The Ministry of New and Renewable Energy (MNRE) recently cancelled the proposal to setup solar part at Kadaladi in Ramanathapuram district which is seen as the major set back for Tangedco and Tamil Nadu Government.
But one big question that popped up in everyone’s mind was why did the ministry decided to cancel this solar project? The Indian solar Industry is already growing through lot of turbulences and this discussion will only add up more to it.
This is the second setback for Tangedco , last year in December -power minister RK Singh wrote a letter to CM Edappadi K Palaniswami stating that it will be difficult for PFC and REC to provide loans based on the present financial situation of Tangedco.
Reason for cancellation?
As per the sources the main reason that propelled the Union ministry to cancel the proposal was the slow response and unpunctuality towards the implementation of solar projects.
In 2016 former CM J Jayalalithaa announced setting up a 4,000MW thermal power plant at the same site, however it got tangled into land clearance issues. Later in 2017 the then government announced to set up the 500 MW solar park at Kadaladi, it also announced that it would be the first ever to be set up by any discom. But even after three years the project did not move even a inch closer to the development.
A senior Tangedco official speaking to TOI said “We were not aware of the MNRE’s review meeting. Our information is that the Union government cancelled the project as no one representing Tangedco attended the review meeting. The decision came as a surprise to us,” he added “Solar Energy Corporation of India (SECI) had offered to invest and develop the solar project on land to be provided by Tangedco on build-own-operate (BOO) basis. Tangedco would have got 100% of power generated by the park.”
Now what?
Tangedco is now planning to re-approach the ministry to reconsider its decision to cancel the project. Tangedco says it has already done to identify the land, measuring about 1,500 acres.