Report: India’s government establishing new solar company

• 
  The Indian government has decided to establish a new solar company with an initial capital of US$405.6 million.
• 
  India's government has announced the creation of Solar Energy Corporation.

According to a report from The Wall Street Journal, the Indian government has decided to establish a new solar company with an initial capital of US$405.6 million, which will go towards the development of federal solar projects in order to reach the country’s 20GW solar energy capacity target by 2022.

Renewable Secretary Gireesh B. Pradhan stated in a recent interview that Solar Energy Corp. of India will slowly take over responsibility for federal solar projects from NTPC Vidyut Vyapar Nigam. The establishment of the government solar company comes as fears abound about the lack of funds or interest by commercial companies for Indian solar projects.

The Wall Street Journal notes that the first round of bidding for the National Solar Mission had little interest from domestic and foreign companies due to low tariffs, narrow margins and other financial deterrents. The second round is anticipated to have received more interest after bidding rules were changed with results announced within a week. The winners from both rounds expected to begin production by March 2013.

Pradhan noted that the new solar company will help finalize funding of solar projects. The financing company has around 13 billion rupees in reserves with nearly half of that amount coming from the government. India is looking to begin road shows in the US and Europe in May to catch the attention of investors in renewables, especially in the solar sector, for the next phase of the NSM, which will begin in April 2013.

The Indian Solar Investment and Technology Summit and Exhibition on 19-20 April, will be used as a platform to discuss current issues in the Indian market.