India solar PV energy


Assuming Rs.7.2 Cr/MW for 750 MW = Rs. 54,000,000,000 (Rs. 5400 Crore) , with Government having done the entire capacity (like BHEL etc are doing for 4000 MW), the 30% equity needed is only Rs.1620 Crore. (only Rs.400 Cr more, but, AD benefits are not known)

The list is quite conveniently silent on Accelerated Depreciation being taken by many of them, which we need to ask SECI to publish to know the real benefits of such kind of policy or scheme, because the difference in kwh price with AD and without is a meagre 60 paise 60/kwh and like Tata and Adani, these people will ask for increased tariff after selling the solar inverter project after taking away both AD and VGF benefits like Biomass guys are doing..

Moot question is, since no body is investing EQUITY, why not promote first generation entrepreneurs with 100% debt funding with low CAPEX (no equity padding) and no ROE...

1).Today in INDIA, Any Corporate company / Entity or the Crony Capitalism system is enjoying the FREE EQUITY (due to the prevailing policies / Democracy):

a). Either through Accelerated Depreciation and again earning 19 to 24% Return on Equity
b). Either through Capital Subsidy and again earning 19 to 24% ROE
c). VGF + AD :Viability Gap Funding and again earning 19 to 24% RoE.
d). EQUITY PADDING by jacking up the total solar inverter project cost and again earning the 19 to 24% ROE

This is the SOUND BASIS for our strong suggestion for 100% debt funding with full control stakes till the debt repayment as many Biomass power projects, even after taking away the Capital Subsidy (CFA of Rs.1.5 Crore/MW) are not functional and the debt is not paid and the Promoters have become RICH and the projects are not working !!

Thus, we are unable to create new generation entrepreneurs.

However, the effect of Policy to promote the new business model (VGF) experience to have low cost solar PV inverter energy and its effect is being analysed at our end and hence this request to MNRE/SECI to provide AD details (including the project cost indicated, if any, to arrive total tax savings value etc) both in Part A and Part B.

we need to highlight the total VGF outflow and tax loss and the success percentage of VGF business model.... Unfortunately, high government support is not creating new generation entrepreneurs for solar PV, which shall be driven by rural entrepreneurs to have uniform economic development with that low cost tariff can be offered by these small entrepreneurs due to 100% debt fund for 15 years with less overheads and margin (without project selling model after sucking these benefits) thus, serve the nation for longer period in a more decentralised way without MONOPOLY of large capacity holding by a corporate which is against democratic norms as the wealth shall be distributed to many hands with a good and transparent policy to provide self employment to many entrepreneurs and many local jobs through these local entrepreneurs, which will reduce burden on the Urban cities too.

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