Gujarat appears to be losing its status as the favourite destination of wind developers. Most winners of the latest wind auction conducted by the Solar Energy Corporation of India, the nodal agency that offers renewable energy projects, have decided to set them up outside Gujarat because of land issues that have arisen there lately, according to several people aware of the matter. Gujarat was favoured for wind projects because it has many sites, especially in the Kutch area, where wind speeds are very high. However, over the past several months, the state has gone slow on leasing land to projects auctioned by central agencies. About 2 acres are needed to generate a megawatt of wind energy. Of the 7,000 MW of wind projects auctioned last year, almost 3,500 MW are expected to be commissioned in Gujarat. However, with the state reluctant to lease land, some developers have started buying private land there, a more expensive alternative.
