The government will set up a Renewable Energy Promotion and Facilitation Board to help minimise risks for developers in the sector that has seen a waning of investment interest mainly because of adverse policies of state governments.
The board will liaise between developers and various state governments and authorities to ensure smooth implementation of renewable energy projects in the country and also coordinate with various financial institutions to enhance access to easy finance, the new and renewable energy ministry (MNRE) said in an order issued on Tuesday.
The proposed board will “deal with challenges and issues being faced by renewable energy sector with the aim and objective to remove obstacles and difficulties which investors face in bringing investments in the sector”, it said.
ET has reviewed a copy of the MNRE order.
The board will meet once every 15 days. However, developers and investors can meet the chairperson on every Wednesday between 3 pm and 5 pm by obtaining prior approval, it said.
The board will be chaired by joint secretary (solar) and have two other joint secretaries of MNRE as members, people privy to the development told ET.
It will also have representation from senior officials from the ministries of finance and power, and from Central Electricity Authority, Central Electricity Regulatory Commission, NTPC, REC, Power Finance Corp, Indian Renewable Energy Development Agency (Ireda) and Solar Energy Corp of India.
The renewable energy sector has been facing some tough challenges due to policy uncertainty and difficulties in land procurement and transmission connectivity.
Payment delays by state distribution companies, increasing curtailment of projects and some state governments’ move to renegotiate power purchase agreements (PPAs) have added to the problems, industry insiders said.