Japanese investors keen on India’s infra growth story: Arun Jaitley

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TOKYO: Japanese conglomerate SoftBank and a number of investors here have shown keen interest in investing in India’s “infrastructure growth story”, Finance Minister Arun Jaitley said today as he kicked off his 6-day visit to Japan aimed at attracting investments from Asia’s second biggest economy.

After a meeting with Jaitley, SoftBank Group CEO Masayoshi Son said he is also interested in Internet companies as well as solar energy sector, where he has already announced $20 billion investment through a joint venture.

“There are people who want to participate in infrastructure growth story. For example, at the SoftBank meeting we just had, they are looking at one of the biggest investments in solar power already,” Jaitley said after meeting Son.

“There are people who want to participate in infrastructure growth story. For example, at the SoftBank meeting we just had, they are looking at one of the biggest investments in solar power already,” Jaitley said after meeting Son.

In June last year, SoftBank announced that the group was forming a joint venture with Bharti Enterprises and Taiwan’s Foxconn Technology Group to invest about $20 billion in renewable energy in India. The JV would aim to generate 20 gigawatts of electricity.

“They have made considerable headway and have identified location. It will probably be one of the largest investment in those areas,” Jaitley said.

The Japanese telecom and Internet giant has made a string of tech investments in India, amounting to $2 billion in the past two year. SoftBank is looking at accelerating the pace of investments in the future.

“India has a great future… We are interested in investing for Internet companies, also for solar energy. We would make a strong commitment,” Son said.

He had previously said that India’s market is poised for massive growth, making it an important destination for investors.

SoftBank’s investments in the past two years include $627 million in online-retailing marketplace Snapdeal and leading a $210 million funding round in taxi-hailing app Ola Cabs.

It paid $200 million for a 35 per cent stake in InMobi, an Indian mobile-advertising network, starting in 2011.

SoftBank also has a JV with Bharti Group, Bharti SoftBank, the investments of which include the mobile application Hike Messenger. Its other investments include real-estate website Housing.com, hotel-booking app Oyo Rooms and Grofers.

Son had previously predicted that India’s e-commerce industry would become a $500 billion business in the next 10 years.

SoftBank, which owns one of Japan’s biggest mobile carriers and a controlling stake in US-based Sprint Corp, has been moving quickly to expand its Internet and media holdings.

As the largest shareholder in Alibaba Group Holding Ltd, the Chinese e-commerce company, SoftBank has ample resources to deploy for acquisitions.

Source: http://economictimes.indiatimes.com/articleshow/52491788.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

World’s largest rooftop solar power plant inaugurated in Punjab

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World’s largest single rooftop solar power plant of 11.5 Mw capacity was inaugurated in Beas near Amritsar in Punjab on Tuesday. Spread at a single rooftop stretch of 42 acre at Dera Baba Jaimal, the project was synchronized earlier this year.

According to Wikipedia,the Mandalay Bay Resort Convention Centre, Las Vegas in the United States is next biggest solar photovoltic power station in the world having 6.4 megawatts (Mw) capacity. The EPC contractors for the project were Tata Power Solar and Larsen and Toubro.

In addition to single largest rooftop solar power plant, seven rooftop solar power plants of 8Mw capacity were also inaugurated in Beas Dera campus making this place the highest single campus generating solar power of 19.5 Mw at multiple rooftops in the country, informed a senior official from Punjab Energy Development Agency (PEDA ).

Punjab is generating 470 Mw of solar power and with projects of 500 Mw in the pipeline, the state would be able to generate solar power of close to 1,000 Mw by the end of FY 2016-17.

New & Renewable Energy Resources Minister of Punjab Bikram Singh Majithia said this project would generate clean and green energy sufficient to power approximately 8,000 homes. He pointed out that GOL has set a target of power generation of 40,000 Mw from different resources of renewable energy to be achieved by 2022 and this project would be a role model to encourage other states to replicate such large rooftops on the building/sheds.

The investment in this sector has steeply gone up from Rs 82 crore in 2012 to nearly Rs 10,000 crore now with an employment potential of 12,500 jobs, he said. Punjab would achieve a target of 2552 MW of renewable energy generation by 2022, he added.

He said Punjab would achieve a target of 2552 MW of renewable energy generation by 2022.Solar projects have been executed on BOO (built-operate-own) basis and PEDA has entered into 25 year power purchase agreements with the private players.

