MNRE's initiative to encourage States to Utilize Wastelands

Government of India has taken various initiatives which includes setting up of Solar Parks on the banks of canals, Ultra Mega Solar Power Projects, wind power projects for which the States are encouraged to use land including wastelands depending on availability and resources. The Ministry of New and Renewable Energy is providing various fiscal incentive such as generation based incentives, accelerated depreciation, concessional excise and customs duties for the promotion of renewable energy sources in the country. Besides providing financial and fiscal incentives, a few other measures to promote renewable energy include: setting up of demonstration projects, preferential tariff for purchase of power generated from renewable sources, intensive resource assessment, development of power evacuation and testing facilities, introduction of Renewable Energy Certification and Renewable Purchase Obligation, etc. Indian Renewable Energy Development Agency, a Central Public Sector Enterprise under this Ministry, also provides soft term loan for promotion of renewable energy projects. 

The cost of land in renewable energy projects such as wind farms and solar farms/ power plants is of the order of 3 to 5 per cent of total project cost. The new Land Acquisition Act may impact the total cost of renewable energy projects. 

The Act stipulates payment of compensation and Rehabilitation and Resettlement package as per First, Second and Third Schedule of the Act. Under the Act, time frame has been prescribed during which various processes are to be completed. A draft National Land Utilisation Policy has been formulated which inter-alia proposes Land Utilization Zones for the purpose of ensuring optimal utilization of land resources.