Union Gov to go slow on energy SEZs

New Delhi: Union minister of state for new and renewable energy Vilas Muttemwar has decided to soft-pedal proposals for setting up an exclusive special economic zone (SEZ) for units manufacturing equipment for renewable energy.

The decision was taken in the backdrop of growing protests from farmers over land acquisition. Many states, including Tamil Nadu, Karnataka and Andhra Pradesh, have shown interest in the SEZ, but Mr Muttemwar is yet to decide on the central location.

Mr Muttemwar said, 'We are going extremely slow as we do not want farmers’ agitation. And a repeat of Singur and Nandigram.' However, the ministry is keen to see the setting up of an SEZ for renewable energy equipment.

Mr Muttemwar said his ministry is taking steps to exceed the target of generating 14,000 MW renewable energy by 2012. At present, the country has an installed renewable energy capacity of 10,500 MW.

The government, he said, is inviting investment from China, both for manufacturing equipment and for power generation from the new sources. Chinese players too might enter the Indian market in a big way, he said.

There is also a lot of interest from the German firms, which are in talks with Indian companies for joint ventures, he said.

The government is giving priority to the new energy areas, including solar and wind, because the 78,500 MW target of the 11th Plan cannot be achieved through the conventional power sector alone, the minister said.

He said that India has been able to tap only 10 per cent of the 70,000 MW potential in the wind energy.