Karnataka exempts renewable energy projects from obtaining permission to use agricultural land

Bengaluru: Karnataka has rolled out a new system exempting renewable energy projects from obtaining prior permission to start operations on agricultural land, a move that Revenue Minister Krishna Byre Gowda said will cut corruption and make doing business easier.

Renewable energy projects -- solar, wind, hybrid, energy storage, biomass and waste-to-energy -- need not apply for conversion of agricultural land to allow non-agricultural use.

At present, any use of agricultural land for non-agricultural purposes needs a conversion order by the deputy commissioner.

“Conversion used to take six months. First, an agreement with the farmer and then conversion...it wasn't perfectly designed. Middlemen made merry. If the government got Rs 10, the actual cost would be Rs 100. There was corruption and we don’t know if that money went to an agent or officials. Ultimately, the government got a bad name,” Gowda said.

“We don’t want such maladministration. That's why this initiative has been launched. We believe this will lead to ease of doing business,” Gowda said.

Gowda pointed out that India has pledged to establish 500 gigawatt (GW) by 2030 and decrease reliance on fossil fuels. “There’s a gap of 200 GW. We’ve not been able to keep up the pledge, so we need faster growth.”

To establish 200 GW of renewable energy, an estimated 8 lakh acres of land will be required, Gowda said. “In Karnataka, over the next four years, about one lakh acres will be used for renewable energy,” he said, adding that the state will have to produce 40-50 GW of renewable energy by 2030.

The auto-conversion feature for renewable energy projects is “a leap of faith”, Gowda said. “This is being done on affidavit-basis. We're hoping there won't be any misuse. We've also kept strong penal provisions. We're moving to a trust-based system,” he said.

Gowda hopes that Karnataka will get more investments with this land reform. “Karnataka has the best system for renewable energy investments as far as land is concerned,” he said.

The auto-conversion feature was piloted in the Chikballapur district before Gowda launched it for statewide use Friday.