Solar power projects in Telangana jack up land prices

If the land is near a sub-station, the price skyrockets, according to power officials

Update: 2015-07-06 01:44 GMT
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HyderabadThe Telangana government’s plan to generate 2,000 MW of solar power has resulted in the prices of non-agricultural land rising, particularly in Nalgonda and Mahbubnagar districts.
 
Solar projects require huge parcels of land, typically 5 acres to generate 1 MW, pushing up demand for land. According to sources in the Southern Discom, private parties have been inquiring about the availability and value of lands in almost eight districts where they intend to set up solar power farms, prompting landowners to increase prices.
 
If the land is near a sub-station, the price skyrockets, according to power officials. The discom has laid down a condition that the solar power farm should be in the vicinity of the sub-stations so that grid connectivity is easy.
 
As per authoritative sources, in Nalgonda district, land once used as dumpyards is now being sold for Rs 5 lakh to Rs 7 lakh per acre. The prices are more or less same in Warangal and Nizamabad as well.
 
In Ranga Reddy, where availability of land is an issue, the going price is over Rs 12 lakh per acre even in remote areas of Vikarabad. Though the government wanted to generate only 2,000 MW, it has received applications for 6,500 MW. The deadline for submission of bids was extended for the fourth time to 5 pm on July 10.

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