The Union Cabinet on Wednesday gave approvals for establishing the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA), and a scheme for setting up of 15,000 MW of Grid-connected Solar PV Power projects under the National Solar Mission.
The solar power projects will be carried through NTPC/ NTPC Vidyut Vyapar Nigam limited (NVVN) in three tranches -- 3000 MW under Tranche-l under mechanism of Bundling with Unallocated Coal based Thermal Power and fixed levellised tariffs, 5,000 MW under Tranche-ll with some support from Government to be decided after getting some experience while implementing Tranche-l and balance 7,000 MW under Tranche-Ill without any financial support from the Government
The first Phase of the National Solar Mission (2010-2013) had a target of 1100 MW for Grid-connected solar power generation capacity, against which 1685 MW was set up under various schemes. Further capacity addition of 9,000 MW comprising 3,000 MW under Central schemes and 6,000 MW under State initiatives/ other mechanisms was envisaged In the second phase of the Mission (April 2013-March 2017).
Keen to expeditiously promote solar power in the country through market driven approach, Government plans to gradually phase out subsidies and government support. It is proposed to significantly enhance capacity addition in the second phase under Central schemes through various mechanisms.
The decision relating to New Development Bank will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development.
The BRICS CRA proposes to provide short-term liquidity support to the members through currency swaps to help mitigating BOP crisis situation, in case such a situation arises. The BRICS CRA will help India and other signatory countries to forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability.