Question : NATIONAL SOLAR MISSION

(a) whether average tariff for solar projects under Batch-II of Jawaharlal Nehru National Solar Mission has come down under Rs. 9/-;

(b) if so, whether such low tariff quoted by bidders makes these projects risky from investment point of view due to low internal rate of returns;

(c) if so, whether high borrowing cost is an issue which contributes to the risk profile of the projects; and

(d) if so, the steps taken by Government to provide access to funds at reasonable interest rate to mitigate the risks associated with the projects?

THE MINISTER OF STATE FOR POWER, COAL & NEW AND RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a): Yes, Madam. The average bidded tariff for Solar PV plants selected under Batch-II of Jawaharlal Nehru National Solar Mission (JNNSM) is Rs. 8.77 per unit.

(b): No, Madam. Similar rates have been quoted against other tenders floated by States also as the cost of setting up a Solar PV power plant has come down substantially.

(c): The cost of borrowing contributes to the risk profile of any project including solar.

(d): MNRE is in constant contact with banks and financial institutions to convince them about lending for solar power projects.