Business Line 23.05.2013
TN fast emerging a solar power destination
is the leader in wind power in the country. But in ‘solar’ the State
ceded the leadership position to Gujarat, which has over a 1,000 MW.
However, the growing solar project pipeline in Tamil Nadu suggests that
the State is fast emerging as a solar destination too.
With a project pipeline of over 700 MW, most of which
could come within one year, the State is gearing up to becoming a close
second to Gujarat.
Things have been happening ever since the State
Government brought in its solar policy last October. The bidding process
that was set in motion under the policy provisions has resulted in the
award of solar power projects worth 226 MW. Letters of intent have been
issued to the winning bidders. Apart from this 226 MW of projects, a
number of other companies have announced their plans to put up projects
in the State.
The Indarya group proposes to develop a 300 MW solar
project near Manamadurai. Another company, Raasi Green, has said it
would put up a 100 MW plant.
In addition to these, there are many companies who wish
to put up solar plant. For instance, a group of seven auto components
manufacturing companies are is putting up a 50 MW plant near Tiruchi.
Similarly, another group of chemicals and pharma companies, led by
Shasun Chemicals and Pharmaceuticals, is working on its own 50 MW plant.
Swelect Energy, formerly Numeric Power Systems, is planning to put up a
25 MW project, near Coimbatore.
While these are the large, ground-mounted projects,
several industries, and practically every educational institute in the
State, are working on putting up rooftop solar projects.
A number of factors seem to go in favour of Tamil Nadu.
First, industries in the Sstate are major users of the ‘accelerated
depreciation’ facility. The tax sop used to be available for wind power,
but was withdrawn with effect from April 1, 2012. Profit-making
companies therefore have only ‘solar’ to avail themselves of the AD
benefits.
Secondly, Tamil Nadu is the only State where projects
can come up not just through a competitive process, observes Vineeth
Vijayaraghavan, an industry expert and Founder-Editor of Panchabuta, an
online industry newsletter.
Third, the Sstate Ggovernment has brought in a ‘solar
purchase obligation’, which major specified consumers will have to meet.
This has created a demand for solar.
