India Green Energy Corridor Phase I Faces Delays Due to Multiple Reasons
India’s ambitious ₹10,141.68-crore Phase-I of the Green Energy Corridor (GEC) project, designed to integrate significant renewable generation capacity into the national grid, is facing delays due to a multitude of reasons. Parliament was informed this Tuesday that while four out of eight states have completed their designated projects, the remaining four are experiencing setbacks. These delays primarily stem from Right of Way (RoW) issues, ongoing court cases—including matters related to the Great Indian Bustard—and challenges in obtaining forest clearances, hindering the timely execution of this crucial green energy infrastructure.
The GEC-I scheme, introduced by the government for the development of Intra-State Transmission Systems (InSTS) across eight states, aims to set up approximately 9,700 circuit kilometers of transmission lines and 22,600 megavolt ampere (MVA) substations. This infrastructure is essential for facilitating the integration of about 24 GW of renewable generation capacity, primarily from solar and wind power projects. States that have successfully completed all their projects under this phase include Rajasthan, Karnataka, Madhya Pradesh, and Tamil Nadu, demonstrating progress in certain regions.
However, the Minister of State for New and Renewable Energy confirmed that the Phase-I of the Green Energy Corridor has been significantly delayed in Andhra Pradesh, Gujarat, Maharashtra, and Himachal Pradesh. These delays are directly attributed to challenges such as difficulties in securing Right of Way for transmission lines, various court cases impacting project sites, and the intricate process of obtaining necessary forest clearances. These hurdles often lead to cost overruns, missed project timelines, and can impact investor confidence in renewable energy projects, highlighting persistent on-ground implementation issues.
The total project cost for GEC-I is ₹10,141.68 crore, with a structured funding mechanism. This includes 40% Central Financial Assistance from the Ministry of New and Renewable Energy (₹4,056.67 crore), a substantial 40% loan from KfW Germany (EUR 500 million), and the remaining 20% equity contribution from State Transmission Utilities (STUs). While Phase I faces hurdles, Phase II of the GEC scheme is already under implementation in Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh, at an estimated cost of ₹12,031.33 crore, indicating continued commitment to the broader green energy transition.
Despite progress in some areas, addressing the persistent challenges in land acquisition, RoW, and environmental clearances is crucial for accelerating India’s green energy transition. States have also been advised to prepare their respective InSTS plans with a 10-year horizon, underscoring a long-term vision for renewable energy evacuation.
