PSUs eye JVs with states to overcome land hurdles in large solar projects, Pg13

Key Highlights:

• PSU companies are forming joint ventures (JVs) with state governments to overcome land acquisition hurdles for large solar power projects.
• Under the JV model, state governments gain equity in exchange for facilitating land availability.
• NTPC Green Energy Ltd (NGEL) is pursuing JVs with Rajasthan, Andhra Pradesh, Madhya Pradesh, Maharashtra, and Chhattisgarh.
• NHPC, SJVN, and NGEL have floated state-specific JVs for solar projects.
• Land acquisition requires 4-7 acres per MW and is a major hurdle for solar capacity expansion.

Detailed Insights:

• JV partnerships give states a direct stake in project execution, streamlining land acquisition processes.
• States can monetize previously unutilized land through these joint ventures.
• The Parliamentary Standing Committee on Energy noted that JVs improve coordination with states, reducing litigation and delays.
• Land acquisition is crucial for utility-scale solar projects, requiring vast contiguous land areas.
• The MNRE estimates a need for 1.4-2 million hectares to fully harness India's solar potential.
• Land suitable for solar projects often overlaps with agricultural or ecologically sensitive areas, creating conflicts.
• Fragmented land ownership and varying compensation rates across states further complicate land acquisition.
• A CAG report in August highlighted land non-availability as a primary reason for solar project delays.

Key Concepts Involved:

• Joint Venture (JV): A business agreement where parties share investments and responsibilities.
• Land Acquisition: The process of obtaining land for development projects.
• Utility-Scale Solar: Large solar power installations designed to supply electricity to the grid.