Rajasthan’s Budget Proposes 11 GW of Renewable Projects in FY 2023-24
State to cut stamp duty and land tax duty for renewable developers
Rajasthan has set a target to install 11 GW of renewable-based generation projects in the next financial year (FY 2023-24), Chief Minister Ashok Gehlot announced while presenting the Budget for 2023.
Rajasthan would provide concession in stamp duty and land tax duty to renewable energy developers planning to set up projects in the state.
Gehlot said that this would result in a reduction in electricity duty on solar energy from ₹0.60 (~$0.007)/kWh to ₹0.40 (~$0.005)/kWh, which is expected to benefit residential net metering consumers.
Further, banking, wheeling and transmission charges would be waived for captive solar power projects.
To avail of the benefit, the total capacity of energy generated from these projects should be used by the enterprise.
Also, investors can establish captive solar power projects of capacity above the contracted demand to fulfill their power requirements.
Power-Transmission and Distribution
The state has proposed to set up the Bhadla-Bikaner bulk power corridor to evacuate renewable power from the region.
An Integrated Real-Time Data and Command Center based on advanced data analytics will be established to have a proper account of the energy generation and energy demand. This will cost around ₹750 million (~$9.09 million).
The government has announced that consumers using less than 100 kWh per month will be provided free electricity under the Chief Minister’s Free Electricity program.
The state government has also proposed to provide electricity at a subsidized rate of ₹0.90 (~$0.011)/kWh to farmers. Along with this, starting next financial year, nearly 1.1 million farmers utilizing up to 2,000 units of electricity per month will be provided free electricity.
The state has announced plans to start an Integrated Resource Recovery Park, which will help recycle waste materials.
Recently, to project Rajasthan as an attractive investment destination, the Rajasthan government signed memorandums of understanding for nearly ₹1.23 trillion (~$15.77 billion) of renewable energy projects under the Invest Rajasthan program. The agreements were signed for 14 projects proposed by both public sector and private companies in the renewable energy sector.
Back in 2019, Rajasthan had released its Solar Energy Policy intending to achieve a 30 GW of solar power target by FY 2024-25. Of this, utility or grid-scale solar parks would account for 24 GW, distributed generation 4 GW, rooftop solar, and solar pumps accounting for 1 GW each.