BENGALURU: Wind developers have expressed concern over Gujarat’s new land policy for renewable energy, announced about a month ago, as it does not make possession of a
power purchase agreement (PPA) mandatory while applying for land to set up a project in the state.
They fear that without such a provision, some developers could lock up tracts of land and deny others the chance to set up wind projects.
Gujarat is a favoured destination for wind developers due to its high wind speeds, especially in the Kutch area.
The policy states that all future projects will have to be built within parks identified by the state, and not at any spot identified by developers, which was the case before. The main criteria is that a developer should have either a manufacturing base in the state or a minimum operating capacity of 250 MW.
“But a PPA is not required,” said a developer. “I can buy land and do nothing with it, or sell it later at double my cost. Land brokers are already doing that in some states with good wind sites. They capture such land and dictate the price.” Every megawatt of
wind energy set up needs around 0.75 acres.
The policy does say that the park developer will have to develop a minimum 50% of the allotted land within five years and 100% within 10 years. But that still leaves ample scope for misuse.
Many developers have sent in applications to lease land in Gujarat since the new policy was announced. Some have asked for land to construct projects up to 10,000 MW, the maximum limit specified by the policy, which they surely do not immediately have projects for, sources close to the development said.
“Applications are being collected at the local level. They have not reached us yet,” said Pankaj Joshi, additional secretary in Gujarat’s revenue department, when asked how the government would prevent land being locked up.
Gujarat
Power Corporation Ltd (GPCL), the nodal agency that will process the applications, could not be reached for comments. A lease rent of Rs 15,000 per hectare will be applicable at the time of taking possession.
Following the new policy, new or small sized developers with no record of operating capacity or a manufacturing unit will not be able to set up units in Gujarat, even if they have won PPAs.
“Large developers will lock in the best resource in the country. What will the rest of us do?” asked one of the smaller developers. “Developers will have to go to states like Andhra Pradesh and Karnataka, which will cost them more. This will increase the wind tariff. If land prices rise in Gujarat with land being locked up, the overall effect again will be higher tariffs. I am upset because I am a new independent power producer (IPP) and I am going to be locked out of Gujarat.”