Centre’s Rs.5,800-crore investment move to boost domestic solar power sector

Centre’s Rs.5,800-crore investment move to boost domestic solar power sector

Since the stake holders in solar power sector are expecting a favorable policy and funding support in the Union Budget, which is due in April; the Government of India has proposed to spend about Rs.5,800 crore in solar sector. The move has come to give solar industry a much needed boost.

1,000 MW of grid-connected solar PV power projects by Central Public Sector units (CPSUs) and other government organizations have been proposed with VGF (viability gap fund) support of Rs.1,000 crore over a span of three years (2015-18).

NTPC, NHPC, CIL, IREDA and Indian Railways, have already agreed to set up solar plants.

Among others to join the solar bandwagon are, Defence establishments under Ministry of Defence and Para Military Force under Ministry of Home Affairs with Rs.750 crore support through VGF under the National Solar Mission, will set up over 300 MW of grid-connected and off-grid solar PV power projects during 2014-2019. Only locally made PV cells and modules, can be used in these schemes, which would eventually help the domestic manufacturers.

An investment of Rs.4, 050 crore in the States of Gujarat, Madhya Pradesh, Telengana, Andhra Pradesh, Karnataka, Uttar Pradesh, Meghalaya, Jammu & Kashmir, Punjab, Rajasthan, Tamil Nadu and Odisha, Governemnt of India plans to establish 25 Solar Parks, with 500 MW or above capacity each with a target of over 20,000 MW of solar power installed capacity over a period of 5 years (2014-19).

Expert say, that India has enough talent pool developed over the period of past 5 years to execute solar projects rapidly.