The central government has taken a significant step in the solar power sector through the approval process to establish solar parks. According to new guidelines, from now on  Central Public Sector Undertakings (CPSUs) and their joint ventures can submit detailed project reports (DPRs) directly to the Ministry of New and Renewable Energy (MNRE), eliminating state government approval. This approval process aims to accelerate the setting up of nationwide solar and renewable energy parks. Nevertheless,  the entities must seek approval from their respective boards for infrastructure charges, land leases, and return on equity. As an outcome, there will be a boost in the installation of solar parks which support India’s renewable energy goals. 

According to a recent memorandum, Central Public Sector Undertakings (CPSUs) and their Joint Ventures (JVs) can submit directly to the  SECI, IREDA, and MNRE, instead of the approval from the state committee. Uttar Pradesh government highlights this statement on their website, invest up by saying that this policy aims to simplify the processes and speed up the creation of solar and renewable energy parks across the country.

However, the companies must still seek approval from their respective boards for charges related to the development of infrastructure, land leases and return on equity, as per the guidelines.

Industry leaders have appreciated the approval process for creating solar parks, stating that it will set up more solar installations in the country.

Tanya Singhal, the founder of Mynzo Carbon and SolarArise states “The demand for solar energy is rising in the country YOY. Establishing a solar plant is a challenging task like building infrastructure and buying land. Solar parks simplify this process by providing land and infrastructure thus making the process faster and easier. This government’s support is expected to increase the installation of solar plants. From which  India would achieve its aim of 500 GW renewable energy and getting 50% of its total electricity from clean energy sources by 2030,” 

In conclusion, this initiative will bring a transition toward renewable energy in India and aligns with India’s aim of achieving clean energy and generating electricity from it. As a result, it will benefit both the economy and the environment.

Source 

Our perspective 

From this initiative, the government is helping to install more solar parks thus making the process easier for the installation and companies as well. This will have a positive impact on the country by reducing carbon footprint and promoting sustainability. Encourages consumers to adopt solar panels and the company will be investing in such projects. Thereby accelerating India’s economic growth.