NVVN Phase I Financial Closure

MNRE had given a deadline of 9th June 2011 for financial closure for PPA holders of NVVN’s phase I. This deadline was extended by 30 days to 9th July.  In the first week of July, the MNRE came out with a statement that the financial closure documents need to be submitted by 24th July.

It looks like many PPA holders have submitted a pure statement undertaking the responsibility to raise funds for their projects. Some of the submissions have not been as expected- equity investment proof and bank term sheet. So the current number of actual projects having achieved financial closure is still not sure.

NVVN officials are expected to study the submissions and come out with a statement in this week.

If projects with pure undertaking statements (as stated above) and no real financial closure proof are allowed another deadline, we will see a huge delay in the solar on-grid market. A lenient approach here will make Gujarat PPA holders hold on further to their unrealistic demands on financing; delaying the actual implementation of solar energy in India.

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