After the meeting, Power Minister Piyush Goyal said, "To push solar energy programme, a scheme to provide Rs 5,050 crore VGF for setting up 5,000 MW capacity has been approved."

Elaborating further the minister said, "The VGF will be provided through reverse bidding. Whosoever will quote the lowest VGF will win. One part of these funds will be for domestic modules. These companies will be given Rs 1.25 crore per MW and those coming through international competitive bidding will get Rs one crore per MW)."

Goyal expressed hope that the VGF reverse bidding auction will help in reducing the power tariff in future.

According to the statement, it will be implemented by Solar Power Developers (SPDs) with VGF under Batch-lV of Phase-ll of the JNNSM. The total investments expected under this scheme is about Rs 30,000 crore.

It said that the estimated requirement of funds to provide VGF for 5,000 MW capacity solar projects is estimated to be Rs 5,050 crore (Rs one Crore/MW).

Under the scheme 500 MW capacity will be created this fiscal while during four financial year from 2016-17 to 2019-20, solar power generation capacity of 1,125 each year will be set up.

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