Honorable minister conducts meeting with solar project developers to decide on the issue of accelerated depreciation

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Meeting was chaired by Hon’ble MOS I/C (Power, Coal), GOI, on 31st Jan.’2015 regarding Accelerated Depreciation on RE projects and other policies related issued.

Present on dais were: JS/MNRE (Mr Tarun Kapoor / Ms Varsha Joshi), CMD/NTPC, MD/SECI.

A large number of companies participated and spoke. Suggestions were given by large number including from  – Renew Power, ReGen, Azure, Welspun, ACME, Hero, Vikram Solar, IndoSolar Interocean, Ojas Solar, Inox, Essel Infra, IL&FS, FirstGreen, Green Infra, First Solar and others.

The following points noted down based on the suggestions were as follows :

Few suggestions:

1) AD is discriminatory. While continuing with AD, GOI should provide level playing ground to IPPs ex: financial (interest subversion, soft loan, tax free bond,     multilateral funds) or tax solutions (waiver of MAT) etc. The Govt policies should be made to stay for long term.

2) Solar parks/programs: Progress is slow, issues remain un-resolved, parks by Developers should be allowed. One-third of scope related to pooling and evacuation is beyond scope of Developers and therefore have no effective control over the same.

3) State govts are not yet not ready to meet challenge of meeting 100 GW target by year 2022.

4) Only very few schemes under DCR, no orders with manufacturers,

5) Evacuation: There are serious issues where power from RE projects is curtailed presumably due to imbalance in grid.  To be resolved by SLDC/RLDC/NLDC. Storage facility may be considered to overcome this problem (eg hydro Pump-lifting stns.). inter-state transfer of power not allowed etc.

6) Inter-cropping: Tariff for new WEGs at locations of old WEGs should be revised and not be linked to the old PPAs.

7) Etc.

The MOS was favourable to the ideas and suggested that representatives from a few companies (ACME,  Ajure, First Solar, Regen, Renew Power, Ojhas, Welspun etc.) should meet JS/MNRE and give suggestions to be put to MOS.

 

The response from MOS were :

  1. The Developers should not give any unrealistic commitments under the Green Energy Certificates. Each case will be monitored by MOS.
  2. AD will continue in future. Govt is not contemplating any review of present policy.
  3. Duel tariff is not feasible. Should compare the NAV of two cases on basis on life cycle operation of RE projects.
  4. Ready to look in to suggestions, providing level playing ground to IPPs and take up matter with FM.
  5. No fresh subsidy linked schemes will be announced in RE.
  6. MNRE has called a meeting with state govts for resolving interstate issues.
  7. He is taking regular review of loading of the domestic manufacturers. They should ramp up the capacities for products with state of the art technology.
  8. The import of solar products should not continue for long in future and should curtain in next couple of years.
  9. Competitive bidding should replace FIT in RE business.

 

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