State energy dept plans to scrap annuity model in solar projects
2
Jaipur: State govt is planning to scrap 4,000 MW solar projects planned under Hybrid Annuity Model (HAM) for solarising agriculture connections. In a recent meeting, energy minister Heeralal Nagar sought opinions about the efficacy of this model in the solar sector after a few stakeholders raised concerns.
Officials present in the meeting said many questioned the logic of introducing HAM in the power sector where there is an assured income. HAM is widely used in the road sector where the toll revenue is uncertain during the initial years. They said risks and returns are usually managed through tariff-based competitive bidding, not annuities. Also, cash flow in power projects is predictable, especially in renewable energy.
Under the HAM model, the govt provides investors 30% of the cost upfront and the rest in seven installments over seven years. After seven years, the projects are transferred to the govt. However, most of the projects under the PM Kusum scheme, intended for solarising the agriculture sector, are set up by the private sector, and the power is supplied at a pre-determined rate of around Rs 3. In these projects, the govt neither invests nor owns the projects but gets power as per the power purchase agreement with them.
"Power project developers are very keen on investing under the HAM model, and the track record of the govt in payment is not very good," said an industry representative. According to sources, while the energy department has initiated the process to cancel the 4,000 MW project, it will go ahead with the 1,000 MW rooftop projects for govt buildings tendered under HAM.
Another industry expert said that when the officials change, the payment to developers under the HAM can become difficult. "There is scope for interference and misinterpretation of certain works involved in the projects, and invariably the payments become the tool to harass the developers," he said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
a day ago
- Hans India
Govt approves Rs 6,478 crore road devpt programme
Hyderabad: In a significant move aimed at strengthening rural connectivity and regional infrastructure, the Telangana government has approved a Rs 6,478 crore road development programme, to be executed under the Hybrid Annuity Model (HAM). Announcing the initiative, Roads and Buildings Minister Komatireddy Venkat Reddy stated that the project marks a major step in the state's push for balanced development. 'Good roads are more than just infrastructure — they are the foundation for economic growth and regional equality. This initiative will connect every village to its mandal and every mandal to its district headquarters with high-quality roads,' the Minister emphasised. As part of Phase-1, works will commence across 17 packages, encompassing 373 roads with a total length of 5,190 km. Tenders have already been floated, and construction is anticipated to begin shortly. The comprehensive plan envisions blacktop roads linking all villages to mandal centres, and double-lane roads connecting mandals to district headquarters. This is expected to drastically improve transportation, access to essential services, and local mobility across the state. Minister Venkat Reddy expressed gratitude to Chief Minister Revanth Reddy for his swift approval of the plan, reiterating that infrastructure development remains a core priority for the government. He also acknowledged and appreciated the diligent efforts of senior officials from the Roads and Buildings Department and Special Chief Secretary Vikas Raj, who supervised multiple field visits and were instrumental in preparing a detailed project report. 'This government believes in growth that reaches the grassroots. With HAM, we are not just laying roads — we're laying the path to Telangana's future,' the Minister added. The government has positioned this extensive road programme as part of a broader commitment to deliver both welfare and development, maintaining a strong focus on long-term transformation rather than merely short-term fixes.
Time of India
2 days ago
- Time of India
CM approves revised policy for land compensation to farmers
1 2 Jaipur: Chief minister Bhajan Lal Sharma Wednesday approved the revised policy for compensating farmers for land affected by the Right of Way (ROW) in the construction of new transmission lines of 400 kV or more capacity in Rajasthan. With the CM's decision towards farmers, additional compensation will now be provided for the construction of transmission lines of 400kV and above. He accepted the long-standing demand of farmers, ensuring that in the future, farmers will receive appropriate compensation for land used in the Right of Way and tower areas of transmission lines. A partial amendment was made to the compensation policy for land affected by the ROW for the construction of new transmission lines of 132kV or more capacity, effective from Nov 8, 2024, in Rajasthan, specifically for transmission lines of 400kV and above. Energy minister Heeralal Nagar said that the revised policy will greatly benefit farmers, allowing for proper compensation for losses incurred during the construction of transmission lines of 400kV and above on their fields. This will expedite the construction of high-capacity transmission lines in the state, benefiting common consumers with high-quality electricity. ROW is a strip of land where the construction, installation, operation, and maintenance of transmission lines take place. ROW is the centre of the transmission line. It removes all trees, structures, and constructions that obstruct power lines. According to this revised policy, an additional 200% compensation will now be provided on top of the previously payable 200% of the land value according to DLC rates for the tower base area of these lines. The tower base area will be the area enclosed by the four legs of the tower at ground level, with an additional one-metre extension on each side. Additionally, for ROW corridor, 30% of the land value will be payable in rural areas, 45% in municipal and other urban planning areas, and 60% in municipal corporations and metropolitan areas. This revised ROW compensation policy will apply to all implementing agencies (transmission licensees), Power Grid Corporation, and all private companies involved in the construction of transmission lines of 400 kV and above capacity.
Time of India
2 days ago
- Time of India
Govt clears Rs 6,478 cr road devp plan to boost rural connectivity
Hyderabad: Ahead of the panchayat elections, the Congress govt approved a ₹6,478 crore road development programme under the hybrid annuity model (HAM) to strengthen rural connectivity and regional infrastructure. Roads and buildings minister Komatireddy Venkat Reddy announced this on Wednesday. He said the project marks a major step in the state's push for balanced development. "Good roads are more than just infrastructure — they are the foundation for economic growth and regional equality. This initiative will connect every village to its mandal and every mandal to its district headquarters with high quality roads," he said. As part of phase I, works will be taken up across 17 packages, covering 373 roads with a total length of 5,190 km. Tenders have been called, and construction is set to begin shortly. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad "With HAM, we are not just laying roads — we are laying the path to Telangana's future," the minister said.
