CPSU Scheme Phase-II (Government Producer Scheme)

• The Government of India, through Ministry of New & Renewable Energy (MNRE), on 05.03.2019, approved implementation of CPSU Scheme Phase-II for setting up grid-connected Solar Photovoltaic (PV) Power Projects by Central and State PSUs, Government Organisations, with Viability Gap Funding (VGF) support of Rs 8,580 crore, for self-use or use by Government/ Government entities, either directly or through Distribution Companies (DISCOMs).
• The maximum permissible VGF was initially two tranches was kept at ₹0.70 cr./MW which was subsequently reduced to ₹0.55 cr./MW for third tranche. Transparent bidding, using Viability Gap Funding (VGF) as the bidding parameter to select project proponent, determines the amount of VGF to be given to a Government organizations under the Scheme
• Domestic Content Requirement (DCR): The scheme mandates usage of domestically manufactured solar PV cells and modules.
• Implementation Agency: (i) For first two tranches bid out till 31.12.2020: Solar Energy Corporation of India Limited (SECI); (ii) For subsequent tranches: Indian Renewable Energy Development Agency Limited (IREDA).
• Role of Implementing Agency (SECI / IREDA): Implementing Agency will handle the Scheme, on behalf of MNRE, by way of Bidding on VGF among prospective Government Producers; Scrutiny of project proposals for WTO compliance; Project progress monitoring including site inspection; Ensuring compliance of Domestic Content Requirement (DCR) by way of site inspection/ field visits; and handling of funds under the Scheme. For these activities, Implementing Agency is eligible to get a fee of 1% of VGF disbursed.
• Status of implementation: Under this Scheme, the Government has so far sanctioned about 8.2 GW capacity of solar PV power plants to the following entities:

Relevant Documents

• Guidelines for implementation of Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme)
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