The government of Punjab is looking forward to leasing out vacant panchayat land for the development of solar power projects in the state.

Earlier this year, the state power utility, Punjab State Power Corporation, had inked power purchase agreements with the developers. These developers have not yet acquired land, citing high land prices as the stumbling block for setting up power plants.

The state government has issued a notification to the state’s rural department so that the vacant panchayat land can be allotted to these developers on lease hold basis.

In July 2013, the state government allocated solar power plants to 26 developers for 250 MW, after a competitive bidding process. Pursuant to these, 26 developers inked power purchase agreements with Punjab State Power Corporation.

The solar power projects were awarded in two categories of 1-4 MW and 5-30 MW. In the 1-4 MW category, 18 companies were awarded power units to the tune of 50 MW, while in the 5-30 MW category, 11 companies have been awarded projects for 200 MW solar power. These producers are likely to invest around Rs 2,200 - 2,500 crore in the state and will require another 13-15 months to commission the projects.