Applications & Installations

India mulls alternatives to bank guarantees for PV projects

Lobby group the National Solar Energy Federation of India has welcomed the move and asked the Ministry of New and Renewable Energy to extend any such measures to existing contracts to help developers meet working capital requirements.
Uma Gupta
By
Uma Gupta
The ministry in September directed the Solar Energy Corporation of India and the NTPC to release all performance bank guarantees lodged with them within 45 days of the commissioning of solar plants. | Image: Flickr/Gopal Vijayaraghavan

India’s Ministry of New and Renewable Energy is exploring alternatives to the deposits and performance bank guarantees which must be lodged by solar developers to be eligible to participate in tenders held to allocate solar generation capacity.

The ministry has consulted the Solar Energy Corporation of India – the federal entity charged with hitting national solar generation capacity targets – and state-owned power company the NTPC about possible alternative guarantees to ensure projects will be seen through to completion.

For the full story, please visit our pv magazine India website.

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