With solar power companies complaining about the non-availability of bank credit to the sector owing to the banking industry expressing reservations in extending credit, the government is stepping in to make bankers fall in line.
A high level bankers meet will be organised in Mumbai on August 25 to discuss the difficulties faced by banks in funding solar power units and finding a solution to make credit available to the solar sector.
“We will discuss the entire gamut of credit to solar sector. This includes quantum of fund and also interest rates,” Farooq Abdullah, Union minister for new and renewable energy, said. The meet would be attended by representatives of public and private sector banks, he said.
The solar power sector has been putting forth their grievance about bankers not considering funding to the sector as credible, since there are not many sizeable solar installations in the country.
“The capacities in solar power are being seen as a major concern by many bankers. Unlike in thermal, it is not possible, at this point, for solar energy companies to ramp upto hundreds of megawatts. But, for the country to make a beginning in the solar energy sector, banks will have to come forward,” a solar energy company representative said.
The recently unfurled national solar mission mandates setting up of 20,000 mw of solar power capacity by 2022. As part of this, the first phase would ensure setting up of 1,000 mw capacity.
“The incentives and other packages that would be given to the
sector will depend on the success of the first phase,” Abdullah said, speaking at Solarcon 2010 in Hyderabad.
However, he warned solar companies not to import cheap technology. “The technology should be valid for 25 years. There is also a rush from solar energy companies to get approvals from the government to set up capacities. But, if these companies resort to selling their permissions to other companies, we will blacklist them. It should not be like selling tickets in black market near cinema halls,” he said.
According to him, the government is keen on encouraging 50% of the planned capacity through solar photovoltaic and the remaining 50% through solar thermal. “Don’t buy cheap technology. For instance, China is a great market. They produce both the high-end technology and also the cheap technology. Buy the best,” he said.
The Centre is also working on a policy to encourage roof top solar installations mostly for solar water heating. The Union urban development ministry is said to be finalising a plan to introduce the rooftop solar plan in the urban areas to begin with.
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