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Solar power projects with a combined capacity of over 750 Mw have been stranded in the state due to lack of clarity in the government's policy, according to the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci).
The state government announced its solar power policy on September, 26, 2012. Following this, applications worth more than 750 Mw were submitted and many more are in the pipeline. However, so far not a single approval or clearance was accorded.
The policy did not envisage any investment subsidy from the government or the power utilities. "Yet, to the utter discomfiture of the industry and solar power developers, the clearances and much needed clarifications and rules, as required by the policy, have not been forthcoming," Fapcci stated in a press release here on Tuesday.
According to Fapcci, clarity is required on issues pertaining to banking of power, wheeling agreement, transmission and wheeling charges, cross subsidy and maximum demand related charges and rules. "These are very essential for effective implementation of the policy. If these issues are cleared, 1000 Mw power capacity could be created in six months," the industry body stated.
FSME also finds faults with government policy
The Federation of Small and Medium Enterprises of Andhra Pradesh (FSME-AP) also said that the current power crisis in the state was due to the "state government's faulty policies". Its president, APK Reddy, stated in a separate press release that FSME was even willing to join the agitation launched by the communist parties against the state government in this regard.
