Renewable energy developers in Tamil Nadu say investment plans are being disrupted after the state power utility paused accepting applications for solar and wind projects for the past two months.
Approvals for such projects are routed through the Tamil Nadu Generation and Distribution Corporation’s green energy arm. Investors allege that under the previous DMK government, approvals were linked to party-fund collections of Rs 25 lakh per MW, and that such collections have stopped after the change in government.
However, investors say the process has not resumed because paper applications have also been halted, while the promised online application system has not been launched. With applications not being received, they fear the scrutiny and approval process will be pushed back further.
As a result, several developers who intended to invest in Tamil Nadu are preparing to shift their projects to other states, including Gujarat, according to industry sources.
A power board official said that “load flow study” reviews are currently being redone for projects that had already received approvals, and that the online application facility will be started soon.
