UPSC-Relevant News Items

1. PSUs form JVs with state governments to overcome land hurdles in solar projects

Page: 7

Summary:

• PSUs are increasingly forming Joint Ventures (JVs) with state governments to bypass severe land acquisition bottlenecks hindering large utility-scale solar projects.
• PSUs like NGEL, NHPC, and SJVN are initiating JVs across states like Rajasthan and Maharashtra, where states take equity for facilitating land.
• Land is a state subject, and solar projects require vast tracts, often leading to competition with agricultural land, resulting in long pre-construction delays.

Additional Facts:

• Land is a State Subject (Entry 18, List II, Seventh Schedule), making institutional mechanisms like Joint Ventures essential for Central PSUs to leverage State Governments' land acquisition powers for utility-scale solar projects.
• Ministry of New and Renewable Energy (MNRE) frameworks mandate PSUs to meet national renewable energy targets, driving the adoption of equity-based JV models with states to overcome land bottlenecks quickly.

Linkage with UPSC course:

• GS Mains (GS-3):
• • Infrastructure: Energy (Renewable)
• • Investment Models: Joint Ventures (JVs)
• • Land Reforms/Land Use

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