Source: http://www.business-standard.com/article/economy-policy/world-s-largest-rooftop-solar-power-plant-inaugurated-in-punjab-116051701113_1.html

Clean energy projects get Rs 86,000 crore investment

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Renewable energy projects have received Rs 86,000 crore investment, most of it from private sector, in the last three years with Madhya Pradesh at top garnering Rs 14,313.80 crore.

“Most of the investment in renewable energy came from private sector. Total estimated investment in renewable energy power projects during the last three years is around Rs 86,000 crore,” New and Renewable Energy Minister Piyush Goyal said in a written reply to Lok Sabha today.

According to the statement, around 15,400 million units has been generated through solar power projects during the last three years.

Madhya Pradesh remained at the top, recording maximum investment in clean energy projects at Rs 14,313.80. It was followed by Maharashtra at Rs 13,743.01 crore, Rajasthan at Rs 11,632.96 crore, Karnataka at Rs 9,586.31 crore, Andhra Pradesh at Rs 9,539.12 crore, Tamil Nadu at Rs 8,961.28 crore and Gujarat at Rs 6,646.35 crore.

The minister also stated that Pondicherry, Laskhwadeep, Dadar & Nagar Haveli, Sikkim, Manipur, Meghalaya and Goa received no investment at all for renewable energy projects in last three years.

According to a separate reply to the House, as on March 31, 2016, a cumulative capacity of 42.76 GW has been installed from various renewable energy sources, which include 26.78 GW from Wind, 6.76 GW from solar, 4.27 from small hydro power and 4.95 GW from bio power.

In another reply to the House, the Maharashtra will require the maximum solar power generation capacity of 13,270 MW by 2021-22 as per tentative renewable purchase obligation (RPO) requirement estimated by the ministry.

The ministry has estimated 1,02,021 MW solar power generation capacity to be installed in the entire country by 2021-22.

After Maharashtra, Uttar Pradesh’s solar power generation capacity by 2021-22 as per RPO requirement would be the second highest at 12,124 MW followed by Gujarat at 9,796 MW, Tamil Nadu at 9,398 MW and Rajasthan 6,953 MW.

Under RPO, states are mandated by power regulators to have certain proportion of renewable energy capacity in their total power mix to promote clean and green sources like solar and wind.

The minister in another reply to the House stated that the new pithead thermal power plants have the lowest tariff of Rs 3.75 per unit in the first year of operation compared Rs 4.5 per unit for solar, Rs 4.6 for hydro, Rs 4.94 for atomic power and Rs 5.49 for non-pithed thermal plants.

However, the levellised tariff for hydro power plants is the lowest at Rs 4 per units compared Rs 4.5 for solar, Rs 5 for atomic power, Rs 4.57 for pithead based thermal power and Rs 7.57 per unit for non-pithead based thermal power plant.

Source:http://economictimes.indiatimes.com/articleshow/52125394.cms

Renewable Energy Growth Will Remain Strong Through 2040

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“In its forward-looking report for the year, the U.S. Energy Information Administration forecasts renewable energy will be the fastest-growing power source through 2040,” writes Scientific American .

 

“New investments in renewable energy rose from $9 billion in the first quarter of 2004 to $50 billion for 2015’s first quarter…and the volume of installed photovoltaic systems in the United States has grown every year since 2000.”

 

“The story that renewable energy advocates often share of how their favorite power sources have grown so rapidly over recent years belies the reality that those industries have expanded from small market shares to start. Yet with increasing interest, investors are targeting renewables as strong assets, not dodgy options.”

 

Source: http://www.rollcall.com/news/renewable-energy-growth-will-remain-strong-through-2040#sthash.xUP8XuIh.dpuf

Canadian fund commits Rs 1012 crore for renewable energy in India

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CDPQ, which deals primarily in public and para-public pension and insurance plans, also announced the establishment of its Indian office in New Delhi.

Canada’s institutional fund manager Caisse de depot et placement du Quebec (CDPQ) on Wednesday said it has committed an investment of $150 million (Rs 1012.05 crore) in the Indian renewable energy sector. CDPQ, which currently manages $248 billion (Rs 16.73 lakh crore) in net assets, invests globally in major financial markets, private equity, infrastructure and real estate.

“CDPQ plans to commit $150 million to renewable energy investments in India,” the company said in a statement.

Over the next 3-4 years, CDPQ will use its commitment to target hydro, solar, wind and geothermal power assets with investments likely to take the form of select partnerships with leading Indian renewable energy companies, it added.

“We believe that India stands out as an exceptional country to invest in, given the scope and quality of investment opportunities, the potential for strategic partnerships with leading Indian entrepreneurs and the current government’s intention to pursue essential economic reforms,” CDPQ President and CEO Michael Sabia said.

