project developer may close the project or may seek extension of lease for further 15 years and sell power to third party.
  • Earnest Money Deposit (EMD) of Rs. 20 Lakh/MW in the form of Bank Guarantee along with RfS.
  • Performance Bank Guarantee of Rs. 30 Lakh/MW at the time of signing of PPA.In addition to the Performance Bank Guarantee of Rs. 30 Lakh/MW to be provided at the time of  signing of PPA, the Bank Guarantees towards EMD will also be converted into Performance Bank Guarantee making it total of Rs. 50 Lacs/MW as Performance Bank Gaurantee. 
  • Performance Guarantee Deposit (PGD) of Rs. 20 Lacs/MW in the account of NVVN at the time of commissioning of the project and the same shall be refunded to SPD without interest after expiry date of PPA including extension period of 15 years after satisfactory performance of the project.

Domestic Content Requirement (DCR) : Out of the total capacity of 1000 MW under Phase-II Batch-II Tranche-I Part-I, a capacity of 250 MW will be kept for bidding with Domestic Content Requirement (DCR).

Timeline for selection of solar pv projects under JNNSM Phase II Batch II Tranche I draft scheme

The official document of the draft guidelines can be accessed by Clicking Here

You can also review the new Rajasthan Solar Energy Policy 2014 at CLICK HERE

Meanwhile till we meet next time with more updates on new solar energy policies & upcoming projects in India…

Cheers !


Solar Project Consultant – India

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Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia


About Urvish Dave

Urvish Dave is working as a Project Consultant in the Renewable Energy Arena with an expertise and keen focus on Solar Energy Sector viz. Rural Electrification, Off-Grid Solar Projects, Grid connected, Captive power plants, Renewable Energy Certificates (REC) Mechanism etc. for various Renewable Projects in India along with market intelligence pertaining to renewable energy sector. He holds the distinction of executing numerous Solar projects during the career path including EPC projects for Rural Electrification, Solar Grid Connected Projects, Off-Grid Projects etc. For Consultation and Turnkey Solutions in Renewable Energy Projects and energy efficient product's, visit or write him at
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