Lok Sabha Question No. 352 (STARRED), answered on 2015-08-13
Subject: Foreign Investment in Solar Power Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: A.T. (NANA) PATIL

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA STARRED  QUESTION NO. 352

TO BE ANSWERED ON 13.08.2015

## FOREIGN INVESTMENT IN SOLAR POWER SECTOR

## *352. SHRI A. T. NANA PATIL :

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether  solar  energy  plants  have  been/being  set  up  with  foreign  investment  in  the country including Maharashtra;
- (b) if so, the details thereof including the investment made by the foreign companies for the purpose, country-wise;
- (c) whether  the  Government  plans  to  allow  firms  to  bid  tariffs  in  dollar  to  encourage foreign investment and if so, the details thereof;
- (d) whether the Government proposes to auction around 3500 MW solar power capacity on turnkey basis or the engineering, procurement and construction mode and if so, the details thereof; and
- (e) the other steps taken by the Government for encouraging solar power generation in the country?

## ANSWER

THE  MINISTER  OF  STATE  FOR  POWER,  COAL  &  NEW  AND  RENEWABLE ENERGY (INDEPENDENT CHARGE) (SHRI PIYUSH GOYAL)

(a), (b), (c),(d)&(e)

:

A statement is laid on the Table of the House.

*****

## Statement  referred  to  in  reply  to  parts  (a),(b),(c),  (d)  &  (e)  of  Lok  Sabha Starred  Question  No.  352  to  be  answered  on  13/08/2015  regarding  'Foreign Investment in Solar Power Sector'

(a): Yes, Madam.

(b): Solar power plants are being set up in the country mostly by private developers. Solar power  developers  arrange  financing  from  various  sources  which  may  include  foreign investment  as  well.  The  details  of  solar  energy  plants  under  the  aegis  of  the  Central Government being set up with major investment from foreign sources is at Annexure-I and those under State initiatives of major solar power producing States is at Annexure-II.

(c): Currently Government has not finalized any plan to allow firms to bid tariffs in dollar to encourage foreign investment.

(d) Government does not auction solar power capacity directly, but some Public Sector Undertakings (PSUs) have given commitments to set up solar power plants which may be auctioned by them on turnkey basis or the engineering, procurement and construction mode. NTPC Ltd. has given commitment for setting up 10,000 MW capacity of solar power.

(e): For encouraging solar power generation in the country, the Government is providing the following incentives to solar power developers:

1. Grant of subsidy on off-grid applications
2. Provision of Renewable Purchase Obligation (RPO) for solar has been made in the National Tariff Policy.
3. Generation  Based  Incentives  (GBI)  and  facility  for  bundling  power  for  grid connected solar power projects through various interventions announced from time to time.
4. Grant of Viability Gap Funding (VGF).
5. Renewable Energy Sector has been awarded Priority Sector Lending status
6. Concessional  Import  duty  /Excise  duty  exemption  for  setting  up  of  solar power plants, accelerated depreciation and tax holiday.
7. Roof-top Solar PV systems have been made eligible for home loans
8. Tax free green bonds of INR 5,000 crores.
9. Creation of Payment Security Mechanism.
10. Development of solar parks.
11. Setting up of Green Energy Corridors.
12. Waiver  of  wheeling  charges  on  Inter-State  Transmission  System  (ISTS) network

Annexure-I referred to in reply to part (b) of Lok Sabha Starred Question No. 352 to be answered on 13/08/2015 regarding 'Foreign Investment in Solar Power Sector'

