Scheme For 3 MW Grid-Connected System in Defence Sector
“Potential of Solar Energy in cantonment and Military Stations are approximately 5000 MW and in Ordnance Factory Boards (OFB) are around 950 MW. Ordnance Factory Board (OFB) and other Defense Establishments agreed to set up solar power projects on the large tracts of land and vacant rooftops which they own. The Cabinet has approved the Scheme in its meeting held on 10th December, 2014. The Ministry has issued Administrative Approval on 07th January, 2015.
The broad guidelines of the scheme are as under:
A capacity of 300 MW will be set up in various Establishments of Ministry of Defense e. Establishments of Army, Navy, Air Force, Ordnance Factory Board, Defense Laboratories and Defense PSUs etc. Para Military Forces would also be covered under this scheme. Minimum size of the project shall be 1 MW.
Government has also given permission for Right to Use the Defense Land by the Developers chosen by Defense Establishments by way of lease and otherwise or for self-use of the same by Defense Establishments themselves for the purpose of setting up of Solar Power Projects and sale of excess power to the Distribution Companies.
2. The projects under this Scheme will mandatorily use solar cells/modules which are made in India.
3. The aforesaid Establishments would identify locations for developing solar projects, anywhere in the country including border areas from time to time.
4. The following two modes may be used for tendering:
- Developer Mode: Under this mode, the project is given to developer, who makes the investment, own the project and supplies power to Defence Establishments.
- EPC Mode: This is applicable when project is built through EPC contractor and investment is made by the Defense establishment/Para Military Forces.
5. The Defense organizations/Establishments will be free to own the power projects e. get an EPC contractor to build the project for them or get a developer who makes the investment and supplies power at a fixed tariff of Rs.5.50 per unit for 25 years (or Rs. 4.75 with AD). EPC has been recommended by MHA, Planning Commission and MoD.
6. The solar project developers will be provided VGF based on the The bidders will be selected on the basis of bids for minimum VGF requirement for the project with commitment to supply solar power at Rs. 5.50/KWh for 25 years. However, the upper limits of the VGF are as follows:
Category-I: Rs.2.5 Cr./MW for project capacity upto 5 MW or 30% of the project cost whichever is lower;
Category-II: Rs. 2 Cr./MW for project capacity greater than 5 MW upto 25 MW or 30% of the project cost whichever is lower; and
Category-III: Rs. 1.5 Cr./MW for project capacity greater than 25 MW or 30% of the project cost whichever is lower.
7. Domestic Content Requirement (DCR): The entire capacity of 300 MW will be kept for bidding in phases, with Under DCR, the solar cells and modules used in the solar PV power plants must both be made in India as per specification and testing requirement by MNRE.
8. Project Implementation Schedule: A total of 300 MW capacity to be added in 5 years from 2014-19.
9. Subsequently, in view of falling prices of solar tariff and other considerations, following major changes were made vide OM No 30/69/2013-14/NSM dated 17thFebruary,2017 A Brief of amendments in existing scheme is as given below:
- The projects for which tenders have already been brought out will have these provisions as per administrative approval dated 07.01.2015.
- The amendment made herein shall come into force with immediate effect and this Addendum may be read as part of this Ministry’s administrative approval dated 7th January,2015.
- The VGF limit may be revised from upto Rs 5 Cr/MW to Rs 1.1 Cr/MW, irrespective of sizes, for all projects for which tenders have not yet been brought out.
- The tariff of solar power may be reduced from Rs 5.50 per unit to Rs50 per unit.
- To keep the provisions of scheme WTO compliant, the capacity under EPC mode of the scheme will use solar cells and modules in the solar PV power plants made in The projects under developer mode will be free to procure solar cells/modules under open category (indigenous or imported).”