Uncertainty Looms Over India's First Ultra Mega Solar Project

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Researched by Industrial Info Resources India (Delhi, India)--The fate of India's first ultra mega solar power project (UMSPP) hangs in the balance, as the state government of Rajasthan questions the ecological and environmental impact of the project at the proposed site, which is arguably home to migratory birds and meant for production of salt. The 4,000-megawatt (MW) project was to be built in multiple phases along the bank of Sambhar Lake, India's largest salt lake, in the northwestern state of Rajasthan, and is touted as a showpiece for India's solar ambitions. However, analysts and critics have cited a political angle to the state's argument.

In an official communiqué to India's Central Government the state Chief Minister Vasundhara Raje has contended that the area under consideration is a prime site for migratory birds and construction of power plant or transmission line would affect the ecology of the area.

The objections raised by the state government could be embarrassing for Prime Minister Narendra Modi, who has vowed to push renewable energy to help combat an electricity shortage and cut down on buying overpriced energy products from overseas.

The $4 billion project is aimed at a massive scaling up of solar power capacity of the country. To reduce import dependence and become greener, India is aiming to raise its solar-generating capacity to 20 gigawatts (GW) a year by 2022, equivalent to about 5% of its power needs from around 1.2% today.

Six public sector companies--Bharat Heavy Electricals Limited (BHEL) (BSE: 500103) (New Delhi), Solar Energy Corporation of India Limited (SECI) (New Delhi), Power Grid Corporation of India Limited (PGCIL) (BSE: 532898 ) (Gurgaon, Haryana), SJVN Limited (BSE: 533206) (Shimla, Himachal Pradesh), Sambhar Salts Limited, a subsidiary of Hindustan Salts Limited and Rajasthan Electronics and Instruments Limited (REIL) (Jaipur), launched a joint venture company, Sambhar Ultra Solar Power Plant Limited for the implementation of the project.

The first 1,000-megawatt (MW) phase of the project would be developed by these state-run companies, while the remaining 3000 MW would be executed in multiple phases by public-private partnerships (PPP).

The project was planned to be located on the edge of the Sambhar Lake, as the vast shore was mostly unused and receives abundant sunlight. Sources close to the development said there are political reasons for the state's opposition, as the project is one of the milestones of the previous United Progressive Alliance-II government, and the current government in the state is less interested in going ahead with it. Instead, the chief minister is looking at devising a separate solar power program for the state, which has one of highest potential solar power generation in the country.

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