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Solar projects held up due to absence of clear policy

Solar projects held up due to absence of clear policy

The Federation of Andhra Pradesh Chamber of Commerce and Industries on March 26 stated that about 750 mw solar power projects are stranded for want of clarity in policy issues and clearances in Andhra Pradesh.

The Andhra Pradesh Government announced its Solar Power Policy in September 2012 seeking to encourage solar power projects. But projects already under various stages have been impacted due lack of clarity, it said.
Enthused by StateÂ’s interest to tap solar power, developers who had initiated projects are still unable to complete them due to local issues.

Applications for about 750 mw were submitted and many more are in the pipeline awaiting clarity, Devendra Surana, president of Fapcci, said. The policy did not envisage any investment subsidy from the Government or the APTransco or AP Discoms. Yet, to the discomfiture of the industry and solar power developers, clearances and much-needed clarifications and rules have not been forthcoming.

AP Electricity Regulatory Commission, APTransco and AP Discoms have not clarified in spite of more than six months elapsing since the announcement of the policy. The clearances relate 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, it said.

If these issues are cleared immediately, in few months 1000 mw power capacity could be added from solar power within six months, Surana said.

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