Indian Solar Sector
According to the World Bank estimates India requires investment of over $13 billion in the next three years to meet the target of adding 9,000 MW of solar power in the second phase of the Jawaharlal Nehru National Solar Mission. In a report titled 'Paving the Way for a Transformational Future: Lessons from JNNSM Phase I,' the World Bank said the investment needs to come largely from scheduled commercial banks. Out of the total investment nearly 70%, or $9 billion, should come through debt financing, Lead Energy Specialist, World Bank, Ashish Khanna, said, adding that financing is a key challenge during the first phase and will continue to remain so during phase two. In addition, it also suggested that the government could offer financial solutions involving viability gap funding, generation-based incentives, credit guarantees and credit lines on concession basis to banks to lower rates.