NTPC Vidyut Vyapar Nigam Limited (NVVN) has selected 620 MW capacity grid solar power projects (connected to 33 KV and above) through a tariff discounting process in December, 2010. The successful applicants have proposed to set up projects of 505 MW capacity in Rajasthan, 65 MW in Andhra Pradesh, 20 MW in Gujarat, 10 MW in Karnataka and 5 MW each in Orissa, Maharashtra and Uttar Pradesh. The objective of this process was to achieve lowering of tariff for solar power. This process has helped in reduction of tariff by about 30% over the tariff fixed by the Central Electricity Regulatory Commission. The projects are to be set up on build, own and operate basis.
In order to spread solar power projects in a number of States, Ministry had announced another scheme to support small grid connected solar power projects of a capacity up to 2 MW (connected to grid below 33 KV). Under this scheme the Indian Renewable Energy Development Agency (IREDA) has selected 78 projects to set up 98 MW capacity solar power plants in 12 States. In this scheme, the solar power will be purchased by the concerned state utilities at a rate fixed by the respective State Electricity Regulatory Commissions. The Ministry will provide a generation based incentive to the concerned State utilities to reduce their burden.
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