Hyderabad: Private firms, companies and others planning to be set up operations on government land must pay some percentage of their profits to the state government.
The AP government has taken two major decisions: First, it will not sell government land to any company or industry in the future.
It will instead allot land only on lease basis. Second, it will seek a share from the private companies setting up shop on government lands.
The AP government has already started implementing these decisions in the wind and solar power projects. Sources said that the government is likely to implement them for other firms also.
The state government has allotted 35 acres of government land to ZR Renewable Energy Company on lease for 33 years in Anantapur district to set up a 16 MW wind power project.
The project will be set up jointly by the ZR Energy Company and New and Renewable Energy Corporation of AP.
In the land allotment order that the government, the condition is that “the NREDAP shall assess the revenues from the project and ensure that the government gets a fair share in the stream of income from the land allotted”.
AP has allotted land to a few more companies to set up wind and solar power projects. In their land allotment orders too, the state government has imposed the same condition.
Sources said that the government wants to impose five to 10 per cent share in the profits of the projects.
When the file for allotment of government land to wind projects came to Deputy CM K.E. Krishnamurthy, who is also the revenue minister, he proposed this idea.
