VIJAYAWADA: Following the approval from the Council of Ministers, the Energy department has made amendments to the 10,000 MW solar power project’s tariff model from the earlier approved 15 years to 25 years.
The government has also brought down the lease rate on government lands to a nominal value of Rs 5 per acre per annum from the earlier approved Rs 31,000 per acre per annum.
According to the order (MS 19) issued by ex-officio principal secretary G Sai Prasad on Friday, modifications were made to the earlier approved policy in accordance with the guidelines of the Solar Energy Corporation of India Limited (SECI).
Though the government earns land lease on government land rented to power developers, the exchequer has to pay the same through the tariff quoted by the developers as they factor land lease rentals while quoting the tariffs.
"Keeping this in view, it was proposed that government reduce the lease for lands to Rs 5 per acre per annum, which will result in lower tariffs and less cash outflows to the government. The government would not suffer any loss on account of charging nominal lease rent," officials maintained.