GUVNL pulls back subsidy of 4,000 projects of 2,500 MW
POWER & RENEWABLE ENERGY

GUVNL pulls back subsidy of 4,000 projects of 2,500 MW

Gujarat Urja Vikas Nigam Limited(GUVNL) has withdrawn its subsidy for small-scale distributed solar projects, affecting around 4,000 solar projects having an average capacity of 2,500 MW power.

The power purchase price was Rs 2.83 per unit, which was already lower than other states such as Maharashtra and Rajasthan, where the Power Purchase Agreement (PPA) tariff rates were set higher than Rs 3.15 per unit.

In March 2019, the government announced the policy for the development of small-scale distributed solar power projects to encourage the distributed generation of solar power. This scheme was supposed to encourage PM Narendra Modi's ambitious renewable energy targets.

Gujarat's power companies distribution generation was expected to reduce transmission losses, farmers get electricity throughout the day, benefit the environment, and even benefit the Centre and state government from Goods and Services Tax (GST) revenue.

According to the policy, eligible entities can set up a solar power plant of capacity from 0.5 MW to 4 MW and supply the generated power to the nearest Gujarat Energy Transmission Corporation Limited (GETCO) substation.

About Rs 100 crore have been invested by Micro, Small and Medium Enterprise (MSME) for registration with distribution companies (discom) or Gujarat Energy Development Agency (GEDA) to discoms PGVCL, UGVCL, DGVCL, and MGVCL (Paschim, Uttar, Dakshin, and Madhya Gujarat Vij Company Limited, respectively) through advanced charges for the transmission line, supervision, and connectivity. Rs 1,000 crore have been invested by the developers and proposed to invest Rs 10,000 crore.

Gujarat's state government is now apprehensive in providing the promised subsidies. It has also decreased investor sentiment who are looking to switch to the states that give higher returns. It will effectively negate the state's effort in incentivising and building a green state.

The Associated Chambers of Commerce and Industry in India, ASSOCHAM, and other solar industries have also directed that these solar projects will provide employment opportunities to more than 30,000 people for 25 years.

Image Source


Also read: Gujarat's RE power capacity to be around 61,466 MW by 2030

Gujarat Urja Vikas Nigam Limited(GUVNL) has withdrawn its subsidy for small-scale distributed solar projects, affecting around 4,000 solar projects having an average capacity of 2,500 MW power. The power purchase price was Rs 2.83 per unit, which was already lower than other states such as Maharashtra and Rajasthan, where the Power Purchase Agreement (PPA) tariff rates were set higher than Rs 3.15 per unit. In March 2019, the government announced the policy for the development of small-scale distributed solar power projects to encourage the distributed generation of solar power. This scheme was supposed to encourage PM Narendra Modi's ambitious renewable energy targets. Gujarat's power companies distribution generation was expected to reduce transmission losses, farmers get electricity throughout the day, benefit the environment, and even benefit the Centre and state government from Goods and Services Tax (GST) revenue. According to the policy, eligible entities can set up a solar power plant of capacity from 0.5 MW to 4 MW and supply the generated power to the nearest Gujarat Energy Transmission Corporation Limited (GETCO) substation. About Rs 100 crore have been invested by Micro, Small and Medium Enterprise (MSME) for registration with distribution companies (discom) or Gujarat Energy Development Agency (GEDA) to discoms PGVCL, UGVCL, DGVCL, and MGVCL (Paschim, Uttar, Dakshin, and Madhya Gujarat Vij Company Limited, respectively) through advanced charges for the transmission line, supervision, and connectivity. Rs 1,000 crore have been invested by the developers and proposed to invest Rs 10,000 crore. Gujarat's state government is now apprehensive in providing the promised subsidies. It has also decreased investor sentiment who are looking to switch to the states that give higher returns. It will effectively negate the state's effort in incentivising and building a green state. The Associated Chambers of Commerce and Industry in India, ASSOCHAM, and other solar industries have also directed that these solar projects will provide employment opportunities to more than 30,000 people for 25 years. Image Source Also read: Gujarat's RE power capacity to be around 61,466 MW by 2030

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?