CHENNAI: A solar project in Villupuram district, which if implemented could be a game-changer for many hamlets across the State, has been stuck for the past six years due to GST and land acquisition issues.
Aimed as a starting point towards making villages self-sustainable in energy production, the Solar Village Project was proposed by the State government led by former Chief Minister J Jayalalithaa in 2015. The government had planned to build a 170 Kilo Watt (KW) solar plant at Irumbai village in Vanoor taluk of Villupuram district.
More than 200 houses in the village were to get electricity from the solar plant. To start things off, the Tamil Nadu Energy Development Agency (TEDA) even installed energy-efficient appliances like LED bulbs and power-saving fans in a few houses in the village to reduce the power demand by half. However, the project never really took off.
Two issues - GST and land acquisition process - have threatened to derail the project. A senior TEDA official told The New Indian Express, "This is a pilot project. To construct a solar plant, we have categorised 4,000 sq feet of land owned by the Animal Husbandry Department (AHD) in the village. But, there were a few issues between the two departments in acquiring the land."
"Now, AHD has come forward to provide the land on lease and we have also signed an agreement with them. But, the process of rate fixation is yet to be finished. For this, documents have been sent to the land reforms committee to fix the rate. However, we have received go-ahead to start the project in the village from our department," the official added.
The official also explained that GST was 5 per cent for solar components when the project was planned. But now, it is 18 per cent. "Hence, no company tends to participate in the tender process. In a few States including Kerala, the State governments are bearing the extra 13 per cent GST. The TEDA also has sent a proposal to the State government to bear the extra GST," he said.
Adding that the present government led by DMK has promised to implement the Solar Village Project at a cost of Rs 2 crore, the official said: "Now, a private company has been selected for the solar project. We hope the government admits to compensate the 13 per cent GST."
From consumers to producers
Even after the solar plant is installed, the Irumbai village is set to be connected to the TANGEDCO grid and excess power generated from the solar plant will be supplied to the grid as well. Based on the fund allotments, TEDA will opt for more villages in the State to introduce the solar plant in the future