The Federation of Andhra Pradesh Chamber of Commerce and Industries today said about 750 MW of solar power projects are stranded for want of clarity in policy issues and clearances in Andhra Pradesh.
While the State Government announced its Solar Power Policy in September 2012 seeking to encourage solar power projects, those at various stages of execution were impacted by a lack of clarity, it said.
Enthused by the State’s interest to tap solar power, developers who had initiated projects were still unable to complete them due to local issues. Applications for about 750 MW were submitted and many more are in the pipeline awaiting clarity, Devendra Surana, President, Fapcci, said.
The policy did not envisage any investment subsidy from the Government or APTransco or AP Discoms. Yet, to the discomfiture of the industry and solar power developers, clearances and much-needed clarifications and rules have not been forthcoming.
The AP Electricity Regulatory Commission, AP Transco and AP Discoms have not clarified though more than six months have elapsed since the policy was announced.
So far not a single approval has been made or clearance received or policy movement made, the Fapcci said.
The clearances relate to banking of power, wheeling agreements, transmission and wheeling charges, cross-subsidy and maximum demand related charges and rules. These were essential for effective implementation of the policy, it said.
If these issues were cleared immediately, 1000 MW of power capacity could be added from solar power within six months, he said.
Meanwhile, technical bids for solar projects have been approved and a final decision would be taken in line with the new solar policy.