Modi policy stalled solar projects, Gujarat’s economy affected due to incomplete target

Gandhinagar, 2 June 2023

The world’s largest solar power wind park of 30,000 MW capacity is being built at Khavda in Kutch district. Which was to be completed in December 2026. The state government announced a new policy to remove restrictions on solar power generation capacity to help achieve the target of 30,000 MW generation by 2022. But these projects have stalled. That’s why the government is once again changing the policy.

Economy of Gujarat
Gujarat’s world’s largest solar power project is delayed because Modi’s solar power policy gone wrong. That’s why India is considering reducing tax to increase imports from China. The pace of solar energy program has slowed down in the country as well as in Gujarat. That’s why India is considering reducing the tax on solar panels imported from China. It is considering reducing import duty from 40 to 20 percent and GST from 12 to 5 percent.

Adani’s biggest solar project is going on in Gujarat. A solar project being built in Gujarat by Fortum India, a subsidiary of Finnish solar power company, has been delayed by several months.

50 percent electricity was to be provided by December-2024 with an investment of one lakh crore rupees. Production was about to begin. Modi’s friend Adani Company and elsewhere have given land to Reliance. Gujarat alone accounts for 22 per cent of the country’s solar rooftop power generation. That is, Gujarat is on top in solar rooftop power generation. Now there are difficulties in this.

12267 MW electricity is being generated in Gujarat from renewable energy. 20 thousand MW was to be done by 2022, now it has been delayed by one year. By 2030, 67 thousand MW electricity was to be generated. Not now. Out of which 20 thousand MW electricity was to be given to other states, now that work has stopped.

Approval of 5192 projects was sought in the three months from October to December 2020 for small solar power projects of 500 kW to 4 MW capacity in the state. No one asks for approval so fast anymore.

Gautam Adani’s company Adani Green Energy Ltd. (AGEL) will set up 10,000 MW power generation capacity. It will have 8,000 MW of solar and 2,000 MW of wind power generation. Adani Group will spend Rs 500 crore for this. 30,000 crore is being invested.
One lakh hectares of land was left fallow in Khavda. Out of which 72,600 hectares of land was approved by the Ministry of Defense for setting up a solar park.

Which companies are affected in Gujarat
Solar-wind hybrid capacity (MW)
1 Gujarat Industrial Power Company Limited (GIPCL) 2375 (MW)
2 Gujarat State Electricity Corporation Limited (GSECL) 3325 (MW)
3 National Thermal Power Corporation Limited (NTPC) 4750 (MW)
Adani Green Energy Limited (AGEL) 9500 (MW)
5 Surjan Realty Limited (SRL) 4750 (MW)
6 Solar Energy Corporation of India Limited (SECI)
Total 27700 MW 72400 hectare land has been given.

An appeal will be made to the GST Council to reduce the GST rate. In fact, in April 2022, the government had imposed 40 per cent tax on solar panel imports and 25 per cent tax on solar cell imports. So that there is panel production within the country, but the country’s manufacturers have not been able to produce enough to meet the demand for these panels and cells. Modi’s thinking was wrong. Renewable energy targets are not being met.

Solar project
The introduction of solar projects in the country was affected by the imposition of 40 per cent import tax. This led to a shortage of these products and slowed down the work on solar projects. Due to which India could not even achieve its targets of solar energy production. The target was to install 100 GW of solar power in 2022, but according to some reports only 63 MW could be achieved. The project is expected to provide electricity to about 2,00,000 homes.

Even before this year’s general budget, Indian solar companies had demanded the government to reduce this tax rate. The companies said that the introduction of solar projects in the country has been affected due to the imposition of 40 per cent import tax.

GST rate is also a big part of the problem. About four years ago, the GST on solar projects was only five per cent, which was later increased to 8.9 per cent and then to 12 per cent. The companies were demanding to reduce it to five per cent.

China’s hold on the solar market
Since 80 percent of the world’s solar components are made in China alone, China still has a strong hold on the international solar market. According to a report, India imported solar panels worth three billion dollars in 2020-21 and more than 90 percent of these panels came from China.

India aims to generate 500 GW of electricity from renewable energy sources by 2030, up from 180 GW at present.


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