Public sector undertakings are increasingly forming joint ventures with state governments to navigate persistent land acquisition challenges in large solar power projects. States take equity stakes in return for facilitating land availability for development. NTPC Green Energy Ltd told a parliamentary committee that this model helps move projects forward.
Land acquisition remains a major hurdle in developing solar power projects in India, as it is a state subject competing with food security and conservation needs. Submissions to the parliamentary standing committee on energy indicate that utility-scale solar installations require 4-7 acres per megawatt, with 1.4-2 million hectares needed to tap the country's full potential.
A Comptroller and Auditor General report identified land unavailability or delays as the primary reason for failing to establish required solar capacity. The Ministry of New and Renewable Energy informed the committee that suitable land for solar projects often overlaps with agriculturally productive or ecologically sensitive areas, compounded by fragmented ownership and legal issues around compensation and levies.
To address this, at least three public sector undertakings—NTPC Green Energy Ltd (NGEL), National Hydroelectric Power Corporation (NHPC), and Satluj Jal Vidyut Nigam (SJVN)—have initiated state-specific joint ventures. NGEL stated, “In the model we have come up with, we have taken steps to move forward by forming a joint venture with the state government.” These ventures are in states like Rajasthan, Andhra Pradesh, Madhya Pradesh, Maharashtra, and Chhattisgarh, where states hold 26 to 49 percent equity and provide land.
A senior official noted, “We bring the project expertise and the investment, while the state provides the land. Since land is a state subject, working together allows us to monetise the land which was lying unmonetised for years.” SJVN highlighted that securing large contiguous parcels near grid connectivity causes delays, with Inter-State Transmission System access often postponed beyond 2027.
The ministry described identifying government land by states as the simplest solution and urged them to pinpoint such tracts or suitable private land. The committee recommended a single-window clearance mechanism uniting central and state stakeholders for timely resolution of land issues.
