The Government of India had announced a National Green Corridor Program (NGCP) worth Rs. 43,000 Crore in 2013 so as to enable the flow of renewable energy into the National Grid Network. The modalities for the entire project had been conceptualized by the Power Grid Corporation of India (PGCIL) and approved by the Ministry of Power.

The NGCP aims to synchronize the power from renewable sources of energy such as solar energy and wind energy with power from conventional power stations as part of the National Grid Network.

Developed countries such as Germany and the United States of America, which have experience and expertise in incorporating renewable energy into the grid network, have committed developmental and technical assistance towards the NGCP. The NGCP forms part of the overall reform plans of the Government of India of strengthening the transmission and distribution network, by introducing the Smart Grid which can handle fluctuations in demand and supply of power across the country. As per the Ministry of Power, the intra-State grid upgradation would be undertaken by the PGCIL while inter-State grid upgradation would be handled by the various State utilities.

PGCIL has operationalized the second phase of the NGCP and has allocated a transmission project in Andhra Pradesh, while completing the tendering process for projects in Madhya Pradesh and Karnataka. All these transmission projects will carry electricity generated from the ultra-mega solar power projects set to be developed in these states. The auction of projects under the ultra-mega solar power projects sector is yet to start, but all three states have already allocated several hundred megawatts of traditional solar power capacity through auctions under their respective state-wide solar power policies. The first phase of the program is designed to allocate 33 GW of solar and wind power, while the second phase will cater to 22 GW of capacity.

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