Japan’s Softbank Corp, together with Bharti Enterprises and Taiwan’s Foxconn, will certainly invest about $20 billion in Indian Solar Projects. Previously Softbank said it would invest $10 billion in India over time. The companies has concurred a minimum commitment of generating 20 gigawatts of energy. India is said to be cost effective than Japan, the cost of construction of solar park is less than of Japan which shows the efficiency of India. The timeline for financial investments would depend on state and central governments and on acquiring land needed for the plants. Softbank will have more control in the newly formed Company SBG Clentech.
Softbank will own majority stake and Bharati and Foxconn will take minority stakes subject to certain conditions. They have already made considerable investments in the technology sector in India. Their aim is to create a market leading clean energy company to fuel India’s growth. SBG Cleantech’s commitment to India’s growth plans not only by eliminating energy deficit but also providing clean environment to the future generations of India.
The fast falling expense of solar power, expected to reach equality with conventional energy by 2017, has instigated interest in its potential in India. The nation is stepping up its own attempt to encourage investment in eco- friendly energy. Despite more than 300 days of sunlight a year, India depends on coal for three-fifths of its energy requires, while solar products supplies less than 1 percent. Prime Minister Narendra Modi has asked industry for help in funding what government advisors hope will certainly be a $160 billion push into renewable energy over five years. Narendra Modi intends to make India among the world’s largest sustainable renewable resource markets, targeting 100,000 MW of output by 2022 from just 3,000 MW presently.
However analysts states that India’s target will be difficult to reach. The main reasons being financial resources of electricity distribution companies that would buy solar energy and the slow pace at which land for plants is made available. The company intends to participate in the 2015-16 round of solar power plant tenders. Foxconn would help with prepared solar devices for the jobs. The companies are taking a look at manufacturing equipment in India, as part of the “Make in India” campaign and this would definitely give a boost to Indian Solar Projects in future.