## Solar energy plants under the aegis of the Central Government being set up with major investment from foreign source

## A. Under Bundling Scheme

|   Sl. No. | Nameof the project developer      |   Capacity (MW) | Country   | State     | Foreign Investment portion of the project cost   |
|-----------|-----------------------------------|-----------------|-----------|-----------|--------------------------------------------------|
|         1 | SEI Solar Power Pvt. Ltd.         |              20 | Singapore | Rajasthan | 13.5 million US Dollar                           |
|         2 | Fonroche Saaras Energy Pvt. Ltd.  |              15 | France    | Rajasthan | 9.49 million Euro                                |
|         3 | Fonroche Raajhans Energy Pvt. Ltd |               5 | France    | Rajasthan | 9.49 million Euro                                |
|         4 | Pokaran Solaire Energy Pvt. Ltd.  |               5 | France    | Rajasthan | 3.2 million Euro                                 |

## B. Under Viability Gap Funding Scheme

|   Sl. No. | Nameof the project developer               |   Capacity (MW) | Country     | State          | Estimated total Investment in the Project (Rs. Cr.)*   |
|-----------|--------------------------------------------|-----------------|-------------|----------------|--------------------------------------------------------|
|         1 | SEI Sitara Pvt. Ltd.                       |              30 | Singapore   | Madhya Pradesh | 272.10                                                 |
|         2 | SEI L'Volta Pvt. Ltd.                      |              20 | Singapore   | Madhya Pradesh | 161.40                                                 |
|         3 | SEI Suryalabh Pvt. Ltd.                    |              30 | Singapore   | Rajasthan      | 245.80                                                 |
|         4 | Focal Photovoltaic India Pvt. Ltd.         |              10 | Cyprus      | Madhya Pradesh | 76.50                                                  |
|         5 | Focal Renewable Energy Two India Pvt. Ltd. |              10 | Cyprus      | Madhya Pradesh | 76.50                                                  |
|         6 | Focal Energy Solar One India Pvt. Ltd.     |              20 | Cyprus      | Madhya Pradesh | 156.36                                                 |
|         7 | Finnsurya Energy Pvt. Ltd.                 |              10 | Netherlands | Madhya Pradesh | 82.36                                                  |
|         8 | Northern Solaire Prakash Private Limited   |              20 | France      | Rajasthan      | 146.00                                                 |
|         9 | Suryauday Solaire Prakash Private Limited  |              10 | France      | Rajasthan      | 76.33.00                                               |

* (Figures are for total project cost.  The entire project cost can be either fully or partially Foreign Direct Investment (FDI). However, these investment details have not been shared by the investing companies.)

Annexure-II referred to in reply to part (b) of Lok Sabha Starred Question No. 352 to be answered on 13/08/2015 regarding 'Foreign Investment in Solar Power Sector'

## Solar energy plants under the State initiatives of major solar power producing States, being set up with major investment from foreign source

- A. Andhra Pradesh
- B. Punjab

|   Sl. No. | Nameof the project developer                  |   Capacity (MW) | Country     | State          | Estimated total Investment in the Project (Rs. Cr.)   |
|-----------|-----------------------------------------------|-----------------|-------------|----------------|-------------------------------------------------------|
|         1 | First Solar India Pvt. Ltd.                   |              80 | USA         | Andhra Pradesh | 200 (30% equity component)                            |
|         2 | SunEdison Energy Holding (Singapore) PTE Ltd. |              60 | Netherlands | Andhra Pradesh | 150 (30% equity component)                            |

|   Sl. No. | Nameof the Company                        |   Capacity (MW) | Country   | State   |   Total Approximate Investment (Rs. Cr.) |
|-----------|-------------------------------------------|-----------------|-----------|---------|------------------------------------------|
|         1 | Abundant Energy P. Ltd.                   |               2 | USA       | Punjab  |                                    16.40 |
|         2 | Allianz Eco Power Limited                 |               2 | USA       | Punjab  |                                    15.50 |
|         3 | Mokia Green Energy P. Limited             |               4 | Slovakia  | Punjab  |                                    31.00 |
|         4 | Solairedirect Projects India Pvt. Limited |              20 | France    | Punjab  |                                   150.00 |
|         5 | Focal Energy Solar India Pvt. Limited     |               4 | Israel    | Punjab  |                                    32.25 |

The other major solar power producing States have reported NIL for above.