Centre, KFW to part fund AP green energy corridor.

KFW, the German lending agency, and the Centre have agreed to fund the green energy corridor planned by Andhra Pradesh with the objective of transforming the State into a renewable energy hub.

According to the State Energy Conservation Mission, KFW is likely to sanction Rs. 500 crore and the Central Power Ministry Rs. 515 crore to develop the Rs. 3,500 crore green energy corridor.

According to Ajay Jain, Secretary, Energy, Industries and Infrastructure, efforts are now under way to develop a green corridor to support the upcoming solar and wind projects with an initial cost of about Rs. 1289 crore. Efforts are under way to secure necessary funding with the support of the Centre and International Financial institutions.

State Chief Minister N Chandrababu Naidu has thanked the Centre for sanctioning Rs. 515 crore grant for setting up the green energy corridor. The AP Transco and Discoms would initiate steps soon to mobilise the balance investments from Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

Having set a target of 5000 MW of solar photovoltaic and 4000 MW in the wind energy sector by 2019, the State is planning to constitute a taskforce for expediting the renewable energy projects.

Ajay Jain further said the State is on course to developing world’s biggest solar park with a capacity of 2,500 MW with the support of the Centre, National Thermal Power Corporation (NTPC), NVVL, Ministry of New and Renewable Energy.

The State plans to extend all facilities and fiscal incentives provided by Central Government/National Solar Mission to the manufacturers in solar parks. It is proposed to set up Special Purpose Vehicles for development of infrastructure and management of solar park.

K Vijayanand, Chairman and Managing Director of AP Transco, said the State has secured environmental clearance for Krishnapatnam and Vijayawada Thermal Power Stations (VTPS). This paves the way for the State to enhancing the generating capacity.

HBL