Centre’s Rs.5,800-crore investment plan, a big boost to solar power

December 25, 2014 11:27 pm | Updated 11:27 pm IST - CHENNAI:

It has been proposed to establish 1,000 MW of grid-connected solar PV power projects

It has been proposed to establish 1,000 MW of grid-connected solar PV power projects

Even as the solar power industry is expecting more favourable policy and funding support in the upcoming Union Budget, Central Government’s proposed spend to the tune of Rs.5,800 crore in solar sector is expected to give a much-need fillip to the industry.

It has been proposed to establish 1,000 MW of grid-connected solar PV power projects by Central Public Sector units (CPSUs) and other government organisations. These projects are to be established with VGF (viability gap fund) support of Rs.1,000 crore over a period of three years (2015-18).

Organisations such as NTPC, NHPC, CIL, IREDA and Indian Railways, among others have agreed to set up solar plants.

In addition to central PSUs, Defence organisations will also be joining the solar bandwagon. With Rs.750 crore support through VGF under the National Solar Mission, Defence establishments under Ministry of Defence and Para Military Force under Ministry of Home Affairs will set up over 300 MW of grid-connected and off-grid solar PV power projects during 2014-2019. . These two schemes will have to use only locally made PV cells and modules, a move aimed at helping the domestic manufacturers.

Meanwhile, Centre has also proposed to establish 25 Solar Parks, each with a capacity of 500 MW and above with a target of over 20,000 MW of solar power installed capacity over a period of 5 years (2014-19). This scheme is expected to entail an investment of Rs.4,050 crore. 12 States — Gujarat, Madhya Pradesh, Telengana, Andhra Pradesh, Karnataka, Uttar Pradesh, Meghalaya, Jammu & Kashmir, Punjab, Rajasthan, Tamil Nadu and Odisha — have so far given consent for building Solar Parks.

Industry experts point out a wave of optimism in the industry and expect 2015 would be an eventful year for the sector. Pashupathy Gopalan, Head of Indian operations and President-Asia Pacific, SunEdison, feels that India has developed enough talent pool over the past 5 years to execute solar projects rapidly. So, solar is not a new technology anymore and the concept of mega solar plants is very much happening. “It is not something which is difficult. And, solar projects generally use unusable barren land. Those are the lands that are not used for agriculture and located away from cities,” he added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.