BANGALORE: The no-incentive policy and many clearances to be obtained from various organizations is proving to be deterrent in Karnataka’s solar sector investments. But the state government says the new solar policy is ‘liberal’ and ‘attractive’. The policy has been formulated and is to be presented before the Cabinet on Thursday.
Speaking at the curtain raiser of Green Summit 2014, to be held at Manpho Convention Centre and White Orchid between June 5-7, state minister for Energy D K Shivakumar said that they are aware of the problems in the sector and are looking into it. The industry too is putting a lot of pressure on the state to incentivize the policy which will give the investors a better return.
“In the initial years, the need is to introduce enough incentives for people to invest good money. We have recommended a single window clearance and some exemptions in VAT etc to get more people interested,” said Ramesh S, chairman of Renewable Energy Committee, Federation of Karnataka Chambers of Commerce and Industry (FKCCI).
Speaking about land conversion, the state minister said they are looking to liberalize Section 109 too. The state is also in the process of creating a ‘land pool’ wherein people can buy land from the state and not from the farmers directly.
Green Summit 2014
An annual renewable energy event supported by the Government of Karnataka, Green Summit is a platform to promote the exchange of ideas and to help everyone stay updated on industry developments, technology, market and policy trends. Being organized by FKCCI and MM Activ Sci-Tech Communications Pvt. Ltd., government decision makers, industry representatives, investors and customers will all come together on one platform to address critical issues about growth and adoption of renewable energy.
A comprehensive research report addressing the business potential of the RE (Renewable Energy) industry, challenges towards energy scarcity and impact on industrial growth and economic progress will be released during the event.
P Ravikumar, additional state chief secretary of Energy said that they need to draw up a new Renewable Energy policy. “The price of renewable energy is falling while the price of fossil fuel energy is increasing. Financing is a major problem for RE in India and we should meet all stakeholders and sort the issue out,” he said.
Power shortage in the state?
“I still stand by my statement that there is sufficient power. For a few days there was a shortage because of transmission problems but we are largely self sufficient,” said the state Energy Minister D K Shivakumar.