As per the proposals, Eden Renewables will set up a 300 MW solar energy project with an investment of Rs 1,572 crore in the 3716 bighas. Likewise, Adani Group has proposed a 50 MW project for wind energy having an investment of Rs 500 crore
January 03, 2020. By News Bureau
Eden Renewables and Adani group have recommended to capitalize Rs 2,072 crore in the renewable power sector and both the projects have been given 100% exemption from stamp duty and conversion charges under the new RIPS.
As per the proposals, Eden Renewables will set up 300 MW solar energy project with an investment of Rs 1,572 crore in the 3716 bigha. Likewise, Adani Group has proposed a 50 MW project for wind energy having investment of Rs 500 crore.
Industries minister Parsadi Lal Meena said the proposals indicate the lucrativeness of Rajasthan’s new investment policy which was announced by chief minister Ashok Gehlot December 19 along with new policies for solar, wind and hybrid energy. Additional chief secretary, Industries, Subodh Agarwal said that Investment Promotion Scheme (RIPS) of the state offers 100 % exemption from stamp duty and conversion charges. Moreover, it also offers 100% exemption for seven years from payment of electricity duty, mandi fee, land tax and subsidy of 75% SGST. The incentives are more than incentives offered by any other state, added Agarwal.
These two projects are the first two big projects to have availed the benefits of the new policies. Now that the policies are in place, the pressure is on the government to deliver on attracting investments which dried up in the past one year. There was no major investment that was mobilized after the Congress government came to power.
While the policies offer competitive incentives, high land prices in the state are likely to create headwinds to any effort to attract companies. Industry feels the land e-auction may ensure transparency but it will not be a comparative advantage for the state. However, industries minister has said land prices will be kept lower in new industrial areas and the state is creating 11of them now.
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