Punjab to lease vacant panchayat land for solar power.

Solar power players willing to invest in Punjab are likely to get shot in the arm with the state government paving the way for leasing out vacant panchayat land to them. Players who had signed power purchase agreement with the state power utility earlier this year have not acquired land citing exorbitant land prices as the stumbling block for setting up power plants. Officials said the current notification would assist the developers in speedy implementation of project, as their major concern has been addressed.

In July last year, Punjab allocated solar power projects to 26 developers for 250 MW after a competitive bidding process. Further, these 26 developers signed power purchase agreement with the state power utility.

According to sources, only 50 per cent of the developers could arrange land either by acquisition or by entering into pacts with farmers for leasing.

Sources in the state government told Business Standard the state's rural department has issued a notification so that the vacant panchayat land can be given to these players on lease hold basis. He added that with new notification in place, many of the potential solar power players will heave sigh of relief.

BS