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

23 Jul 2021 CW Team

Gujarat Urja Vikas Nigam Limited(GUVNL) has withdrawn its subsidy for small-scale distributed solar projects, affecting around 4,000 solar projects having an average capacity of 2,500 MW power.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Gujarat Urja Vikas Nigam Limited(GUVNL) has withdrawn its subsidy for small-scale distributed solar projects, affecting around 4,000 solar projects having an average capacity of 2,500 MW power.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

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..