The Government has decided to ease norms for releasing viability gap funding (VGF) under a scheme for setting up 1,000-MW grid-connected solar projects by central public sector undertakings and other government organisations.
Now, half of the VGF will be released at the time of getting letter of intent and starting work, while remaining assistance will be released at completion of the project, according to an amendment posted on the website of the Ministry of New and Renewable Energy.
As per earlier norms, half of the VGF was released on completion of a project and remaining was paid after one year of its successful operation.
According to the amendment, the changes will come into force with immediate effect.
The government launched this scheme in January this year to promote installation of grid-connected solar PV power projects by CPSUs and other government organisations.
Under the National Solar Mission, government aims to achieve about 100GW of solar power generation capacity by 2022.
Source : THE ECONOMICS TIMES