As per reports emanating from various sources, the country’s clean energy segment will make the most out of the recent prime minister’s visit to the US as clean power generating companies in the US have readied a staggering $ 1 billion plan for the clean energy sector of the country.
To finance sourcing of components from the US for Indian renewable power project developers, Indian Renewable Energy Development Agency (IREDA) and the US Exim Bank would sign an agreement for the financing spanning over 18 years, said sources adding that the agreement has been signed and this amount would be extended as tied loans on a project-to-project basis. There would be a fine balance for all kinds of renewable-based power projects. Though the major import from the US is solar panels, loans are likely to give much-needed push to solar power project development, said sources.
They said adding that there is a rider that 30 per cent of the total equipment in the power project should be domestically sourced. Confirming the development, chairman and managing director, IREDA, K S Popli, has admitted that the loan amount of up to $1 billion is extended by the US Exim bank to IREDA for disbursal to grid-connected projects. Though there is no sovereign guarantee that comes with the loan but it would be extended to anyone who wants to set up a renewable energy-based power project with equipment sourcing from the US. The country aims to add about 4,500 Mw of solar power capacity during the current financial year to the existing capacity of 2,600 Mw. The manufacturing capacity of solar panels in the country, however, is just 1,500 Mw. To invite global players to the country, the ministry of new and renewable energy would also host the first-ever renewable energy global investment promotion meet in February next year. This goes well with the mega 'Make in India' plan of the government to boost manufacturing in the country. While wind turbines in the country are mostly domestically sourced, 70 per cent of its solar capacity is based on imported content, mostly from China and the US. The government recently quashed the imposition of dumping duty on imported solar cells and modules from the US, China, Malaysia and Taiwan.