Renewable energy project developers who had bid for projects in Gujarat are nonplussed by the State recently notifying a new land allotment policy.

The State government has issued a policy for allotment of government waste/non-perilous land for Renewable Energy Generation Park. Under the policy, it has decided to earmark land to set up wind, solar, wind-solar hybrid parks with a capacity of 1,000 MW and above. The land for these projects will be identified by a Committee.

“Initially, the land required for about 30,000 MW of power capacity will be fixed. Out of which 10,000 MW of power capacity will be reserved for State government companies. This means that one-third of the land will be reserved for public enterprises and remaining land can be given to other applicants,” the policy said.

This brings much needed clarity for renewable energy project developers who opt to set up renewable energy projects in the State.

But the policy, which is enforceable from January 25 for a 10-year period, is mum on projects that have already been bid out. “The policy provides no clarity on the projects that are in the pipeline to be set up in Gujarat,” an official with a renewable energy project developer said.

The Centre had recently stepped in to resolve the dispute between wind power project developers and the Gujarat State government over land allocation.

Project developers had alleged that the State was not leasing land for wind projects auctioned by central agencies such as SECI. This had jeopardised 2,000 MW of wind-based power generation projects expected to come up in Gujarat.

Under the policy issued earlier this week, the Gujarat government has said that it will now be mandatory for the tender issuing authority (Solar Energy Corporation of India) to consult with Gujarat state departments before issuing tenders for wind or hybrid project capacities to be set up in the State.

Till now, SECI used to call for centralised bids to procure renewable energy and project developers were free to set up their projects anywhere in the country.