Private players say certain features in renewable energy policy are keeping investors away.
As a result of the confusion prevailing over the Renewable Energy Policy, the rate of renewable energy production has come down drastically to a mere 97 megawatts. This is much below expected levels, considering that the production was 321 megawatts and 174 megawatts in 2008-09 and 2007-08 respectively.
Stating that investors were not coming forward on account of all the confusion in that regard, private players said that it would be best if the policy were amended within a month.
Addressing a press meet, jointly organised by the Indian Wind Power Association and the Indian Wind Turbine Manufacturers’ Association, BS Shetty, president of the Indian Wind Power Association and the Indian Wind Turbine Manufacturers’ Association, said, “Though Karnataka is all set to emerge as the leader in renewable energy sources, there are a few features of the policy that may not be conducive to the sector’s growth.”
On March 13, a meeting convened by the World Institute of Sustainable Energies in association with the Karnataka Renewable Energy Development Ltd (KREDEL) had brought certain features to the notice of additional chief secretary K Jairaj and sought that certain changes be made to them. Though Jairaj had said that the changes would be made, no written assurance was given to any of the private players.
As per the Renewable Energy Policy, the current clause of equity has to be shared with farmers from whom the land was bought. It is with this factor that the power producers have a problem with.
Elaborating on the issue, U B Reddy, secretary, Indian Wind Power Association, said, “When the land is purchased at market price or above, there is no justification for equity sharing with farmers. The current clause of equity sharing is likely to hinder the expected largescale entry of Foreign Direct Investment and independent power producers.”
According to him, the compulsory sale of power to state utilities contradicted the provisions of the Electricity Act-2003, which recommended that open access be provided to them. “The policy also states that the assets, along with the land, must be returned to the government. However, this is not feasible. What right does the government have to claim these assets? In fact, the lease period of the land must be extended beyond 30 years,” Reddy said.
“If these amendments are not made within a month, investors won’t come forward for the whole of the financial year – leading to a delay in projects,” he added.
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