Rs 5000 mn cushion for solar power developers

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A corpus of about Rs 5000 million (Rs 500 crore) that would work as an additional security for solar power developers seeking loans, is soon to be set up. This fund, to be managed by NTPC Vidyut Vyapar Nigam (NVVN), is aimed at removing the apprehensions of the lenders regarding the security of their loans. In principle, approvals have already been obtained. Now, a formal approval for the fund is expected shortly.

The fund would be used in case of defaults by Discoms (power distribution companies) in making their payments to NVVN. Under the Jawaharlal Nehru National Solar Mission (JNNSM), NVVN has been designated as the nodal agency for the sale and purchase of power.

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