Altered VGF funding heightens developer interest in 160MW Gujarat auction

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

Premium
May 22, 2026
As trade dynamics shift, could the EU become the next big market for Indian solar suppliers? PV Tech Premium explores the outlook with Wood Mackenzie’s Yana Hryshko and IEEFA’s Charith Konda.
May 21, 2026
Indian renewable energy company SAEL has commissioned 600MW of solar project in Kurnool, Andhra Pradesh. 
May 20, 2026
GameChange Solar has partnered with First Solar to support the deployment of domestically manufactured thin-film solar modules in India. 
May 20, 2026
The US$300 million North Star platform will target investments across solar, wind, hybrid and energy storage projects. 
May 19, 2026
Inox Clean Energy has completed the acquisition of US solar manufacturer Boviet Solar Technology in a deal valued at around US$750 million.
May 18, 2026
RUMSL has launched two solar-plus-storage projects in India designed to provide power supply during peak demand periods.

Upcoming Events

Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)
Solar Media Events
June 16, 2026
Napa, USA