Gujarat paves way for more wind power

To encourage wind power generation and lure investors into the sector, the state government has recently passed a General Resolution (GR) allowing sub-lease of lands to be used for setting up wind farms. The new resolution also offers grazing lands for setting up wind farms.

The state finance department also have decided to frame a Land Policy to pave the way for more investment in the sector. The Pune-based Suzlon Energy Ltd and the Chennai-based NEG Micon India Pvt Ltd have already committed investment of over Rs 3,000 crore in the state.

However the government has not yet allowed third-party sale of power generated from wind farms. But sources in the state Energy Department said that the government has listened to the representations from the industry and from the Indian Wind Energy Association (IWEA) and a decision in favour of the wind power generation sector would be taken shortly.

The General Resolution says that last year the state government had organised 'Vibrant Gujarat-Global Investors' Meet,' in which it had signed MoUs with various corporates for setting up wind mills to produce 1100 MW of wind power. To implement these projects, 'a Land Policy is now has to be chalked up.'

The GR signed by Deputy Secretary of Finance Department, Mukesh Modi, also says that though earlier sub-leasing government land was not allowed which was discouraging for wind power energy sector, with the GR in place with immediate effect, sub-leasing would be allowed.

"The entity/entities which would take the land on sub-lease from the first leaseholder will only require to get the sub-lease agreement endorsed from the concerned District Collectorate. Government will also lease out land for setting up wind power stations for at least 20 years and price for the land would be decided by the Government's nominees in district administration. But if the cost of the land goes over Rs 50 lakh, a valuation committee would decide about leasing out the land," said a source close to the finance department.

Following this new norm, major companies like Suzlon and NEG would not be able to sub-lease lands to small industrial units like process house etc. who after borrowing technological know-how from the companies, would be able to run wind farms and thus, generate power for their captive usage.

According to the GR, for each one MW capacity of Wind Turbine Generator (WTG), one hector of land is required. Government will lease out land according to this calculation to private parties while the developer will also be given the Right of Way for WTG and transmission so that wind velocity for the WTG does not get disturbed because of construction in close by areas.

"This GR though does not cover all of the issues which were raised and represented by the industry and also IWEA, still it has ingredients to encourage the industry up to some extent, specially with the sub-leasing of land made approved now. We expect that state government would also take a concrete decision about allowing third-party sale of power generated from the wind farms as this will not only bring in more investment in the State but also help Gujarat to reduce its power crisis significantly," said a source close to Suzlon Energy.

"Even the third-party sale issue is being worked on by energy department along with industries and finance departments and we expect that government many also allow third-party sale of power, though there may be certain conditions," an official said.