**Executive Summary**
This document addresses challenges related to renewable energy projects in India. It outlines the government's approach to land acquisition, environmental concerns, the use of wasteland, community consultation, and compensation. The response was issued on December 3, 2025, as an answer to Unstarred Question No. 686 in Lok Sabha.
**Key Points / Main Content**
* **Land Identification for Solar/RE Projects:**
* Land is a State subject; the identification of land for setting up solar/RE projects is generally done through the respective State/UT Government.
* The Ministry has been writing to all States/UTs to identify suitable land for solar/RE projects and to ease land rules, such as exempting Non-Agriculture Land conversion.
* **Environmental Clearance:**
* Solar power generation (through photovoltaic cell) and wind power projects are classified under the "White category" as non-polluting and do not require environmental clearance.
* **Promotion of Wasteland Use:**
* The "Development of Solar Parks and Ultra-Mega Solar Power Projects" scheme encourages State/UT Governments to prioritize government waste/non-agricultural land for setting up solar parks.
* **Private Sector Land Acquisition:**
* Most solar and wind power projects are developed by the private sector, with land acquired according to the respective State's land acquisition and leasing policy.
* **Community Consultation and Compensation:**
* Local communities are consulted and adequately compensated for land used in large hydropower projects, as per information from the Central Electricity Authority (CEA).
* RFCTLARR Act 2013 ensures fair, transparent, and humane land acquisition with minimal disruption, providing compensation and proper rehabilitation.
* Public hearings and Social Impact Assessments are conducted to inform and involve affected families.
* For land acquisition for irrigation or hydel projects, rehabilitation and resettlement must be completed six months prior to the land's submergence.
* Affected families may be allowed fishing rights in reservoirs.
**Impact Analysis**
**State/UT Governments**
* **Impact**
* Responsible for the identification of suitable land for solar/RE projects within their jurisdictions.
* **Action Required**
* Prioritize the use of government waste/non-agricultural land for setting up solar parks.
* Follow State's land acquisition and leasing policy
**Private Sector Developers**
* **Impact**
* Responsible for acquiring land according to the respective State's land acquisition and leasing policy.
* **Action Required**
* Land acquisition as per respective State's policy
**Local Communities**
* **Impact**
* Potentially affected by land acquisition for renewable energy projects.
* **Action Required**
* Participate in public hearings and Social Impact Assessments.
* Affected families are eligible for compensation, rehabilitation, resettlement, and potential fishing rights.
**Central Electricity Authority (CEA)**
* **Impact**
* Provides information regarding consultation and compensation of local communities for large hydropower projects.
* **Action Required**
* Consult adequately with local communities and ensure adequate compensation for land used in large hydropower projects.
**Ministry of Environment, Forest and Climate Change**
* **Impact**
* Categorize industries based on pollution load, solar and wind power projects do not require environmental clearance.
* **Action Required**
* Continue to categorize based on pollution load.
Key Entities Referenced
RFCTLARR (The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement), Act 2013: Act that aims to ensure fair, transparent, and humane land acquisition with minimal disruption, providing compensation and proper rehabilitation.
Ministry of New and Renewable Energy: The ministry answering questions related to challenges of renewable energy projects.
Development of Solar Parks and Ultra-Mega Solar Power Projects: Scheme encouraging State/UT Governments to prioritize the use of government waste/non-agricultural land for setting up solar parks.
Ministry of Environment, Forest and Climate Change: Categorizes industries based on pollution load; solar/wind power projects do not require environmental clearance.
State/UT Government: Responsible for land identification for solar/RE projects.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 686
ANSWERED ON 03.12.2025
CHALLENGES OF RENEWABLE ENERGY PROJECTS
686. DR. PRABHA MALLIKARJUN
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the steps being taken by the Government to address land acquisition challenges and environmental
concerns in the development of large-scale solar, wind and hybrid renewable energy projects;
(b) whether the Government proposes to promote use of wasteland and non-agricultural land for
renewable energy parks and if so, the details thereof;
(c) the steps being taken by the Government to ensure that environmental clearances are granted
without compromising ecological balance; and
(d) whether local communities are being consulted and compensated adequately for land used in
renewable energy projects and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) to (c) Land is a State subject and therefore, the identification of land for the setting up of solar/RE
projects is generally done through the respective State/UT Government. In order to streamline land
identification and other related processes, this Ministry has been writing to all States/UTs on multiple
occasions for the identification of suitable land for solar/RE projects and also for easing land rules
like exempting Non-Agriculture Land conversion etc.
As per the Ministry of Environment, Forest and Climate Change categorization of industries based on
their pollution load, solar power generation through photovoltaic cell and wind power come under the
White category which pertains to those industrial sectors which are practically non-polluting. Hence,
solar photovoltaic power projects and wind power projects do not require environmental clearance.
The scheme for “Development of Solar Parks and Ultra-Mega Solar Power Projects” encourages the
State/UT Governments to prioritize the use of government waste/non-agricultural land for setting up
solar parks in the country.
(d) Land is a State subject and most of solar and wind power projects are being developed by the
private sector. Hence, the developer acquires land as per the respective State’s land acquisition and
leasing policy.
Further as per the information received from the Central Electricity Authority (CEA), local
communities are consulted and adequately compensated for land used in large hydropower projects.
RFCTLARR (The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation
and Resettlement), Act 2013 aims to ensure fair, transparent, and humane land acquisition with minimal
disruption, providing compensation and proper rehabilitation so that affected people become partners
in development and their living conditions improve after acquisition. Accordingly Public hearings and
Social Impact Assessments are conducted to inform and involve affected families. In case of acquisition
of land for irrigation or hydel project, being a public purpose, the rehabilitation and resettlement shall
be completed six months prior to submergence of the lands acquired. Also the affected families may
be allowed fishing rights in the reservoirs, in such manner as may be prescribed by the appropriate
Government.
*****