The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the following
i. Setting up over 300 MW of Grid-Connected and Off-Grid Solar PV Power Projects by Defence Establishments under Ministry of Defence and Para Military Force under Ministry of Home Affairs (MHA) with Viability Gap Fund (VGF) under the Jawaharlal Nehru National Solar Mission (JNNSM) in five years that is from 2014 to 2019;
ii. Stipulation of mandatory condition that all PV cells and modules used in the solar plants set up under this Scheme will be made in India;
iii. Provision of an amount of Rs.750 crore for Ministry of New and Renewable Energy (MNRE) from the National Clean Energy Fund (NCEF) for the purpose as recommended by the IMG; and
iv. Permission for right to use Defence land by the developers chosen by Defence Establishments by way of lease and otherwise or for self- use of the same by Defence Establishments themselves, for the purpose of setting up of Solar Power Projects and sale of excess power to distribution companies.
The Defence organisations/establishments will be free to own the power projects that is 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.
Installation of solar power plants in Defence sector by utilising available land/rooftop will help in achieving energy security and promote ecologically sustainable growth. The use of domestically manufactured equipment shall boost indigenous production of solar cells and modules. Defence organisation will be able to get clean power at reasonable price for 25 years.