MNRE Eases Approval Process for CPSU Solar Parks

In an important step to streamline the approval process for solar farm development, the Ministry of New & Renewable Energy (MNRE) has announced exemptions for Central Public Sector Undertakings (CPSUs) and their joint ventures from seeking approval from the State Government Commission for Development and Operation of Infrastructure & maintenance costs (O&M).

This decision, communicated via an office memorandum, is in response to requests from Solar Power Park Developers (SPPDs) to simplify the approval process. As per the new guidelines, CPSUs and their joint ventures can submit their detailed project reports (DPRs) directly to the Solar Energy Corporation of India (SECI), the Indian Renewable Energy Development Agency (IREDA) and the MNRE. These DPRs no longer require review by state government commissions, significantly streamlining the process.

However, these SPPDs are still required to obtain approval from their respective boards for costs related to infrastructure development, O&M, land leasing and return on equity, to ensure compliance with the MNRE guidelines dated November 12, 2021.

For state government PSUs, the approval process remains unchanged, with DPRs and associated charges required to be approved by the state power, energy or renewable energy department. Similarly, private developers of solar/RE farms must continue to seek approval from the State Government Commission under the same guidelines.

The office memorandum, issued with the approval of Minister of Power and New & Renewable Energy Singh, aims to expedite the development of solar farms and enable smoother project implementation, thereby promoting rapid growth in India's renewable energy sector.