How Datta Infra has emerged as a key player in land acquisition for the renewable corporates of India
CXOToday has engaged in an exclusive interview with Mr. Varchasvi Gagal, Chief Executive Officer & Managing Director, Datta Infra
- Can you share a brief about Datta’s journey so far?
Founded by Varchasvi Gagal, Datta Infra is one of the emerging Renewable Energy developer players in India catering to the country’s top renewable corporates. It was founded in 1987 as an accounting and legal consulting firm and operated in the said space until 2019. From 2020 onwards, Varchasvi Gagal took over the reins of the company and aimed to provide an organized and sustainable solution for land consolidation to the renewable energy players in the market. In addition to land aggregation and development, the company is a one-stop solution for Land Infrastructure Development, Transmission Connectivity Solutions, Land Aggregation, and Solar Power, in India. It provides environmental and legal clearances as per State and Centre Government policies, along with the necessary permissions as per local laws impacting the site. Additionally, Datta Infra can also procure for its clients’ land records of thirty years along with agricultural, revenue and title searches, for lands on sale. It also has a deep insight in land allotment laws of multiple states.
The company has till date acquired over 10,000 acres of land which houses solar power projects of 2.4 GW. Datta Infra also has a vast land bank that is duly screened and readily available in the market. The company has led several prestigious large-scale projects in India including those of the Central and State Governments. The company is also directly and indirectly catering to PSUs including NHPC, National Thermal Power Corporation Limited and Satluj Jal Vidyut Nigam.
- What are the set of challenges faced by Datta Infra in the land acquisition process?
Land acquisition is a complex process in India that is often accompanied by numerous challenges at every level. The land is governed not only by ownership but also by the nature of ownership on record and on the ground. There are cases of gair Khatedari and khatedari rights prevalent throughout the state of Rajasthan, which means that in case of gair khatedari, land has been allotted but the rights pertaining to khatedari (utilization) of the land are not with the owner. Hence in such cases the sale deeds/lease deeds cannot be taken up for such lands until or unless you apply to the relevant government department and obtain khatedari orders for the same. Encroachment and village overlapping issues, as well as effective land demarcation for land possession, continue to be difficult battles for developers. Local political demography and the involvement of multi-level groups impose significant costs on developers.
Obtaining the right of way (ROW) for the transmission line is one of the biggest challenges faced by every developer. A 20-kilometer power line of 440 kva requires at least 67-70 towers, which, when combined with the required approvals from various government and related agencies, as well as local body authorities, creates an even greater challenge. Another significant issue that arises during land acquisition is determining the nature of land ownership and revenue laws governing the ownership of such land for example a village is generally deemed to be under revenue when the records are governed by regular jamabandis posted at the land revenue website while there are other villages who are under colonization and record is only maintained by colonization department which currently has no online presence. The Colonization department has its own set of permissions and regulations which requires advanced legal title search reports and licensing requirements.
When a site is shared by multiple villages then possession of land is also governed by different local patwari and overlapping of land might become a serious issue to deal with in such cases. The overlap is caused by the constant redrawing of village boundaries combined with non-digitized property paper records. To reach an amicable solution between villages, a team of all patwaris assembled under the command of the district collector is required to ensure that the land quantum registered is correct and easily accessible. Settlements officers along with surveyors and drone processors aide in the process.
- What Initiatives should be taken by the government to simplify the land acquisition process in India?
Government should emphasize the digitization of land records to simplify and speed up the land acquisition process. Land acquisition for solar projects would be more convenient with the proper identification of suitable project sites based on their land type, use, resource potential, latitude, and availability of transmission infrastructure. Consolidation of land records from the last 30 years can also help to streamline and improve the land acquisition process.
Land registration was changed between multiple tehsils in the last sixty years attracting a lot of conflicts between past sale deeds and title clearances. Government can encourage the making of unique software with an interactive AI that can enable substation support in clearing such issues. Problems like GIB, Colonization, IGNP, Forest, Environment, PACL and others must be effectively clubbed in such software for transparency and confidence of investors. We are currently working towards a similar software and also plotting land banks pan India by derisking asset buying complications. These initiatives can simplify the land acquisition process at the root level.
- Briefly describe the land acquisition process in India and the role played by Datta Infra in it?
Datta Infra provides an organized and sustainable solution for land consolidation to the renewable energy players in the market. We identify locations close to state substations or electricity grid substations in accordance with the project’s specifications. Once the land has been chosen, the company obtains the necessary environmental and legal permits. The land acquisition procedure begins with a thorough examination of how much solar power evacuation could be performed in addition to a cost estimate for a specific project. We take care of the land consolidation portion, which is completed and given to the principal developer/investor and completely gated with the right ROW of the transmission line. A transmission line is also deployed by Datta Infra after all clearances have been assessed
- What are set of key clients that Datta Infra has worked with so far? Also, please mention the key projects in the pipeline for 2023.
The company has led several prestigious large-scale projects in India including those of the Central and State Governments. Among its key clients are Tata Power and Mount Litera Zee School. The company is also indirectly catering to PSUs including National Thermal Power Corporation Limited, National Hydro Power Corporation and Satluj Jal Vidyut Nigam. We are executing 2 GW of part EPC for MultiNational Companies and reputed Indian businesses along with Maharatna PSU’s.
- How many projects have been executed by Datta Infra so far? Also, please mention the locations of the project and the acres of land acquired for the same.
Some of the key projects completed by Datta Infra so far:
- CPSU 1 – 300 MW – DEVELOPER NTPC
- CPSU 2 – 250 MW – DEVELOPER NTPC
- 225 MW TATA POWER GREEN (DEVELOPER) HYBRID
- 110 MW KSEB DEVELOPER
- Orissa – 50 MW Private Park
- Chattisgarh – 100 MW PPA with Transmission line
- Tamil Nadu – 110 MW park with connectivity and transmission
- Gujarat- 100 MW
- Maharashtra – 300 MW
- Ongoing project of 1 GW for SJVN with transmission line.
- 300 MW – NHPC at Bikaner, Rajasthan
- Leasing of 1500 acres land for TATA Power
- With more focus on green energy, how the renewable energy sector has evolved over the years?
The renewable sector of India is evolving rapidly over the years. The energy sector is expected to witness a steep rise due to the increasing population size and the enormous energy growth potential in India. The country aims to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030. Fulfillment of this step will play a key role in the global effort to combat climate change. According to a report in IBEF, India was ranked fourth in wind power, fifth in solar power, and fourth in renewable power installed capacity, as of 2020. Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 15.92% between FY16-22. With the great government initiatives in the policy framework, the renewable energy sector has become a lucrative sector for investors. India will see great investments and enormous growth in the coming years. Robust demand, competitive advantage, and increasing investments coupled with smooth policy framework mark the bright future of the renewable energy sector in the coming years.
- Please share Datta Infra’s future expansion plans for 2023
Datta Infra will be expanding its base to south India with skilled knowledge set in Andhra Pradesh, Karnataka and Maharashtra. We will be increasing our infrastructure base machinery to changing technology like ramming and monopole execution. We are also venturing into grid and sub station design and execution. We are developing a dedicated site network for Hybrid RTC models which will be backed by private PPA’s for our clients.
