Investments of ₹1.5L crore in Solar Sector Stuck as State Govt Delays Land Allotment | Jaipur News - Times of India

Source: The Times of India
Author: Srikanta Tripathy

Jaipur: The state govt has formed a committee having secretaries of finance, energy, revenue, industries and planning departments to decide on allotment of land to the country's leading solar power developers like Adani, ReNew, Acme, and JSW as the delay has stalled investments of about Rs 1.5 lakh crore.

In April 2022, the board of investment led by the former chief minister approved customised packages to 12 companies.While the companies wanted 75,000 hectares for projects of around 40,000MW, so far, the govt has allotted only 2,200 hectares, said sources.

"The govt's decision to not allot land has deprived the state over Rs 1.5 lakh crore of investments in the solar sector. There is a feeling in some quarters of the bureaucracy that solar developers have no option other than Rajasthan given the state's large barren land parcels. However, it would be a big mistake if they carry this feeling into policy making," said an investor, preferring anonymity.

The customised package also extended the state GST refund, but even after the approval of the packages by the apex investment approval authority, the finance department has not issued the orders for the same.

"When a panel headed by the chief minister approves something, one expects that to be sacrosanct and implemented. But in Rajasthan, as the experience shows, it seems the finance department under the previous regime has junked the approval given by the former CM in April 2022," said an official of the company that received the customised package.

Customised packages carry other benefits which are beyond what is given under the Rajasthan Investment Promotion Scheme and are given to projects having minimum investments of Rs 500 crore or more.

While awarding customised packages in 2022, the govt remained silent on terms of land allotment which it is now using as a reason for denial, albeit informally.

Sources in the govt said that those companies that have already won projects through biddings will be considered for land allotment. However, there is no rule to back such a decision and has prompted investors to raise questions.

"The govt should clearly lay down the policy that projects having power purchase agreements will only be given land. Investments coming for customised package clearance at the board of investment level are scrutinised at several levels. How can the govt deny them land? If they are not giving, they should state it clearly," said another representative of a company.

In fact, the general view is that the govt should be interested in investments and allot land with a set of rules so that the proposed project comes up in time. Whether a company has bagged projects from auctions or it has plans to use the power for its own use should not be the criteria for land allotments and investments.