Why Andhra Pradesh has become the leading Indian solar state in India with massive capacity expansion
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The southern state of Andhra Pradesh has become the leading solar state, with massive capacity expansion being planned by the state. The new government being led by the reformist Chandra Babu Naidu has made solar energy the center of its power policy, similar to what is being done by PM Modi at the central level. Though many states have set ambitious targets (for e.g Rajasthan has 25000 MW), AP has differentiated itself by the execution on the ground. Its solar power policy is one of the best ones in the country, allowing open access and no charges. It also makes regulation and approvals extremely easy, giving time bound approvals and reducing red tape. Using its close relationship with the central government, the state has managed to bag three solar parks of 4000 MW capacity (Anantapur (1,500 MW), Kurnool (1,000 MW) and Kadapa (1,500 MW)), out of which 1000 MW has already been bid out at a very low price of INR 4.63/unit. It has also managed to get transmission and distribution investment, which will allow the power to be evacuated easily from the solar power plants.
The government has also invited a number of foreign companies such as Softbank and Trina Solar to invest in the state. Domestic investors such as Axis Group and Suzlon have also signed MOU to set up both manufacturing plants and power plants in the state. While the government has set a target of 5000 MW in the next 5 years, I think it will exceed the target given the current run rate and encouragement.
Besides, power plants, Trina Solar has said it would invest heavily to set up a large solar cell and module manufacturing plant in the state. Softbank may also look to set up a plant in its JV with Airtel and Foxconn. AP is all set to become the leading solar state, taking over the baton from Rajasthan and Gujarat. The rapid execution and commitment from the top leadership of the government has been the key factor leading to its top position.
1 Comment
Naidu is famous for being a no-nonsense operator whose style very much resembles that of Modi. It is indeed heartening to note the fact that AP has taken initiative to take care of the infrastructure needs right in the beginning itself.
We do need such far thinking persons.