Altered VGF funding heightens developer interest in 160MW Gujarat auction

June 28, 2016
Facebook
Twitter
LinkedIn
Reddit
Email
The Charanka solar park already has commissioned capacity from the likes of SunEdison. Credit: SunEdison

Capacity for a solar park in the Indian state of Gujarat has been awarded to four companies in the latest National Solar Mission (NSM) auction after changes to viability gap funding (VGF) funding garnered more interest from developers.

The results for the 160MW up for grabs at the Charanka Solar Park, handed out by the Solar Energy Corporation of India (SECI) were as follows:

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The results of the Gujarat auction. Credit: Mercom Capital Group

The VGF, a financial support mechanism from the government, was altered for this particular bid.

Previous projects involving the VGF funding in NSM, Phase II, Batch III, were to have the VGF dispersed in six tranches, starting with 50% at the commissioning of the project, followed by 10% in each of the subsequent five years.

However, in Batch IV, 100% of the VGF will be dispersed to the developer on the commissioning of the plant. Meanwhile, SECI also obtains a bank guarantee for 20% of the VGF amount.

Mudit Jain, consultant at Bridge to India, told PV Tech: “This Gujarat tender was initially launched under the Phase III, but it subsequently moved to Phase VI because there was not enough developers interest. [This] was more to do with the cost of the solar park.

“The cost of solar park is very high in Gujarat. It is perhaps the highest in India. So that is the reason for shifting to Phase VI to improve the project viability by a bit more.”

While some solar park developments across India have helped drive the record low soalr bids in recent months, such as in Rajasthan and Andhra Pradesh, the solar park policy also been cited in some cases as actually more expense for developers.

Read Next

March 20, 2026
Global solar PV installations reached 647GW in 2025, up 11% from the previous year, according to data from think tank Ember.
March 19, 2026
Indian rooftop solar specialist Solarium has moved into PV manufacturing with the commissioning of a 1GW module facility in Gujarat.
March 18, 2026
India added 119GW of solar module and over 9GW of solar cell manufacturing capacity in 2025, according to Mercom’s latest report.
March 18, 2026
Indian PV encapsulant and backsheet manufacturer RenewSys has commissioned a 3GW solar module manufacturing facility in Raigad, Maharashtra.
Premium
March 17, 2026
PV Talk: Premier Energies' Vinay Rustagi explores how India’s rapid renewable energy expansion is colliding with the limitations of its grids.
March 17, 2026
Sunsure has secured INR6.06 billion (US$65.6 million) in debt financing to develop solar projects across Maharashtra and Uttar Pradesh.

Upcoming Events

Solar Media Events
March 24, 2026
Dallas, Texas
Solar Media Events
April 15, 2026
Milan, Italy
Solar Media Events
June 16, 2026
Napa, USA
Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain