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Solar Purchase Obligation, a hindrance says some HT consumers

According to reports, the solar energy policy unveiled by the State Government has been evoking mixed response among the High Tension (HT) consumers in the district.

Though the initiative to promote tapping of solar energy was widely hailed, the HT consumers are of the opinion that the 6 per cent Solar Purchase Obligation (SPO) (ie starting with 3 per cent till December 2013 and 6 per cent thereafter) mandated in the policy would result in substantial increase in expenditure for them.

“Considering the financial and operational crisis presently encountered by entrepreneurs in sectors like textiles and engineering, it is been requested that the authorities concerned could defer the mandatory obligation of 6 per cent for HT consumers for some more time,” M. Ramaswamy, managing director of Alpine Spinning Mills which is HT consumer.

S. Dhananjayan, an industrial consultant to HT consuming units, is of the view that if at all the 6 per cent SPO need to mandated, the HT consumers going for the solar power generation should be extended incentives/sops to subsidize the capital expenditure for installation of solar power projects at a large scale.

“The prevailing cost of setting up solar power plants of 1 MW capacity comes to around Rs. 9 crore which is a huge sum to bear for people operating spinning mills who are presently starving for funds to meet working capital needs,” he said.

The industrialists are of the view that some of the points mentioned in the policy like exemption from demand cut to the extent of 100 per cent of the installed capacity assigned for captive use purpose and tax concessions were excellent.

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