India will provide $ 2.6 billion more to Reuters for solar manufacturing

Author: Sudarshan Varadhan

CHENNAI (Reuters) – India will allocate an additional Rs 195 billion ($ 2.6 trillion) to boost investment in the manufacture of solar equipment, Finance Minister Nirmala Sitharaman said on Tuesday.

“Production-related incentives for manufacturing high-efficiency modules, from polysilicization to fully integrated photovoltaic solar modules, will be given priority,” Sitharaman said in his presentation of the federal budget.

Sumant Sinha, CEO of Renewable Energy and Solar Equipment Producer ReNew Power, said the additional allocation was welcome, adding that the new planned expenditure was more than four times last year’s allocation.

“This will give a big boost to support self-reliance while working towards the goal of achieving 280 GW of solar expansion by 2030,” Sinha told Reuters.

Sitharaman also announced that the government would issue green bonds, where the money is aimed at an environmentally friendly project aimed at raising money for government projects as India seeks to reduce the carbon intensity of its economy.

“The attractiveness of sovereign green bonds will boost our lending capabilities abroad because it gives credibility to foreign investors and domestic capital groups,” said Aarthi Sivanandh J. Sagar, a partner in the law firm of Associates.

The government also announced four pilot projects to gasify coal and convert coal to chemicals, and said financial and technical feasibility would be tested.

($ 1 = Rs 74,4800)