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Land acquisition issues a hindrance for solar power plants in Maharasthra

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solarpowerWednesday, April 30, 2014: Maharashtra’s state run power utility Mahagenco had earlier shared its plans to commence the work on two solar power plants in Osmanabad and Parbhani districts, but the issues related to land acquisition have emerged as a major hindrance in the process. However, the work has started on a new plant in Baramati, which was planned after these two aforementioned plants.

The land acquisition issues involved with the two solar plants has hit the company’s obligation of buying solar power. According to estimates, the solar capacity of Mahagenco should have been 344 mw in 2014-15 for meeting the obligation. It has been able to reach only 155 MW at present. The deficit is courtesy the solar capacity of another 125 mw, that was planned by 2013-14 but could not materialise.

According to a TOI report, some source in the state-run power utility said that the company aims to to increase its solar generation by another 500 mw by 2015-16. The report quoted the sources as saying, “The first phase of expansion of 125 MW that includes 100 MW plant in Kudgaon (district Osmanabad) and 25 MW in Gangakhed (district Parbhani) has not been completed. The land acquisition problem is being sorted out. In the meantime, we decided to set up a 50 MW plant in Baramati where land was readily available. Work is progressing on it. It is the first solar plant being built on public-private partnership (PPP) model with revenue sharing mechanism for 25 years. Welspun Energy is our operator for the plant.”

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The Baramati solar plant will be executed in two phases. In the first phase, Mahagenco will set up 36 mw capacity plant on 74 hectares, that is already acquired. The remaining 14 mw capacity will be installed with same terms and conditions after acquisition of balance 29.97 hectares of land.

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