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For central government offices, PSUs, defence establishments, Indian Railways, central autonomous bodies

Central Public Sector Undertaking (CPSU) Scheme Phase II

All States and UTs — Pan India · MNRE / SECI; for Central Govt. offices, PSUs, defence, railways

Solar energy — Central Public Sector Undertaking (CPSU) Scheme Phase II

For central government offices, PSUs, defence establishments, Indian Railways, central autonomous bodies in All States and UTs — Pan India — this guide covers the Central Public Sector Undertaking (CPSU) Scheme Phase II. Administered by MNRE / SECI; for Central Govt. offices, PSUs, defence, railways. Below are subsidy rates, eligibility, technical rules, documents, and scheme process.

Subsidy benefits

  • VGF: Rs.7.15 crore/MW (for DCR projects)
  • Central govt/PSUs pay discounted tariff to developer
  • no direct outflow for building owner

Authority and scope

  • Government body: MNRE / SECI; for Central Govt. offices, PSUs, defence, railways
  • Nodal agency: SECI
  • Eligible for: central government offices, PSUs, defence establishments, Indian Railways, central autonomous bodies
  • Installation type: Ground-mounted + rooftop solar on government/PSU land using DCR panels

Eligibility and disbursement

  • Open to multiple consumer categories.
  • Income restrictions: Only Central Government entities, PSUs, autonomous bodies, and defence.
  • Disbursement timeline: Project installation: 18–24 months
  • Disbursement mode: VGF to developer on milestone basis via SECI

Net metering and technical rules

  • Net metering availability is not listed.
  • Net metering policy: Not applicable — grid injection under PPA with DISCOMs / STUs.
  • Gross metering policy: Long-term PPA model (25 years); tariff discovery through reverse auction.
  • Hybrid policy: DCR mandate; solar + BESS projects now encouraged under Phase II Amendment (2024).
  • DISCOM requirements: Power supplied to grid; consumed by CPSU/govt entities via PPA.

How to apply

SECI issues RfP on behalf of MNRE

Developers bid; DCR compliance mandatory

SECI signs PPA with winning developer

Developer installs on allocated govt / PSU land

SECI back-to-back PPA with CPSU / govt entity

Power supplied; SECI releases VGF to developer

Documents required

  • Government entity authorisation letter
  • Land allocation proof
  • DCR compliance declaration
  • Techno-commercial bid as per RfP

Additional details

  • Scheme budget: 12,000 MW target with VGF support from MNRE; ~Rs.8,580 crore VGF outlay
  • Target beneficiaries: Central government buildings and PSU establishments. Uses Domestic Content Requirement (DCR) solar cells and modules.
  • Progress: Phase I: 1,000 MW tendered; Phase II ongoing at 12,000 MW. Indian Railways: target 20 GW solar by 2030 (3 GW+ installed already). Defence solar: 1,000 MW+ installed on defence land.