Wind energy projects could soon become Non-Performing Assets (NPAs) since 550 MW of projects are now abandoned. The projects worth Rs 4,000 crore are ready to produce electricity but are yet to get commissioning approval from concerned authorities.
The Maharashtra State Electricity Distribution Co ltd (MSEDCL), which is the second largest electricity distribution utility in the world after china, has refused to sign power purchase agreements (PPAs) or issue commissioning certificates to the project developers, the Economic Times reports.
Some of the companies affected due to the delay in getting the required approval are: Tata Power Ltd, ITC, Jindal Steel subsidiary among others.
"Wind energy projects, which do not start generating power within two years of taking loans can be declared non-performing by the RBI. All these developers face the threat, even if they have been paying interest on their loans," Sunil Jain, President, Wind Independent Power Producers Association, was quoted as saying by the publication.
In 2014-15, 365 MW of wind projects were reportedly ready. The following year, 192.05 MW projects were completed.
Defending its position the MSEDCL chairman, Sanjeev Kumar said it was working in accordance with the state's new renewable energy policy, ET added.
Maharashtra unveiled a new renewable energy policy in July 2015. It said: "A total of 5,000 MW capacity of wind energy projects shall be commissioned. Out of that, an initial 1,500 MW will be used to fulfill renewable purchase obligations of distribution companies, and the rest, 3500 MW of capacity of wind projects, can be utilised as open access for interstate and intrastate renewable energy certificates. [sic]"
However, Sunil Jain said not a single PPA approval had been granted to any energy producer ever since the new policy was released.
"We have complained to the Maharashtra chief minister, the Prime Minister's Office, the finance ministry and the Ministry of New and Renewable Energy," said Jain. "Every investor and developer in wind energy in Maharashtra is suffering," Jain told ET.
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]