Cabinet revises solar power target to 1 lakh Mw by 2022

Some basic info to understand this news better:

• The Jawaharlal Nehru National Solar Mission (JNNSM)also known as the National Solar Mission is one of the several initiatives that are part of National Action Plan on Climate Change.The program was inaugurated2010 with a target of 20GW by 2022 ..
• But considering its international commitment towards Green and climate friendly growth trajectory, the Government of India has taken this path-breaking decision to revise the target to 1 lakh Mw.

Now, the news:

• The Cabinet on Wednesday approved the revised target of Jawaharlal Nehru National Solar Mission (JNNSM) to generate 100,000 Mw by 2022 — five times the previous target.
• The target will comprise 40 Gw power generated through rooftop units and 60 Gw through large and medium scale grid connected solar power projects.
• The total investment in setting up projects with capacity of 100 Gw will be around Rs 6 lakh crore.
• In the first phase, the Centre will provide Rs 15,050 crore as capital subsidy to realise solar power capacity addition. This subsidy will be provided for rooftop solar projects in various cities and towns, for viability gap funding (VGF)-based projects to be developed through the Solar Energy Corporation of India and for decentralised generation through small solar projects.

Know more on this news topic:

• Viability gap funding: There are many projects with high economic returns, but the financial returns may not be adequate for a profit-seeking investor. For instance, a rural road connecting several villages to the nearby town. This would yield huge economic benefits by integrating these villages with the market economy, but because of low incomes it may not be possible to charge user fee. In such a situation, the project is unlikely to get private investment. In such cases, the government can pitch in and meet a portion of the cost, making the project viable. This method is known as viability gap funding.