logo
State energy dept plans to scrap annuity model in solar projects

State energy dept plans to scrap annuity model in solar projects

Time of India05-06-2025
1
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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Chirag faces heat from NDA over crime remarks
Chirag faces heat from NDA over crime remarks

Time of India

timean hour ago

  • Time of India

Chirag faces heat from NDA over crime remarks

Patna: A day after criticising the state govt and police over law and order issues, LJP (Ram Vilas) chief and Union minister Chirag Paswan continued to draw sharp responses from alliance partners Hindustani Awam Morcha (Secular) and JD(U) on Sunday. Following Union minister Jitan Ram Manjhi's remark branding Chirag as a politically inexperienced figure, his son and HAM(S) president Santosh Suman launched a scathing attack of his own. However, BJP leader and PHED Minister Neeraj Singh Babloo maintained that while internal criticism is welcome, Chirag remains very much part of the NDA fold. "It has become fashionable nowadays to gain media attention by issuing statements on crime," Suman said. "Where does morality go when criminals are welcomed into parties with pomp and show?" he asked. JD(U) MLA from Parbatta, Sanjeev Kumar, also hit out at Chirag, questioning his political influence in the state. "He doesn't have a single MLA in Bihar. There is no question of him supporting the Nitish Kumar govt," Sanjeev said. "If he had contested the Lok Sabha elections alone, he would have known his real standing. His party won seats only because of votes cast in Prime Minister Narendra Modi's name," Kumar added. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mini House for 60 sqm for Seniors with Toilet and Bath (Price May Surprise You) Pre Fabricated Homes | Search Ads Search Now Undo Despite the criticism, Chirag's LJP(RV) had a clean sweep in the Lok Sabha elections, winning all five seats allotted to the party. Meanwhile, Purnia MP Rajesh Ranjan alias Pappu Yadav commented on Chirag's growing political alignment with Jan Suraaj founder Prashant Kishor. "Prashant should formally declare Chirag as his CM candidate. If Chirag wins even a few seats in the assembly elections, he will pose problems for JD(U)," he said. Reacting to the HAM(S) leaders' criticism, Jamui MP Arun Bharti, Chirag's brother-in-law, said, "Manjhi may consider himself a prominent Dalit leader, but the people will decide that in the upcoming elections."

Manjhi-Chirag tussle boosts BJP in Magadh
Manjhi-Chirag tussle boosts BJP in Magadh

Time of India

time5 hours ago

  • Time of India

Manjhi-Chirag tussle boosts BJP in Magadh

1 2 3 4 Gaya: The ongoing tussle between Union ministers Jitan Ram Manjhi and Chirag Paswan, ostensibly for Dalit leadership, has inadvertently strengthened the BJP's bargaining position in the politically crucial Magadh division of Bihar. The division comprises five districts – Gaya, Aurangabad, Nawada, Jehanabad and Arwal. These districts together account for 26 assembly constituencies. Ten of these are located in Gaya district alone. On Saturday, Union minister and Lok Janshakti Party (Ram Vilas) leader Chirag Paswan held a well-attended public rally at Gandhi Maidan in Gaya. The event was significant for two reasons. Firstly, Gaya is the home district of Jitan Ram Manjhi. Secondly, the choice of Gandhi Maidan, a venue typically reserved for prominent national leaders, suggests Chirag is making an assertive bid to position himself as a taller public figure, possibly overshadowing his rival Manjhi. The symbolism of the venue did not go unnoticed by political observers. Political experts point out that since the era of the late Jagjivan Ram, no Dalit leader has enjoyed a pan-Bihar appeal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Pune: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo Jagjivan Ram was widely regarded as a national leader of Dalits, then referred to as Harijans. In contrast, the late Bhola Paswan Shastri and Ram Vilas Paswan did not attain comparable stature. Today, Chirag and Manjhi are seen as leaders of their respective sub-castes. According to the 2023 caste census, Paswans constitute 5.3% of Bihar's population while Mushars, Manjhi's community, make up 3.9%. Unlike Mushars, Paswans are generally viewed as more dominant and economically better placed. Gaya remains central to Manjhi's political relevance. In addition to representing the Gaya Lok Sabha seat himself, his daughter-in-law and sister-in-law hold the Imamganj and Barachatti seats respectively in the Bihar assembly. Political analyst and litterateur Ashok Kumar said, "By weakening each other, Manjhi and Paswan strengthen the BJP." For the BJP, performing strongly in the Magadh region is essential if it hopes to realise its ambition of ruling Bihar. In the last Lok Sabha election, the party underperformed in the region, losing the crucial Aurangabad seat to the RJD. Both the NDA and the INDIA bloc won two seats each in the division. Of the NDA's two victories, the BJP secured Nawada while the Gaya (reserved) seat went to alliance partner HAM-S. JD(U) failed to win any seat in Magadh during the 2024 parliamentary polls. So far, the BJP has made no serious attempt to mediate between the LJP and HAM-S. However, Chirag faces a strategic dilemma, having opened multiple fronts simultaneously. Apart from his rift with HAM-S, tensions remain high between the LJP and JD(U) as well. How the BJP manages its two feuding allies remains to be seen.

Govt approves Rs 6,478 crore road devpt programme
Govt approves Rs 6,478 crore road devpt programme

Hans India

time3 days 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.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store