Report - Addressing Land Issues for Utility Scale Renewable Energy Deployment in India
ANNEXURE IV: COMMUNITY BUSINESS MODELS As the economy is expanding the electricity demand is going to grow further. Due to the renewable energy impetus, an increase in the development of wind and solar farms is expected in India. RE projects require land, which is a scarce resource. Since RE sector is growing fast, the land acquisition issues may rake up socio-economic conflicts. To minimise the socio-economic impacts of RE projects due to land procurement, few community business models have been developed which are discussed below. LLP Model A Limited Liability Partnership (LLP) may be formed, where the land-owners become stakeholders in the LLP to the extent of their land value contribution. Refer Figure 12. Figure 12: Schematic of LLP Business Model
The key aspects of the LLP model are as follows: 1) Landowners will be engaged in the business as equity shareholders. Value of equity shareholding will be corresponding to the value of land. Return on Equity therefore will be accordingly computed. 2) Capital value of land will be open to negotiation between the landowners and
Page 105 of 107
