Implementing renewable energy power projects should be easy: MNRE to states

The Ministry of New and Renewable Energy (MNRE) has written to various state governments, asking them to ease up procedures for implementation of renewable energy (RE) power projects.

The MNRE has also removed the mandatory registration for RE projects with respective state nodal agencies as well as recommendation by the latter for clearances.

The ministry's move comes in the wake of complaints received by MNRE regarding misusing of the process of registration in certain states.

For instance, it has found that Gujarat's nodal agency Gujarat Energy Development Agency (GEDA) had stopped performing work connected to wind power projects, except those of the state government. In fact, the MNRE has requested the GEDA to work on wind power projects irrespective of the source of the bidding agency. 

"It has been reported by various wind developers and IWTMA (Indian Wind Turbine Manufacturers' Association) that in response to the said office memorandum, GEDA has stopped the work on wind power projects, except those of Gujarat government," MNRE told the Gujarat government in a recent letter, a copy of which is with Business Standard.

Apparently, in an office memorandum sent on June 12, 2018, MNRE had issued a clarification stating that mandatory registration with state nodal agencies for implementation of RE power projects was no more required. Further, the recommendation from state nodal agency as a pre-condition for various clearances was also done away.

However, despite the clarification, wind power developers and IWTMA brought to the MNRE's notice that, in case of Gujarat, district collectors were even asked by the state revenue department to process land allotments for only those wind projects that are bid through state discom Gujarat Urja Vikas Nigam Limited (GUVNL).

On its part, the Gujarat government has stated that it was being cautious in its approach, while allotting land to only genuine projects, apart from ensuring that there was at least some benefit accruing to the state.