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India Seek Multi-billion Dollar Funds for Solar Power Project
Feb 01, 2015

The Indian government, which has set an ambitious target of growing India’s solar power capacity 40-fold in 10 years, is in the process of tying up a multi-billion dollar assistance from international funding agencies such as World Bank, German development bank KfW.

  • Solar power plays a major role in the government’s promise to provide 24x7 power in the entire country.

  • At present, it has a miniscule 2,500 Mw share in the total installed power generation capacity of close to 250,000 Mw.

  • To take this to 100,000 Mw of installed solar power over the next 10 years, it would need funds to the tune of Rs. 6 lakh crore or $100 billion.

Talks are on at the highest level in the government with leading international funding agencies to roll out this initiative and steps are also afoot to attract investors through a suitable policy for setting up solar power projects in India. Talks have been held with the World Bank, and negotiations are also on with German development bank KfW for a soft loan of over one billion Euros (Rs. 7,700 crore).

A programmatic engagement is underway with funding agencies on solar sector supporting government’s initiatives announced in the budget on ultra-mega solar power projects and solar parks.

These would be done through a long-term partnership with Solar Energy Corporation of India, focusing on three dimensions: supporting ultra-mega solar power plants through long tenure financing, beginning with 750 Mw in Madhya Pradesh; large scale 100 Mw rooftop decentralised solar power through partnerships with agencies such as Airport Authority of India, Railways and Warehousing Corporation of India; and by setting up five solar parks.

States such as Rajasthan, Uttar Pradesh, Telangana, Gujarat, Andhra, Karnataka and Madhya Pradesh have been identified to set up big solar power projects.


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