The Government of India will continue to provide central financial assistance for commissioning of rooftop, stand-alone and tail-end grid connected solar photovoltaic power projects in rural and urban areas of the country. Under the recently approved Jawaharlal Nehru National Solar Mission (JNSM), a target for setting up of 1100 MW grid connected solar power plants and 200 MW of off-grid solar energy applications has been envisaged during the first phase of the Mission, till March 2013.
NTPC Vidyut Vyapar Nigam (NVVN), the trading subsidiary of NTPC, is the nodal agency for purchase of 1,000 MW capacity of grid solar power (connected to 33 KV and above grid) from the project developers at a tariff fixed by Central Electricity Regulatory Commission (CERC) for purchase of solar power. NVVN will sign a PPA with each project developer for a period of 25 years as fixed by CERC. For each MW capacity of solar power for which PPA is signed by NVVN, Ministry of Power will allocate to NVVN an equivalent MW capacity from the unallocated quota of NTPC stations. NVVN will bundle this with solar power and sell this power at a rate fixed as per CERC regulations. The utilities will be entitled to use solar power to meet their renewable power obligation (RPO).