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Revision of Guidelines For JNNSM

The guidelines for selection of solar power projects under the JNNSM issued in July, 2010 incorporated the following main provisions for allotment of the projects to companies:

  • Eligible project capacity: 5 MW for Solar PV and 5 MW to 100 MW for Solar thermal projects.
  • No. of applications by one company (including its parent, affiliate or ultimate parent or any group company): Only one, limited to 5 MW for Solar PV and 100 MW for Solar thermal projects.
  • Net worth of company: Minimum Rs.3 crore/ MW for projects upto 20 MW capacity plus additional Rs.2 crore/ MW for each additional MW capacity.
  • Short-listing and final selection of projects: On the basis of (i) fulfillment of financial and technical criteria laid down in RfS document and (ii) discount offered by the project developers on CERC Approved Applicable Tariff, as per mechanism specified in RfP document.

An article appeared in a magazine `Down to Earth™ in its issue dated 1-15 February, 2012 in which allegations were made regarding violation of guidelines of the 1000 MW solar power project scheme of JNNSM implemented through NVVN. It was alleged that one company got projects aggregating to 235 MW in violation of guidelines. The Ministry appointed an Inter-ministerial Committee to enquire into the allegations.

The Committee in its report has made a number of recommendations and suggestions such as refining of the guidelines so as to bring in greater clarity regarding definitions of net worth, control, etc. It has also recommended more specificity in guidelines regarding selections of EPC contractors and has recommended physical verification of the address of the company and more stringent and specific penalty provisions in case of violation of any clause of the guidelines. These suggestions/ recommendations have been duly noted for incorporation in guidelines for future biddings for projects to be allocated under JNNSM. The report of the Committee and its recommendations are currently under examination by the Government.

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eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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