Land acquisition, infra continue major impediments for timely completion of wind projs: Care

Even as the amendments have been made to bidding guidelines for wind projects in India, land acquisition and evacuation infrastructure will continue to remain major impediments for timely completion of such projects, according to a report.

Last week, the government made certain amendments to the bidding guidelines for wind projects to fast-track installation of such energy projects in the country.

As per the amendments, now the timeline for land acquisition for wind power projects has been extended from seven months to scheduled commissioning date i.e. 18 months.

This, the government said, will help wind power project developers in states where land acquisition takes longer time.

In a statement issued on Tuesday, rating agency Care Ratings said, "The revised bidding guidelines which allows wind power developers to acquire land on or before scheduled commercial date (SCD) i.e. 18 months, revise declared capacity utilisation factor (CUF) once within first three years of commercial operation date (COD) and incentivise early project completion would bode well for the wind energy sector.

"Care Ratings added that "it opines that the new amendments will benefit wind project developers. However, land acquisition and evacuation infrastructure continue to remain major impediments for timely completion of wind projects."