Offshore Wind Worldwide 2022 edition - Flipbook - Page 114
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V. Real estate
A. Rights over land to be secured
With respect to offshore/seabed rights, the
MNRE has released its draft rules for
offshore wind energy leases but the same is
yet to be finalised and notified.27 Broadly, the
draft rules provide for lease of areas within
the EEZ of India to developers who have
been awarded offshore projects through the
ICB process. Areas under lease as per the
draft released would range from 100-500
km2 and the lease period would be five years
for planning and exploring activities and 30
years for establishment of offshore wind
power projects, which may be extended on
renewal of the lease for five years at a time
with due approval of the Indian Government.
While the draft indicates that no royalties
would be applicable for the development of
offshore wind projects, an annual lease fee at
INR 10,000 per km2 would have to be paid
for the duration of the lease. Further, a
deposit of INR 100,000 per MW would also
have to be paid in case of offshore wind
energy projects and INR 1000 per MW for
prospecting activities.28 As indicated, the
above is based on the draft rules released
which may be subject to change based on
stakeholder comments.
The Offshore Wind Policy is not clear as to
the scope of land acquisition or rights that
would have to be secured by developers on
onshore or nearshore land. As indicated in
section IV.A. above, the Offshore Wind
Policy indicates that the concerned STU/
27 Supra note 10.
28 Id.
Hogan Lovells
India
state government may facilitate onshore land
allocation to enable establishment of
substations. However, the policy does not
spell out which entity would construct the
substation and the cost allocation for the
same and clarity on this may emerge as the
policy framework evolves.
Developers typically would have to arrange
for right of way access for the transmission
infrastructure up to the interconnection
point at their own cost. The complexity in
arranging for this would depend to a large
extent on the nature of land over which such
access is required—for instance, if any land is
designated as eco-sensitive or forest land or
tribal land etc.
B. Costs and risk of legal challenges
The main challenge is to typically secure the
right of way access and the delays that may
result on account of delays in grant of right
of way access. Once right of way access has
been arranged and documented with
requisite fees having been paid, it is not
common for right of way to be withdrawn or
disrupted during the term of operation.
Insofar as offshore leases are concerned,
given that the lease would be granted by the
Government pursuant to a clearly defined
regulatory framework, risks during term of
operation that would hamper operation are
fairly unlikely—although, as described in
section VI below, proceedings challenging
validity of disruption of fishing grounds if
any or the compensation paid out may be
possible at the initial stages.