CDPQ, which deals primarily in public and para-public pension and insurance plans, also announced the establishment of its Indian office in New Delhi. It appointed Anita Marangoly George managing director of its South Asia operations.

George, who joins the company from the World Bank where she was working on the global practice on energy, had helped finance the first commercial solar project in the country, the statement said. She will be taking up the new assignment from April 1 this year, it added.

 

Source: http://www.dnaindia.com/money/report-canada-s-fund-manager-commits-rs-1012-crore-investment-in-indian-renewable-energy-2187291

France will partner India to build three ‘smart’ cities

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France partners with IndiaFrance will help India develop Chandigarh, Nagpur and Puducherry as smart cities. Agence Française de Developpement (French Development Agency) signed memoranda of understanding with the government of Union territory of Chandigarh, and government of Union territory of Puducherry and the Maharashtra government here on Sunday in the presence of French President Francois Hollande and Prime Minister Narendra Modi.

Chandigarh, designed by the French architect Le Corbusier half a century ago as a model city, is spread across 114 sq km and the urban infrastructure and green belt of the city provide it a distinguished status among India’s planned cities.

On January 26, Modi is set to announce the official list of 20 smart cities to be developed in the first phase.

A delegation of 26 CEOs from France travelled to Chandigarh with Hollande and had discussions on CEO forums to explore partnerships in renewable energy, defence, information technology and aerospace.

Modi said French companies can exploit India’s trained and affordable manpower to expand their manufacturing operations in the country. The French president committed annual investment to the tune of €1 billion to strengthen business relations with India.

An agreement between Airbus and Mahindra was also inked under Indo-French cooperation to manufacture helicopters within the Make in India initiative.

French companies will also collaborate with public sector firm Engineering Projects India to provide integrated railways solutions. The railway stations of Ambala and Ludhiana will also be redeveloped with French partnership.

The French delegation evinced interest in the areas of renewable energy, infrastructure, transport, defence, and water treatment.

Source: http://www.business-standard.com/article/economy-policy/france-will-partner-india-to-build-three-smart-cities-116012500034_1.html

UAE earmarks key sectors like railways, housing, ports, roads for investments in India

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It is part of the $ 75 bn announced during Prime Minister’s August trip to the Gulf nation that marked a paradigm shift in bilateral strategic and economic partnership.

Oil-rich United Arab Emirates (UAE) has identified key sectors including railways, housing, ports, roads and renewable energy (mainly solar) for investments in India as part of the $75 billion announced during Prime Minister’s August trip to the Gulf nation that marked a paradigm shift in bilateral strategic and economic partnership.

UAE had announced to investment $75 billion for various sectors in India when Narendra Modi made a two-day trip to Abu Dhabi and Dubai last August — first by an Indian PM to the Gulf nation in three decades. Earlier this month, Finance Minister Arun Jaitley was in UAE to discuss this investment proposal among other issues and met senior officials of the Abu Dhabi Investment Authority (ADIA), one of the largest sovereign funds in the Gulf nation, officials from Abu Dhabi said.

ADIA would contribute to the $75-billion fund allotted for investments in India in sectors including railways, roads, housing, ports and renewable energy (solar initiatives) where the Modi government is seeking foreign direct investment to boost economy, officials from the Gulf state indicated. The Indian PM is likely to announce a solar mission at the Paris climate change summit.


However, UAE is pushing to begin the process of investments in near future by various ministries in keeping with Modi’s promise. “India is now a strategic partner for UAE and Abu Dhabi wants to invest in India’s growth and seeking expedition of the process on the ground,” a person familiar with the developments told ET.
With this goal in mind Jaitley met Sheikh Hamdan Bin Rashid Al Makhtoum, Minister of Finance, UAE, to discuss issues of mutual cooperation in the field of economic and trade development during his trip there. His visit follows that of UAE’s Foreign Minister to India within weeks of Modi’s trip to Abu Dhabi and this shows the seriousness of both nations which have now expanded their counter terror cooperation amid growing threat from IS and other terror groups in South Asia. Strengthening counter-terror cooperation also figured during Jaitley’s deliberations with UAE leadership.

The finance minister also invited large participation and investment in recently constituted National Investment and Infrastructure Fund (NIIF) by the Sovereign Wealth Funds and Pensions Funds of the UAE. He said the investment in NIIF will ensure good returns on investment as the government will invest these funds in infrastructure projects.

Source: http://economictimes.indiatimes.com/articleshow/49976782.cms