BL reported that the new guidelines for selection of grid connected solar photo voltaic projects under the Jawaharlal Nehru National Solar Mission and the latest Central government initiative will encourage independent power producers to take up bigger projects of up to 50 MW.

According to SEMI India, as an industry body serving the solar photo voltaic industry, SEMI India says these guidelines will enhance the selection of 350 MW of solar PV projects under the JN-NSM.

This new development is applicable to solar PV projects during 2011-2012. The increase in the size of these solar PV projects to up to 50 MW was a key recommendation of SEMI which the Centre accepted earlier this week.

Reacting to the government move, Mr Debasish Paul Choudhury president of SEMI India said that “The newly announced guidelines will pave the way for leading Independent Power Producers to participate by taking advantage of cap per developer going up to 50 MW.”

Mr K Subramanya CEO of Tata BP Solar and chairperson of SEMI's India PV Advisory Committee said that “It would be appropriate to extend the scope of the domestic content requirement to apply to local projects.”

Mr Choudhury in a statement said that financing is expensive and hard to secure for solar projects. Questions persist around the bankability of documentation that developers need to submit to secure financing.

Mr Subramanya said that “Government payment security schemes and loan guarantee schemes are starting to address the situation, but more remains to be done. If interest rates are brought down, through priority lending to the solar sector, the Indian solar industry will see huge growth avenues.”

(Sourced from BL)