Lack of clear guidelines ad non execution of power purchase agreements (PPAs) by the Maharashtra government were cited as the main hurdles in the growth of the renewable energy sector in the state by Tulsi Tanti, the chairman and managing director of Suzlon Group.
Tanti, who was addressing the media in Pune on Tuesday, also said that the state government is not doing enough in terms of setting up captive power plants and there were delays in clearing dues. He said that as the state is energy deficient, more focus is necessary towards meeting the discrepancy from renewable energy sources.
“In Tamil Nadu, the state government encourages small and medium enterprises (SMEs) to set up captive wind power plants to meet their energy requirement. There are more than 4,000 textile units in Tamil Nadu which have such plants,” Tanti said.
While Maharashtra has a policy for such set-ups, the policy level roadblocks make it non-feasible for SMEs to get such set-ups, the industrialist said. “The state needs to have a relook into the captive power policy. Also, there is not enough promotion of the policy,” Tanti said, adding that captive wind power plant can be useful in promoting the Make in India campaign of the central government.
The issue of execution of PPAs has been a long standing grouse against the state government from the renewable energy sector. Industry insiders said that investments in the sector had trickled down in the face of reluctance of the state government to commit in purchasing energy generated off grid.
The state government had cited high cost of renewable power generated as the reason for delay in execution of PPAs. Tanti, however, said that the price of per unit energy is determined by the regulatory board. While Maharashtra has been an early mover in the case of wind power, the state is fast losing its hold in the sector. States like Madhya Pradesh, Andhra Pradesh, Gujarat and Rajasthan are fast set to overtake the state.