NTPC Secures Largest Allocation Under CPSU Scheme Phase-II, Strengthening India’s Solar Energy Goals

NTPC Limited has secured the highest allocation under the Central Public Sector Undertaking (CPSU) Scheme Phase-II, as per data presented by the Ministry of New and Renewable Energy (MNRE) in the Rajya Sabha. The government, in response to Unstarred Question No. 941, revealed the allocation of Viability Gap Funding (VGF) to different CPSUs under the scheme, reaffirming NTPC’s leading role in India’s renewable energy transition.

In a written reply to Rajya Sabha, Minister of State for New and Renewable Energy and Power, Shri Shripad Yesso Naik, outlined various initiatives undertaken by the government to promote solar energy across the country. The CPSU Scheme Phase-II (Government Producer Scheme) was introduced to support the development of 12,000 MW of grid-connected Solar Photovoltaic (PV) power projects by government entities using domestically manufactured solar PV cells and modules. The scheme provides VGF support to ensure financial viability and facilitate clean energy adoption for self-use or government distribution.

The data shared in Rajya Sabha showed that NTPC received the highest allocation under the CPSU Scheme Phase-II across multiple tranches:

• Tranche I & II: NTPC secured ₹506 crore, with major allocations directed towards Rajasthan (₹380.1 crore) and Tamil Nadu (₹80.5 crore).
• Tranche III: NTPC emerged as the biggest beneficiary, receiving ₹581.94 crore for projects across Andhra Pradesh (₹22.45 crore), Gujarat (₹134.70 crore), Karnataka (₹112.35 crore), Rajasthan (₹311.97 crore), and Tamil Nadu (₹0.47 crore).

This cumulative support highlights NTPC’s crucial role in driving India’s renewable energy capacity expansion.

While NTPC dominated the scheme, other CPSUs also received funding under the initiative. Notable allocations included:

• Assam: ₹6.80 crore
• Bihar: ₹1.75 crore
• Telangana: ₹27.39 crore
• Gujarat: ₹145.91 crore (across Tranche II & III)
• Rajasthan: ₹692.07 crore (across Tranche II & III)

These investments underscore the government’s push to enhance solar energy capacity across states and promote sustainable energy solutions.

According to the MNRE’s report, India has already installed over 92 GW of solar capacity, with Rajasthan leading the country at 24,553.13 MW, followed by Gujarat (15,305.26 MW) and Karnataka (8,930.10 MW). The CPSU Scheme Phase-II is expected to further accelerate this growth, ensuring that government-backed solar projects play a critical role in achieving India’s renewable energy targets.