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News Brief | June 2013

Coal Tax To Fund India's 750 MW Solar Power Capacity Addition Plan

The Indian government is set to repose millions of dollars in financial support for solar power project developers from the coal tax corpus it has accumulated over the last few years. Project developers looking to set up projects under the second phase of the Jawaharlal Nehru National Solar Mission will receive financial assistance over capital cost expenditure. According to the guidelines recently released by the government, the project developers will receive financial assistance of up to Rs 2.5 crore per MW ($0.45 million per MW) or about 30 per cent of the total capital investment required for a solar photovoltaic project. The 750 MW solar PV capacity will be allocated under the Viability Gap Funding scheme, wherein the government shall support the project developers to a certain extent to set up the projects
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