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Parliamentary panel recommends measures to accelerate solar project development in India

Parliamentary panel recommends measures to accelerate solar project development in India

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NEW DELHI: Noting land acquisition as one of the major issues affecting the timely development of utility-scale solar projects, a parliamentary panel on energy recommended the creation of a ‘single-window clearance mechanism’ to bring all stakeholders from the Centre and states together for easy identification of bottlenecks and their time-bound resolution.The Parliamentary Standing Committee on Energy also called for close coordination with states and project developers to identify and resolve issues promptly, in order to accelerate the development of solar-related schemes. It recommended that the Ministry of New and Renewable Energy design state-specific awareness campaigns to popularise solar projects through close engagement with states and power distribution companies.These recommendations were part of a report on Performance Evaluation of Solar Power Projects in the Country, tabled in Parliament on Monday. The panel noted slow progress under several programmes, including the Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSG: MBY), PM-KUSUM, and the scheme for developing solar parks.The committee also pointed out a regional imbalance in solar power development. It recommended that central agencies hand-hold states and Union territories with low installed solar capacity relative to their potential. “This should be done through supportive policies, timely release of central financial assistance, regular project monitoring, and constant engagement for early detection and resolution of issues,” the panel said.According to the report, four renewable energy implementing agencies — SECI, NHPC, SJVN, and NTPC — were yet to sign power purchase agreements for around 44 GW as of June 30, 2025. Similarly, only 16 lakh rooftop solar installations were completed under the PMSG-MBY till June, against the target of one crore households by 2026-27, leaving less than two years to finish the remaining 84%. The panel identified lack of awareness as the main reason for slow adoption. Although the Ministry conducted outreach across print, radio, television, and social media, the committee observed that widespread progress would be difficult unless states and their discoms came fully onboard.“The committee therefore desires that the Ministry engage closely with states/discoms to design awareness campaigns suited to each state’s distinctive features. This may build trust among states and consumers, paving the way for capital investment and adequate space for solar panel installation at the anticipated scale,” the report said.The parliamentary panel also flagged extensive delays in solarisation of the agriculture sector across its three components, despite March 2026 as deadline for the scheme to expire. “Till then, the committee expects the Ministry to closely monitor implementation in states and make timely interventions so that projects that can be completed within the timeline are not unnecessarily delayed,” it said.On solar parks, the panel pointed out that only about 12.2 GW were commissioned till March 2025, although 40 GW were sanctioned through 55 parks in 13 states. This meant 27.8 GW — or 70% of the capacity — still needed to be developed in 2025-26 alone. “The committee would like to highlight the need to accelerate completion of the sanctioned capacity,” it said.For effective transmission of non-fossil power, the panel said the Ministry should work with each state individually to resolve right-of-way compensation issues at market rates and encourage them to adopt its recent guidelines. It suggested creating a dedicated portal for all transmission-related matters and onboarding all authorities involved in forest and wildlife clearances.

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