India plans to provide solar power at new low to states

12-Oct-2015 #Policy News Source: Live Mint

In a move to attract foreign investors to India’s solar energy sector, India plans to provide solar power at a new low of Rs.4.75 ($0.07) per unit to the states, reducing the foreign exchange risk involved. Under the new norm, firms such as state-owned NTPC will sell the power to the states at Rs.4.75 ($0.07) per unit against the expected bids of Rs.3.50 ($0.05) per unit by the developers in the region, with the balance going to a hedge fund and this hedge fund will be used for payment to cover the foreign exchange risk. The state-owned NTPC and Power Trading Corp. Ltd (PTC) are planning to implement the scheme for foreign currency equivalent tariff on a pilot basis for 1,000 MW each.

Read Full Article..