Accelerating the process of achieving grid tariff parity for solar power and also to help reduce consumption of kerosene and diesel, the government has approved the setting up of 15,000 MW grid-connected solar photo voltaic power projects through state-run NTPC under the National Solar Mission.
The scheme will be executed by NTPC Vidyut Vyapar Nigam (NVVN), an arm of NTPC, in three tranches and the capacity allotted to each such state will be set up through developers, to be selected through international competitive bidding by NTPC/NVVN.
As per the cabinet approval, the bundled power will be allotted to various states that offer to provide land for setting up the solar power projects, and to those which would purchase a major portion of the bundled solar power for consumption within the state and ensure connectivity to the solar power project. Initially, 1000 MW capacity out of the 3000 MW under the bundling scheme will be set up on land already identified in Andhra Pradesh, while the he balance 2000 MW capacity under the Bundling Scheme will be allotted in other interested states that come forward.
The first Phase of the National Solar Mission (2010-2013) had a target of 1,100 MW for grid connected solar power generation capacity, against which 1,685 MW was set up in the country under various schemes. Further capacity addition of 9,000 MW comprising 3,000 MW under central schemes and 6,000 MW under state initiatives and other mechanisms were envisaged in the second phase of the Mission (April 2013-March 2017) and further there will be Phase 3 (2017-22).